Is Fabrinet (FN) Halal?
Shariah Screening — 5 Standards
Based on financial data from June 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.0% / 30% | 5.3% / 30% | 4.3% / 30% | 1.17% / 5% | ✓ HALAL |
| DJIM | 0.0% / 33% | 5.3% / 33% | 4.3% / 33% | 1.17% / 5% | ✓ HALAL |
| MSCI | 0.2% / 33% | 33.0% / 33% | 26.8% / 33% | 1.17% / 5% | ✓ HALAL |
| S&P | 0.0% / 33% | 5.3% / 33% | 4.3% / 33% | 1.17% / 5% | ✓ HALAL |
| FTSE | 0.2% / 33% | 33.0% / 33% | 26.8% / 50% | 1.17% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 12.0% | |
| Operating Margin | 10.1% | |
| Net Margin | 9.7% | |
| Return on Equity (ROE) | 18.7% | |
| Return on Assets (ROA) | 8.1% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $328M |
| Free Cash Flow | $207M |
| Total Debt | $5M |
| Debt-to-Equity | 0.2 |
| Current Ratio | 2.7 |
| Total Assets | $2.8B |
Price & Trading
| Last Close | $549.70 |
| 50-Day MA | $515.63 |
| 200-Day MA | $412.08 |
| Avg Volume | 680K |
| Beta | 1.0 |
|
52-Week Range
$148.55
| |
About Fabrinet (FN)
Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company's products also comprise transceivers, tunable lasers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. In addition, it provides solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. Further, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components, and substrates; and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company was incorporated in 1999 and is based in George Town, the Cayman Islands.
Purification Calculator
As a halal stock with 1.17% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Fabrinet (FN) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Fabrinet is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Fabrinet's debt ratio?
Fabrinet's debt ratio is 0.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.2%.
Does Fabrinet require dividend purification?
Yes, Fabrinet has an impermissible income ratio of 1.17%, which means 1.17% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Fabrinet's key financial metrics?
Fabrinet has a market capitalization of $19.8B, trailing P/E ratio of 52.9, and revenue of $3.4B. The company maintains a gross margin of 12.0% and a net margin of 9.7%. Return on equity stands at 18.7%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.