Recent News
On July 8, 2025 Fabrinet shipped the first InnovizTwo LiDAR units from its high-volume production line after a production ramp, marking a manufacturing milestone for autonomous-vehicle LiDAR mass production.
Technical Analysis
Directional indicators show a price-biased trend: ADX at 27.08 indicates a strong trend in force while DI+ at 32.89 (dip & reversal) and DI- at 18.29 (peak & reversal) both align with bullish directional pressure; that directional bias supports the revenue-driven narrative.
MACD sits at 13.57 with a signal line at 13.06, representing a recent cross above the signal line (a short-term bullish trigger), but the MACD trend registers a peak & reversal, signaling waning momentum despite the crossover; expect momentum to require confirmation from price action.
MRO at -0.15 indicates price sits just below the model target and therefore carries potential to increase; the MRO trend reads peak & reversal, so the near-term mean-reversion potential exists but lacks strong momentum.
RSI at 60.75 with a peak & reversal suggests the market moved into mildly bullish territory and has since pulled back from a short-term high; that pattern increases odds of consolidation before resumption or deeper correction depending on volume.
Price relationships support a constructive but cautious view: last close $366.66 above the 200-day average $253.41, showing long-term strength, while price sits marginally below the 20-day average $369.48 and the 12-day EMA $368.34 (12-day EMA trend: peak & reversal), implying short-term consolidation near recent highs. Bollinger bands show a 1x lower band at $357.82 and upper band at $381.14; price activity inside those bands suggests contained volatility with upside room if momentum returns.
Fundamental Analysis
Total revenue $909,692,000 with YoY revenue growth of 46.36% demonstrates material top-line acceleration; quarterly revenue change shows smaller sequential movement. Gross profit $111,291,000 and gross margin 12.23% lag the industry peer mean gross margin of 39.93% (industry peer mean), indicating lower conversion of revenue to gross profit versus peers.
Operating metrics: EBIT $93,236,000 and an EBIT margin of 10.25% compare below the industry peer mean EBIT margin of 17.02% and industry peer median 17.44%, reflecting tighter operating leverage relative to peers. QoQ EBIT margin improved by 3.54% even as EBIT margin fell YoY by 9.16%.
Reported EPS $2.42 missed the estimate $2.55 by $0.13, an EPS surprise of -5.10%. Forward EPS $2.7675 and forward PE 84.83 imply elevated forward valuation versus current fundamentals; WMDST values the stock as over-valued.
Cash and liquidity provide a buffer: cash and short-term investments $934,244,000, cash ratio 115.36%, current ratio 299.92%, and quick ratio 228.17% show ample short-term coverage. Total debt $5,471,000 produces debt-to-assets 0.19%, well below the industry peer mean 26.24% (industry peer mean), signaling minimal leverage risk.
Capital efficiency: asset turnover 0.3338 exceeds the industry peer mean 0.1904 (industry peer mean), showing stronger revenue generation per dollar of assets. Return on assets 3.20% tops the industry peer mean 1.79% (industry peer mean), while return on equity 4.40% remains modest. Free cash flow $4,459,000 and free cash flow yield 0.04% trail profitability, and free cash flow metrics show recent QoQ compression.
