FNFabrinet
Is the business good?
The checks split: nothing decisive, though thin cash backing (0.7×).
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 18% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FN?
Fabrinet earns 23% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 14 points above what the capital costs: growth creates value
- Operating margin
- 10.0%
Operating margin · Electronic Components median 8.4% · 12 months to Q4 2026
- Cash conversion
- 0.65×
Cash conversion · 1.08× a year ago · the operating profit has not turned into cash yet
- Gross margin
- 12%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 8.0% |
| FY2022 | 9.0% |
| FY2023 | 9.5% |
| FY2024 | 9.6% |
| FY2025 | 9.5% |
| FY2026 | 10.0% |
Details›
- Gross margin12 months to Q4 2026
- 12%
- Operating margin12 months to Q4 2026
- 10.0%
- Net margin12 months to Q4 2026
- 10%
- Free cash flow margin
- 0.09%
- Revenue, trailing twelve months
- $4.64B
- Free cash flow, trailing twelve months
- $4.2M
- Net income, trailing twelve months
- $473M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 23%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Electronic Components
Ranks #6 of 25 by RyuScore