FORMFACTOR INC (FORM)
US3463751087 - Common Stock
FORM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. While FORM has a great health rating, its profitability is only average at the moment. FORM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
FORM had positive earnings in the past year.
In the past year FORM had a positive cash flow from operations.
Each year in the past 5 years FORM has been profitable.
FORM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.18%, FORM is doing good in the industry, outperforming 71.03% of the companies in the same industry.
FORM's Return On Equity of 11.13% is fine compared to the rest of the industry. FORM outperforms 67.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.23%, FORM is in line with its industry, outperforming 46.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FORM is below the industry average of 10.93%.
The 3 year average ROIC (6.33%) for FORM is well above the current ROIC(1.23%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.18% | ||
| ROE | 11.13% | ||
| ROIC | 1.23% |
ROA(3y)6.9%
ROA(5y)6.7%
ROE(3y)8.54%
ROE(5y)8.46%
ROIC(3y)6.33%
ROIC(5y)6.94%
1.3 Margins
FORM's Profit Margin of 15.48% is fine compared to the rest of the industry. FORM outperforms 72.90% of its industry peers.
FORM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.03%, FORM is in line with its industry, outperforming 45.79% of the companies in the same industry.
FORM's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 39.22%, FORM is not doing good in the industry: 62.62% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of FORM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.03% | ||
| PM (TTM) | 15.48% | ||
| GM | 39.22% |
OM growth 3Y-47.43%
OM growth 5Y-23.85%
PM growth 3Y3.16%
PM growth 5Y-8.75%
GM growth 3Y-2.01%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FORM is destroying value.
The number of shares outstanding for FORM has been increased compared to 1 year ago.
Compared to 5 years ago, FORM has more shares outstanding
The debt/assets ratio for FORM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 14.67 indicates that FORM is not in any danger for bankruptcy at the moment.
FORM has a better Altman-Z score (14.67) than 85.98% of its industry peers.
The Debt to FCF ratio of FORM is 0.40, which is an excellent value as it means it would take FORM, only 0.40 years of fcf income to pay off all of its debts.
FORM's Debt to FCF ratio of 0.40 is fine compared to the rest of the industry. FORM outperforms 78.50% of its industry peers.
FORM has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
FORM has a Debt to Equity ratio of 0.01. This is in the better half of the industry: FORM outperforms 67.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 14.67 |
ROIC/WACC0.1
WACC12.54%
2.3 Liquidity
A Current Ratio of 4.51 indicates that FORM has no problem at all paying its short term obligations.
FORM has a better Current ratio (4.51) than 69.16% of its industry peers.
FORM has a Quick Ratio of 3.67. This indicates that FORM is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.67, FORM is doing good in the industry, outperforming 68.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.51 | ||
| Quick Ratio | 3.67 |
3. Growth
3.1 Past
FORM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.68%.
FORM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.55% yearly.
The Revenue has decreased by -7.49% in the past year.
The Revenue has been growing slightly by 4.59% on average over the past years.
EPS 1Y (TTM)-18.68%
EPS 3Y-21.53%
EPS 5Y-6.55%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-7.49%
Revenue growth 3Y-1.49%
Revenue growth 5Y4.59%
Sales Q2Q%0.76%
3.2 Future
FORM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.80% yearly.
The Revenue is expected to grow by 11.20% on average over the next years. This is quite good.
EPS Next Y58.99%
EPS Next 2Y54.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.96%
Revenue Next 2Y11.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 73.95, which means the current valuation is very expensive for FORM.
The rest of the industry has a similar Price/Earnings ratio as FORM.
The average S&P500 Price/Earnings ratio is at 28.05. FORM is valued rather expensively when compared to this.
FORM is valuated quite expensively with a Price/Forward Earnings ratio of 31.72.
The rest of the industry has a similar Price/Forward Earnings ratio as FORM.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.07, FORM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.95 | ||
| Fwd PE | 31.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FORM is on the same level as its industry peers.
FORM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 118.78 | ||
| EV/EBITDA | 76.57 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as FORM's earnings are expected to grow with 54.80% in the coming years.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y54.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FORM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FORMFACTOR INC
NASDAQ:FORM (5/31/2024, 7:00:00 PM)
After market: 55 +0.28 (+0.51%)54.72
-2.24 (-3.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.95 | ||
| Fwd PE | 31.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.18% | ||
| ROE | 11.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.03% | ||
| PM (TTM) | 15.48% | ||
| GM | 39.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.51 | ||
| Quick Ratio | 3.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-18.68%
EPS 3Y-21.53%
EPS 5Y
EPS Q2Q%
EPS Next Y58.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.49%
Revenue growth 3Y-1.49%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y