Valuation note: price multiples present a stretched picture—P/E ~119.31, P/B ~5.35 (below the industry peer mean P/B 6.09), and enterprise multiple ~90.08—consistent with WMDST’s over-valued determination. Strong revenue growth and production partnerships support the premium, but margin and cash-flow metrics constrain the valuation justification.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-18 |
| NEXT REPORT DATE: | 2025-11-17 |
| CASH FLOW | Begin Period Cash Flow | $ 306.9 M |
| Operating Cash Flow | $ 55.1 M | |
| Capital Expenditures | $ -50.63 M | |
| Change In Working Capital | $ -52.94 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -480.00 K | |
| End Period Cash Flow | $ 306.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 909.7 M | |
| Forward Revenue | $ 257.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 798.4 M | |
| Depreciation | $ 14.2 M | |
| Depreciation and Amortization | $ 14.2 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 820.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 111.3 M | |
| EBITDA | $ 107.4 M | |
| EBIT | $ 93.2 M | |
| Operating Income | $ 89.1 M | |
| Interest Income | $ 7.8 M | |
| Interest Expense | — | |
| Net Interest Income | $ 7.8 M | |
| Income Before Tax | $ 93.2 M | |
| Tax Provision | $ 6.0 M | |
| Tax Rate | 6.466 % | |
| Net Income | $ 87.2 M | |
| Net Income From Continuing Operations | $ 87.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.55 | |
| EPS Actual | $ 2.42 | |
| EPS Difference | $ -0.13 | |
| EPS Surprise | -5.098 % | |
| Forward EPS | $ 2.77 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.8 B | |
| Intangible Assets | $ 2.2 M | |
| Net Tangible Assets | $ 2.0 B | |
| Total Current Assets | $ 2.4 B | |
| Cash and Short-Term Investments | $ 934.2 M | |
| Cash | $ 306.4 M | |
| Net Receivables | $ 758.9 M | |
| Inventory | $ 581.0 M | |
| Long-Term Investments | $ 623.0 K | |
| LIABILITIES | ||
| Accounts Payable | $ 637.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 809.8 M | |
| Net Debt | — | |
| Total Debt | $ 5.5 M | |
| Total Liabilities | $ 849.6 M | |
| EQUITY | ||
| Total Equity | $ 2.0 B | |
| Retained Earnings | $ 2.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 55.47 | |
| Shares Outstanding | 35.728 M | |
| Revenue Per-Share | $ 25.46 | |
| VALUATION | Market Capitalization | $ 10.6 B |
| Enterprise Value | $ 9.7 B | |
| Enterprise Multiple | 90.079 | |
| Enterprise Multiple QoQ | 40.576 % | |
| Enterprise Multiple YoY | 21.413 % | |
| Enterprise Multiple IPRWA | high: 259.951 FN: 90.079 mean: 66.892 median: 63.645 low: -219.031 |
|
| EV/R | 10.639 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.429 | |
| Asset To Liability | 3.333 | |
| Debt To Capital | 0.003 | |
| Debt To Assets | 0.002 | |
| Debt To Assets QoQ | -11.468 % | |
| Debt To Assets YoY | 66.379 % | |
| Debt To Assets IPRWA | high: 0.807 median: 0.296 mean: 0.262 low: 0.006 FN: 0.002 |
|
| Debt To Equity | 0.003 | |
| Debt To Equity QoQ | -8.0 % | |
| Debt To Equity YoY | 78.065 % | |
| Debt To Equity IPRWA | high: 2.066 median: 0.7 mean: 0.653 FN: 0.003 low: -0.922 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.352 | |
| Price To Book QoQ | 39.168 % | |
| Price To Book YoY | 15.603 % | |
| Price To Book IPRWA | high: 11.125 mean: 6.088 FN: 5.352 median: 4.517 low: -7.517 |
|
| Price To Earnings (P/E) | 119.311 | |
| Price To Earnings QoQ | 46.869 % | |
| Price To Earnings YoY | 28.584 % | |
| Price To Earnings IPRWA | high: 287.529 FN: 119.311 mean: 88.944 median: 86.196 low: -168.539 |
|
| PE/G Ratio | -30.068 | |
| Price To Sales (P/S) | 11.66 | |
| Price To Sales QoQ | 38.589 % | |
| Price To Sales YoY | 8.668 % | |
| Price To Sales IPRWA | high: 42.058 mean: 15.289 median: 13.0 FN: 11.66 low: 0.0 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 84.827 | |
| Forward PE/G | -21.378 | |
| Forward P/S | 41.137 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.85 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.334 | |
| Asset Turnover Ratio QoQ | -1.184 % | |
| Asset Turnover Ratio YoY | 1.376 % | |
| Asset Turnover Ratio IPRWA | high: 0.479 FN: 0.334 mean: 0.19 median: 0.187 low: 0.001 |
|
