Recent News
June 3, 2026: Short interest rose sharply into early June even as the stock rallied, with commentary noting active short rebuilding and ample borrow availability that reduced mechanical squeeze risk. August 2026: Fabrinet expanded its U.S. footprint via an all-cash acquisition of a three-building campus in Santa Clara (approximately $76.9M), increasing Silicon Valley capacity and customer proximity.
Technical Analysis
Directional indicators and ADX: ADX at 21.38 signals an emerging trend rather than a strong directional regime. DI+ has completed a dip-and-reverse and DI– shows a peak-and-reverse, both readings that register as bullish pressure; together they support a near-term upside bias that would help reconcile price with the valuation multiple if sustained.
MACD: MACD sits negative at –26.94 but shows a dip-and-reverse pattern, indicating developing bullish momentum. MACD remains below its signal line (–22.48), so momentum improvement exists but lacks confirmation from a signal-line crossover; upside scenarios require that confirmation to materially shift medium-term momentum relative to the current valuation.
MRO (momentum/regression oscillator): MRO at –7.25 places price below the model target and implies upside potential toward that target; the negative value suggests room for a corrective move higher rather than immediate downside pressure.
RSI: RSI at 42.05 with a dip-and-reverse pattern signals recovery from lower momentum levels and supports a short-term rebound, though the reading does not reach neutral territory yet, so strength remains tentative until RSI moves above midrange.
Price versus moving averages and bands: Last close $416.31 sits below the 20-day ($421.62), 50-day ($480.45), and 200-day ($536.14) averages, indicating the medium- and long-term technical bias remains below price averages; however the close already sits above the lower 1x Bollinger band ($400.85) and below the upper 1x band ($442.39), leaving room to traverse the band toward nearby resistance without a large volatility expansion.
Volatility and volume context: Short-term beta (42-day 3.44; 52-week 2.87) implies outsized sensitivity to market moves and newsflow; current intraday volume sits slightly below the 10- and 50-day averages, suggesting any directional thrust will likely be amplified by the elevated beta environment rather than broad conviction volume.
Fundamental Analysis
Revenue and growth: Total revenue $1,315,788,000 with sequential revenue growth of 16.31% QoQ and strong year-over-year expansion of 92.27%. The two-period profile shows recent acceleration QoQ while YoY growth reflects a material rebound in demand.
Profitability: Gross margin 12.01% (QoQ +1.05%, YoY –1.82%). Operating margin 10.21% and EBIT margin 17.22% (EBIT margin QoQ +74.18%, YoY +68.01%). The combination of expanding operating and EBIT margins supports a premium valuation multiple and reflects operating leverage operating through the revenue base.
Earnings and guidance context: Reported EPS $4.10 versus estimate $3.81, an EPS surprise of roughly 7.61%. Forward EPS $5.45 and forward P/E ~112.82 reflect expectations embedded in the market for further earnings uplift; the trailing P/E reads ~133.60, indicating the market already prices elevated future profitability.
Cash, leverage and cash generation: Cash and short-term investments $875,055,000 and cash $346,711,000 provide a strong liquidity buffer. Total debt $4,013,000 yields effectively negligible leverage (debt-to-assets ~0.10% and debt-to-equity ~0.16%). Operating cash flow $50,991,000 contrasts with free cash flow of –$37,401,000, producing a negative free cash flow yield of –0.19%; the operating cash inflow reduces financial risk, but negative FCF limits near-term cash conversion upside.
Returns and efficiency: Return on equity ~5.67% and return on assets ~3.75%; asset turnover 0.3547 and cash conversion cycle ~68.2 days. These metrics show modest capital turnover with healthy capital structure and room to convert margin gains into returns if revenue growth normalizes.
Valuation summary: WMDST values the stock as EVR 14.26. Market multiples sit at a premium (P/E ~133.6, P/B ~7.998, P/S ~14.918, enterprise multiple ~76.20), implying expectations for continued margin expansion and revenue growth to support those multiples. Liquidity and minimal leverage reduce balance-sheet risk, while negative free cash flow and the premium multiples temper the margin for error.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-08-17 |
| NEXT REPORT DATE: | 2026-11-16 |
| CASH FLOW | Begin Period Cash Flow | $ 357.3 M |
| Operating Cash Flow | $ 51.0 M | |
| Capital Expenditures | $ -92.37 M | |
| Change In Working Capital | $ -57.53 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -9.84 M | |
| End Period Cash Flow | $ 347.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.3 B | |
| Forward Revenue | $ 461.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.2 B | |
| Depreciation | $ 19.6 M | |
| Depreciation and Amortization | $ 19.6 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 158.1 M | |
| EBITDA | $ 246.2 M | |
| EBIT | $ 226.6 M | |
| Operating Income | $ 134.4 M | |
| Interest Income | $ 7.0 M | |
| Interest Expense | — | |
| Net Interest Income | $ 6.9 M | |
| Income Before Tax | $ 199.7 M | |
| Tax Provision | $ 60.5 M | |
| Tax Rate | 30.272 % | |
| Net Income | $ 139.3 M | |
