WallStSmart

Fabrinet (FN)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fabrinet generates 171% more annual revenue ($3.89B vs $1.44B). FN leads profitability with a 9.7% profit margin vs -1.2%. FN earns a higher WallStSmart Score of 65/100 (C+).

FN

Buy

65

out of 100

Grade: C+

Growth: 9.3Profit: 7.0Value: 3.3Quality: 8.0
Piotroski: 2/9Altman Z: 4.74

SONO

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FNSignificantly Overvalued (-86.5%)

Margin of Safety

-86.5%

Fair Value

$249.61

Current Price

$643.46

$393.85 premium

UndervaluedFair: $249.61Overvalued
SONOUndervalued (+42.1%)

Margin of Safety

+42.1%

Fair Value

$28.49

Current Price

$14.67

$13.82 discount

UndervaluedFair: $28.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FN4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
35.9%10/10

Revenue surging 35.9% year-over-year

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7410/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
30.7%8/10

Earnings expanding 30.7% YoY

SONO1 strengths · Avg: 10.0/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Areas to Watch

FN4 concerns · Avg: 2.8/10
Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
61.8x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-5.35M2/10

Negative free cash flow — burning cash

SONO4 concerns · Avg: 2.0/10
Market CapQuality
$1.77B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.9%2/10

ROE of -3.9% — below average capital efficiency

Revenue GrowthGrowth
-0.9%2/10

Revenue declined 0.9%

Profit MarginProfitability
-1.2%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : FN

The strongest argument for FN centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 35.9% 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.

Bear Case : FN

The primary concerns for FN are Price/Book, Piotroski F-Score, P/E Ratio. A P/E of 61.8x leaves little room for execution misses.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

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

SONO carries more volatility with a beta of 2.00 — expect wider price swings.

FN is growing revenue faster at 35.9% — sustainability is the question.

SONO generates stronger free cash flow (157M), providing more financial flexibility.

Bottom Line

FN scores higher overall (65/100 vs 42/100) and 35.9% revenue growth. SONO offers better value entry with a 42.1% margin of safety. 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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