FabrinetFN -7.57%91 Return-on-Tangible-Equity is 22.34% as of Mar. 2026, which is 44% above its 10-year median of 15.54. GuruFocus rates FN with a GF Score™ of 91/100 and a GF Value™ of $365.21 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,378 Hardware companies, Fabrinet ranks better than 86.25% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Fabrinet's annualized net income for the quarter that ended in Mar. 2026 was $501 Mil. Fabrinet's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,242 Mil. Therefore, Fabrinet's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 22.34%.
The historical rank and industry rank for Fabrinet's Return-on-Tangible-Equity or its related term are showing as below:
FN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.99 Med: 15.54 Max: 20.18
Current: 20.18
During the past 13 years, Fabrinet's highest Return-on-Tangible-Equity was 20.18%. The lowest was 11.99%. And the median was 15.54%.
FN's Return-on-Tangible-Equity is ranked better than 86.25% of 2378
companies
in the Hardware industry
Industry Median: 5.25
vs FN: 20.18
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Fabrinet Return-on-Tangible-Equity Related Terms
Fabrinet Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Fabrinet's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FN vs TTMI, VICR, SANM: Return-on-Tangible-Equity Comparison
For the Electronic Components subindustry, Fabrinet's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Fabrinet Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Fabrinet's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Fabrinet's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 22.34% mean?
Fabrinet (FN) has a Return-on-Tangible-Equity of 22.34% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fabrinet and its competitors. This is 44% above median its historical median of 15.54. Over the past decade, Fabrinet's Return-on-Tangible-Equity has ranged from 11.99 to 20.18. According to the industry distribution chart, Fabrinet ranks #327 out of 2378 companies in the Hardware industry, placing it in the top 13.8%.
Is Fabrinet's Return-on-Tangible-Equity too high?
Fabrinet's current Return-on-Tangible-Equity of 22.34% is 44% above median its 10-year median of 15.54. Over the past 10 years, this metric has ranged from a low of 11.99 to a high of 20.18. The Hardware industry median Return-on-Tangible-Equity is 5.25. Fabrinet's value of 22.34% is 325.5% above this industry median. Based on the distribution chart, Fabrinet ranks #327 out of 2378 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Fabrinet has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fabrinet's Return-on-Tangible-Equity compare to TTMI and VICR?
According to the Hardware industry distribution chart, Fabrinet ranks #327 out of 2378 companies for Return-on-Tangible-Equity. This places Fabrinet in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.25. Fabrinet's value of 22.34% is 325.5% above this benchmark. Historically, Fabrinet's own Return-on-Tangible-Equity has ranged from 11.99 to 20.18 over the past decade. While the company's 10-year median is 15.54 vs. the industry median of 5.25, Fabrinet has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.25, based on 2,378 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fabrinet's current Return-on-Tangible-Equity of 22.34% is 325.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fabrinet and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fabrinet's current Return-on-Tangible-Equity is 22.34%, which is 44% above median its own 10-year median of 15.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fabrinet stock overvalued right now?
Based on GuruFocus' analysis, Fabrinet (FN) is currently considered Significantly Overvalued. The stock's GF Value™ is $365.21, compared to a current price of $524.79 — trading 43.7% above its estimated fair value. The current Return-on-Tangible-Equity is 22.34%, which is 44% above median its 10-year median of 15.54 and 325.5% above the Hardware industry median of 5.25. Fabrinet's overall GF Score™ is 91/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Fabrinet (FN), the current Return-on-Tangible-Equity is 22.34% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fabrinet (FN) Overvalued in 2026?
Based on GuruFocus' analysis, Fabrinet stock appears to be overvalued.
The current stock price of $524.79 is trading 43.7% above its estimated GF Value™ of $365.21.
GuruFocus considers Fabrinet to be Significantly Overvalued.
Key valuation signals for FN:
Return-on-Tangible-Equity: 22.34% (44% above median its 10-year median of 15.54)
GF Value™: $365.21 vs. price of $524.79 (43.7% above fair value)
Industry Position: 325.5% above the Hardware median (#327 of 2378)
No single metric tells the full story. See the FN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fabrinet provides advance-level optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company offers a broad range of advance optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advance-level of packaging, integration, final assembly, and testing. The company generates the majority of its revenue from North America and Asia-Pacific, with the rest from Europe.
91GF Score
Get the complete analysis for FN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FN has been successfully added to your 
