Stock fact sheet · data as of
Fabrinet (FN): fair value, margin of safety and Wheel Score
Technology · Hardware, Equipment & Parts · Cayman Islands · High Growth
Is FN undervalued?
FN closed at 385.20 on 16 Oct 2026, which is 27% above the GLS average fair value of 302.13 from 8 models. 6 of them value the shares below today's price. Our screens read that as "no margin of safety": the stock is not a value candidate at this price, whatever the quality numbers say.
The 8 models disagree widely: Payback Time gives 3.35 while GLS Growth gives 799.86. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files FN under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for FN
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 148.70 | -61% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 142.70 | -63% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 755.47 | +96% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 330.19 | -14% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 799.86 | +108% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 90.04 | -77% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 3.35 | -99% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 146.75 | -62% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 47.52 | -88% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 769.50 | +100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - FN passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 8.1 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are high - ROIC 19.2%, ROE 19.3%, ROA 12.1% - with debt at 0.00 times equity and a free-cash-flow yield of 0.0%.
Fabrinet pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Optical Communications 73%, Non Optical Communications 27% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 2/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 19.2% |
|---|---|---|---|
| GLS Moat | 8.1 / 10 | ROE | 19.3% |
| Debt / equity | 0.00 | ROA | 12.1% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 2 / 10 |
Wheel Score 60: Fair
FN scores 60 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 1/25, Health 13/20, Moat 12/15, Premium 15/20, Stability 18/20. Value (1/25) is where the points are missing.
Implied volatility is 79% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (15 of 20) because volatility this high usually comes with a reason. Chain open interest is 26,847 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.0M shares a day on a market cap of $13.8B, with a beta of 1.22 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 1 / 25 | -27% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 12 / 15 | moat 8.1/10 | |
| Premium | 15 / 20 | implied volatility 79% | |
| Stability | 18 / 20 | 1.0M shares/day, $13.8B cap, beta 1.22 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Nov 2026 (after the close), 17 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Hardware, Equipment & Parts
The 12 companies below are the closest to Fabrinet by market cap within the Hardware, Equipment & Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TRMB Trimble Inc. | 59.10 | 50.18 | -18% | 45Weak | $13.8B |
| MKSI MKS Inc. | 228.52 | 114.56 | -99% | 55Fair | $15.5B |
| VICR Vicor Corporation | 245.35 | 74.68 | -229% | 44Weak | $11.3B |
| FTV Fortive Corporation | 57.78 | 32.97 | -75% | 63Fair | $17.5B |
| TTMI TTM Technologies, Inc. | 103.31 | 53.19 | -94% | 51Fair | $10.9B |
| SANM Sanmina Corporation | 194.32 | 152.67 | -27% | 53Fair | $10.4B |
| AEIS Advanced Energy Industries, Inc. | 252.08 | 91.93 | -174% | 55Fair | $10.1B |
| LFUS Littelfuse, Inc. | 391.83 | 187.21 | -109% | 45Weak | $10.0B |
| CGNX Cognex Corporation | 55.67 | 17.47 | -219% | 63Fair | $9.4B |
| RAL Ralliant Corp | 69.89 | 21.73 | -222% | 45Weak | $7.7B |
| TDY Teledyne Technologies Incorporated | 608.90 | 412.38 | -48% | 61Fair | $28.2B |
| PLXS Plexus Corp. | 245.72 | 146.78 | -67% | 57Fair | $6.5B |
Screen the whole market the same way
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Start free See the Sunday ScanQuestions about FN
Is FN undervalued right now?
No: at 385.20 the stock trades 27% above the GLS average fair value of 302.13 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of FN and what does it mean?
FN scores 60 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for FN?
302.13 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Fabrinet report earnings next?
The next earnings report is due on 2 Nov 2026 (after the close), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does FN have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 26,847 open interest across all expiries and implied volatility of 79% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.