| Receivables Turnover | 1.284 | |
| Receivables Turnover Ratio QoQ | -1.455 % | |
| Receivables Turnover Ratio YoY | 0.242 % | |
| Receivables Turnover Ratio IPRWA | high: 2.906 mean: 1.51 median: 1.38 FN: 1.284 low: 0.267 |
|
| Inventory Turnover | 1.436 | |
| Inventory Turnover Ratio QoQ | -4.827 % | |
| Inventory Turnover Ratio YoY | -0.36 % | |
| Inventory Turnover Ratio IPRWA | high: 2.529 FN: 1.436 median: 1.08 mean: 1.019 low: 0.063 |
|
| Days Sales Outstanding (DSO) | 71.078 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 68.334 | |
| Cash Conversion Cycle Days QoQ | 0.209 % | |
| Cash Conversion Cycle Days YoY | -8.351 % | |
| Cash Conversion Cycle Days IPRWA | high: 272.391 mean: 101.94 median: 88.157 FN: 68.334 low: -85.228 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.562 | |
| CapEx To Revenue | -0.056 | |
| CapEx To Depreciation | -3.563 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.0 B | |
| Net Invested Capital | $ 2.0 B | |
| Invested Capital | $ 2.0 B | |
| Net Tangible Assets | $ 2.0 B | |
| Net Working Capital | $ 1.6 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.154 | |
| Current Ratio | 2.999 | |
| Current Ratio QoQ | -9.796 % | |
| Current Ratio YoY | -16.86 % | |
| Current Ratio IPRWA | high: 7.762 FN: 2.999 mean: 2.161 median: 2.016 low: 0.034 |
|
| Quick Ratio | 2.282 | |
| Quick Ratio QoQ | -10.09 % | |
| Quick Ratio YoY | -17.84 % | |
| Quick Ratio IPRWA | high: 7.334 FN: 2.282 mean: 1.64 median: 1.456 low: 0.201 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.051 | |
| Cost Of Debt | 0.0 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | 0.083 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 68.688 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 8.099 % | |
| Revenue Growth | 4.347 % | |
| Revenue Growth QoQ | -5.108 % | |
| Revenue Growth YoY | 46.364 % | |
| Revenue Growth IPRWA | high: 79.411 % mean: 10.144 % median: 9.582 % FN: 4.347 % low: -43.951 % |
|
| Earnings Growth | -3.968 % | |
| Earnings Growth QoQ | 15.081 % | |
| Earnings Growth YoY | -574.074 % | |
| Earnings Growth IPRWA | high: 200.0 % median: 26.316 % mean: 19.627 % FN: -3.968 % low: -133.333 % |
|
| MARGINS | ||
| Gross Margin | 12.234 % | |
| Gross Margin QoQ | 4.377 % | |
| Gross Margin YoY | -0.318 % | |
| Gross Margin IPRWA | high: 98.998 % mean: 39.934 % median: 36.34 % FN: 12.234 % low: -49.356 % |
|
| EBIT Margin | 10.249 % | |
| EBIT Margin QoQ | 3.536 % | |
| EBIT Margin YoY | -9.164 % | |
| EBIT Margin IPRWA | high: 123.871 % median: 17.436 % mean: 17.015 % FN: 10.249 % low: -211.309 % |
|
| Return On Sales (ROS) | 9.797 % | |
| Return On Sales QoQ | -1.03 % | |
| Return On Sales YoY | -13.17 % | |
| Return On Sales IPRWA | high: 43.501 % median: 16.406 % mean: 16.376 % FN: 9.797 % low: -352.254 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 4.5 M | |
| Free Cash Flow Yield | 0.042 % | |
| Free Cash Flow Yield QoQ | -93.215 % | |
| Free Cash Flow Yield YoY | -95.167 % | |
| Free Cash Flow Yield IPRWA | high: 4.857 % mean: 1.049 % median: 0.912 % FN: 0.042 % low: -16.248 % |
|
| Free Cash Growth | -90.174 % | |
| Free Cash Growth QoQ | 74.519 % | |
| Free Cash Growth YoY | 367.344 % | |
| Free Cash Growth IPRWA | high: 364.739 % median: 50.564 % mean: 30.979 % FN: -90.174 % low: -329.708 % |
|
| Free Cash To Net Income | 0.051 | |
| Cash Flow Margin | 7.402 % | |
| Cash Flow To Earnings | 0.772 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.2 % | |
| Return On Assets QoQ | 1.587 % | |
| Return On Assets YoY | -9.681 % | |
| Return On Assets IPRWA | high: 17.834 % FN: 3.2 % median: 2.058 % mean: 1.793 % low: -36.426 % |
|
| Return On Capital Employed (ROCE) | 4.612 % | |
| Return On Equity (ROE) | 0.044 | |
| Return On Equity QoQ | 3.238 % | |
| Return On Equity YoY | -5.254 % | |
| Return On Equity IPRWA | high: 0.433 mean: 0.05 median: 0.049 FN: 0.044 low: -0.489 |
|
| DuPont ROE | 4.485 % | |
| Return On Invested Capital (ROIC) | 4.4 % | |
| Return On Invested Capital QoQ | 3.238 % | |
| Return On Invested Capital YoY | -146.448 % | |
| Return On Invested Capital IPRWA | high: 8.434 % FN: 4.4 % mean: 3.148 % median: 3.068 % low: -15.502 % |
|