Fabrinet - AI Stock Analysis

Analysis generated October 27, 2025

Fabrinet is a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products. The company's manufacturing services comprise products in the telecom, datacom, automotive, and industrial sectors. Fabrinet maintains a robust global presence with its facilities strategically located to optimize both production and logistics.

Fundamental Analysis

For the last quarter, Fabrinet's revenue reached $910 million, marking an increase of 4.35% from the preceding quarter. Year-over-year comparisons show an even healthier growth of 20.77%, indicating robust expansion and resilience in the company's operations.

Net income for the last quarter was $87 million, up by 7.28% compared to the previous quarter. Over the last year, net income has grown by 7.58%, showcasing consistent profitability.

EBITDA also saw favorable trends, recording $107 million for the last quarter. This is a growth of 7.74% from the previous quarter and a notable increase of 10.31% year-over-year. These figures collectively indicate strong operational performance and effective cost management.

Currently, Fabrinet's Price-to-Earnings (P/E) ratio stands at 45.86. While this may be perceived as high—potentially signaling an overvaluation or investor optimism—it poses a caveat for potential investors seeking value opportunities. Additionally, recent insider selling within the company could be indicative of a bearish internal outlook.

Technical Analysis

The current stock price of Fabrinet stands at $423.61. Over the past month, there has been an impressive increase of 18.03%, demonstrating strong short-term momentum. The stock price has surged by 72.44% compared to the same period last year, reflecting a positive long-term trend.

The current 10-day Simple Moving Average (SMA10) is $414.52, which is higher than the previous SMA10 of $413.15. This suggests a potential upward trend in price movement. Furthermore, the Relative Strength Index (RSI) is at 67.3, indicating a neutral condition; however, it is edging closer to overbought territory.

Alternative Data Analysis

In terms of job postings and employee sentiment, Fabrinet shows promising signs. With 23 open positions, indicating a 53% increase in the last couple of months, this suggests that the company is in an expansion phase, which is typically a positive sign.

The estimated 12,000 visitors to their webpage, with an increase of 200% in recent months, reflects heightened customer interest and acquisition, signaling potential future revenue growth.

From the perspective of customer engagement, the AltIndex AI score, which predicts stock price movements based on multifaceted data analysis, assigns Fabrinet a score of 48. This results in a hold signal, denoting that while the stock shows moderate growth potential, it is also accompanied by some cautionary flags.

Conclusion and Recommendation

Fabrinet illustrates a compelling growth story, driven by consistent revenue and earnings growth. The positive momentum seen in their technical indicators and the increase in customer interest further support a bullish outlook. However, the high P/E ratio combined with recent insider sales and a neutral employee outlook suggests caution. Considering the AltIndex AI hold signal and the overall mixed indicators, it is advisable to approach Fabrinet with a balanced view. Investors may consider holding onto existing shares while closely monitoring upcoming quarters for sustained performance and market sentiment.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.