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FN vs GFS

FN
Fabrinet
BEARISH
Price
$720.19
Market Cap
$25.8B
Sector
Technology
AI Confidence
85%
GFS
GLOBALFOUNDRIES Inc.
NEUTRAL
Price
$48.70
Market Cap
$26.74B
Sector
Technology
AI Confidence
75%

Valuation

P/E Ratio
FN
68.98
GFS
30.06
Forward P/E
FN
43.13
GFS
20.58
P/B Ratio
FN
11.81
GFS
2.27
P/S Ratio
FN
6.63
GFS
3.94
EV/EBITDA
FN
57.09
GFS
12.59

Profitability

Gross Margin
FN
12.01%
GFS
24.89%
Operating Margin
FN
10.1%
GFS
13.93%
Profit Margin
FN
9.69%
GFS
13.03%
ROE
FN
18.72%
GFS
7.79%
ROA
FN
8.12%
GFS
2.94%

Growth

Revenue Growth
FN
35.9%
GFS
0.0%
Earnings Growth
FN
30.7%
GFS
--

Financial Health

Debt/Equity
FN
0.0
GFS
0.14
Current Ratio
FN
2.68
GFS
2.62
Quick Ratio
FN
1.7
GFS
1.95

Dividends

Dividend Yield
FN
--
GFS
--
Payout Ratio
FN
0.0%
GFS
0.0%

AI Verdict

FN BEARISH

Fabrinet exhibits a critical disconnect between its market price ($720.19) and its fundamental value, with a weak Piotroski F-Score of 3/9 indicating deteriorating financial health trends. While the company boasts impressive revenue growth (35.9%) and a pristine balance sheet with zero debt, it is trading at a massive premium to its Intrinsic Value ($307.98) and Graham Number ($119.69). The combination of a high P/E ratio (68.98), bearish insider selling, and a failing technical trend suggests the stock is currently in a valuation bubble.

Strengths
Zero debt-to-equity ratio indicating an exceptionally clean balance sheet
Strong top-line growth with 35.9% YoY revenue increase
Consistent earnings track record with beats in the majority of the last 25 quarters
Risks
Extreme overvaluation with a P/E of 68.98 and P/B of 11.81
Weak Piotroski F-Score (3/9) suggesting declining operational efficiency
Bearish insider sentiment with $14.27M in sales and zero buys
GFS NEUTRAL

GFS presents a dichotomy between strong operational execution and poor deterministic valuation. While the Piotroski F-Score of 4/9 indicates stable financial health and the balance sheet is exceptionally clean (Debt/Equity 0.14), the stock trades at a significant premium to its Graham Number ($27.97) and Intrinsic Value ($11.34). Consistent earnings beats and positive EPS growth are offset by stagnant 0% revenue growth and bearish insider sentiment. The current price is nearing its 52-week high, suggesting a momentum-driven valuation rather than a fundamental one.

Strengths
Exceptionally low leverage with a Debt/Equity ratio of 0.14
Strong liquidity position evidenced by a Current Ratio of 2.62
Consistent track record of beating earnings estimates over 19 quarters
Risks
Severe overvaluation relative to Graham and Intrinsic value models
Stagnant top-line growth with 0.00% YoY and Q/Q revenue growth
Bearish insider activity with net selling over the last 6 months

Compare Another Pair

FN vs GFS: Head-to-Head Comparison

This page compares Fabrinet (FN) and GLOBALFOUNDRIES Inc. (GFS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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