WallStSmart

Fabrinet (FN)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fabrinet generates 190% more annual revenue ($4.24B vs $1.46B). FN leads profitability with a 9.9% profit margin vs 1.6%. FN trades at a lower P/E of 52.4x. FN earns a higher WallStSmart Score of 65/100 (C+).

FN

Buy

65

out of 100

Grade: C+

Growth: 9.3Profit: 7.0Value: 4.3Quality: 8.0
Piotroski: 2/9Altman Z: 4.74

SONO

Hold

45

out of 100

Grade: D+

Growth: 6.0Profit: 4.0Value: 3.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for FN.

SONOSignificantly Overvalued (-34.6%)

Margin of Safety

-34.6%

Fair Value

$12.26

Current Price

$15.08

$2.82 premium

UndervaluedFair: $12.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FN4 strengths · Avg: 10.0/10
Revenue GrowthGrowth
39.3%10/10

Revenue surging 39.3% year-over-year

EPS GrowthGrowth
53.3%10/10

Earnings expanding 53.3% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7410/10

Safe zone — low bankruptcy risk

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

Areas to Watch

FN4 concerns · Avg: 2.8/10
Price/BookValuation
9.7x4/10

Trading at 9.7x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
52.4x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-10.83M2/10

Negative free cash flow — burning cash

SONO4 concerns · Avg: 3.0/10
Market CapQuality
$1.88B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : FN

The strongest argument for FN centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 39.3% demonstrates continued momentum. PEG of 1.19 suggests the stock is reasonably priced for its growth.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : FN

The primary concerns for FN are Price/Book, Piotroski F-Score, P/E Ratio. A P/E of 52.4x leaves little room for execution misses.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 92.8x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

FN profiles as a hypergrowth stock while SONO is a value play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.94 — expect wider price swings.

FN is growing revenue faster at 39.3% — sustainability is the question.

FN generates stronger free cash flow (-11M), providing more financial flexibility.

Bottom Line

FN scores higher overall (65/100 vs 45/100) and 39.3% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Fabrinet

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Fabrinet offers optical packaging and precision electronic, electromechanical and optical manufacturing services in North America, Asia-Pacific and Europe. The company is headquartered in George Town, the Cayman Islands.

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Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.

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