| Net Income From Continuing Operations | $ 139.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 3.81 | |
| EPS Actual | $ 4.10 | |
| EPS Difference | $ 0.29 | |
| EPS Surprise | 7.612 % | |
| Forward EPS | $ 5.45 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.9 B | |
| Intangible Assets | $ 2.5 M | |
| Net Tangible Assets | $ 2.5 B | |
| Total Current Assets | $ 3.2 B | |
| Cash and Short-Term Investments | $ 875.1 M | |
| Cash | $ 346.7 M | |
| Net Receivables | $ 1.0 B | |
| Inventory | $ 1.0 B | |
| Long-Term Investments | $ 21.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.0 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 1.4 B | |
| Net Debt | — | |
| Total Debt | $ 4.0 M | |
| Total Liabilities | $ 1.5 B | |
| EQUITY | ||
| Total Equity | $ 2.5 B | |
| Retained Earnings | $ 2.6 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 68.49 | |
| Shares Outstanding | 35.835 M | |
| Revenue Per-Share | $ 36.72 | |
| VALUATION | Market Capitalization | $ 19.6 B |
| Enterprise Value | $ 18.8 B | |
| Enterprise Multiple | 76.199 | |
| Enterprise Multiple QoQ | -47.564 % | |
| Enterprise Multiple YoY | -15.409 % | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 14.256 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.594 | |
| Asset To Liability | 2.685 | |
| Debt To Capital | 0.002 | |
| Debt To Assets | 0.001 | |
| Debt To Assets QoQ | -18.254 % | |
| Debt To Assets YoY | -46.632 % | |
| Debt To Assets IPRWA | — | |
| Debt To Equity | 0.002 | |
| Debt To Equity QoQ | -14.583 % | |
| Debt To Equity YoY | -40.58 % | |
| Debt To Equity IPRWA | — | |
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.998 | |
| Price To Book QoQ | -12.106 % | |
| Price To Book YoY | 49.427 % | |
| Price To Book IPRWA | — | |
| Price To Earnings (P/E) | 133.599 | |
| Price To Earnings QoQ | -15.091 % | |
| Price To Earnings YoY | 11.976 % | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | 13.079 | |
| Price To Sales (P/S) | 14.918 | |
| Price To Sales QoQ | -13.622 % | |
| Price To Sales YoY | 27.936 % | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | 112.817 | |
| Forward PE/G | 11.044 | |
| Forward P/S | 42.573 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.616 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.355 | |
| Asset Turnover Ratio QoQ | -1.024 % | |
| Asset Turnover Ratio YoY | 6.252 % | |
| Asset Turnover Ratio IPRWA | — | |
| Receivables Turnover | 1.366 | |
| Receivables Turnover Ratio QoQ | -3.806 % | |
| Receivables Turnover Ratio YoY | 6.404 % | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | 1.22 | |
| Inventory Turnover Ratio QoQ | -4.475 % | |
| Inventory Turnover Ratio YoY | -14.982 % | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 66.801 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 68.185 | |
| Cash Conversion Cycle Days QoQ | 3.726 % | |
| Cash Conversion Cycle Days YoY | -0.219 % | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.749 | |
| CapEx To Revenue | -0.07 | |
| CapEx To Depreciation | -4.71 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.5 B | |
| Net Invested Capital | $ 2.5 B | |
| Invested Capital | $ 2.5 B | |
| Net Tangible Assets | $ 2.5 B | |
| Net Working Capital | $ 1.8 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.624 | |
| Current Ratio | 2.253 | |
| Current Ratio QoQ | -11.623 % | |
| Current Ratio YoY | -24.888 % | |
| Current Ratio IPRWA | — | |
| Quick Ratio | 1.525 | |
| Quick Ratio QoQ | -14.868 % | |
| Quick Ratio YoY | -33.181 % | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.016 | |
| Cost Of Debt | 0.0 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | 0.036 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 79.517 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 11.456 % | |
| Revenue Growth | 8.358 % | |
| Revenue Growth QoQ | 16.309 % | |
| Revenue Growth YoY | 92.271 % | |
| Revenue Growth IPRWA | — | |
| Earnings Growth | 10.215 % | |
| Earnings Growth QoQ | -4.657 % | |
| Earnings Growth YoY | -357.434 % | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 12.012 % | |
| Gross Margin QoQ | 1.052 % | |
| Gross Margin YoY | -1.815 % | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 17.219 % | |
| EBIT Margin QoQ | 74.176 % | |
| EBIT Margin YoY | 68.007 % | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | 10.212 % | |
| Return On Sales QoQ | 3.298 % | |
| Return On Sales YoY | 4.236 % | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -37.40 M | |
| Free Cash Flow Yield | -0.191 % | |
| Free Cash Flow Yield QoQ | 253.704 % | |
| Free Cash Flow Yield YoY | -554.762 % | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | 231.51 % | |
| Free Cash Growth QoQ | 113.22 % | |
| Free Cash Growth YoY | -356.737 % | |
| Free Cash Growth IPRWA | — | |
| Free Cash To Net Income | -0.269 | |
| Cash Flow Margin | 3.875 % | |
| Cash Flow To Earnings | 0.366 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.754 % | |
| Return On Assets QoQ | 1.597 % | |
| Return On Assets YoY | 17.312 % | |
| Return On Assets IPRWA | — | |
| Return On Capital Employed (ROCE) | 9.032 % | |
| Return On Equity (ROE) | 0.057 | |
| Return On Equity QoQ | 4.436 % | |
| Return On Equity YoY | 28.955 % | |
| Return On Equity IPRWA | — | |
| DuPont ROE | 5.853 % | |
| Return On Invested Capital (ROIC) | 6.437 % | |
| Return On Invested Capital QoQ | 32.449 % | |
| Return On Invested Capital YoY | 46.295 % | |
| Return On Invested Capital IPRWA | — | |