FARO TECHNOLOGIES INC (FARO) Fundamental Analysis & Valuation

NASDAQ:FARO • US3116421021

Current stock price

43.99 USD
+0.21 (+0.48%)
At close:
44 USD
+0.01 (+0.02%)
After Hours:

This FARO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. FARO Profitability Analysis

1.1 Basic Checks

  • FARO had positive earnings in the past year.
  • FARO had a positive operating cash flow in the past year.
  • FARO had negative earnings in 4 of the past 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: FARO reported negative operating cash flow in multiple years.
FARO Yearly Net Income VS EBIT VS OCF VS FCFFARO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M -40M -60M

1.2 Ratios

  • FARO's Return On Assets of -0.18% is in line compared to the rest of the industry. FARO outperforms 51.20% of its industry peers.
  • FARO has a Return On Equity of -0.34%. This is comparable to the rest of the industry: FARO outperforms 52.00% of its industry peers.
  • The Return On Invested Capital of FARO (3.24%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA -0.18%
ROE -0.34%
ROIC 3.24%
ROA(3y)-6.25%
ROA(5y)-5.39%
ROE(3y)-11.1%
ROE(5y)-9.08%
ROIC(3y)N/A
ROIC(5y)N/A
FARO Yearly ROA, ROE, ROICFARO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -5 -10 -15 -20

1.3 Margins

  • With a decent Operating Margin value of 4.62%, FARO is doing good in the industry, outperforming 64.00% of the companies in the same industry.
  • Looking at the Gross Margin, with a value of 56.03%, FARO belongs to the top of the industry, outperforming 90.40% of the companies in the same industry.
  • In the last couple of years the Gross Margin of FARO has remained more or less at the same level.
Industry RankSector Rank
OM 4.62%
PM (TTM) N/A
GM 56.03%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.13%
GM growth 5Y1.05%
FARO Yearly Profit, Operating, Gross MarginsFARO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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5

2. FARO Health Analysis

2.1 Basic Checks

  • FARO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, FARO has about the same amount of shares outstanding.
  • The number of shares outstanding for FARO has been increased compared to 5 years ago.
  • The debt/assets ratio for FARO is higher compared to a year ago.
FARO Yearly Shares OutstandingFARO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
FARO Yearly Total Debt VS Total AssetsFARO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.2 Solvency

  • FARO has an Altman-Z score of 3.26. This indicates that FARO is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.26, FARO is in line with its industry, outperforming 52.00% of the companies in the same industry.
  • FARO has a debt to FCF ratio of 4.44. This is a neutral value as FARO would need 4.44 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 4.44, FARO is doing good in the industry, outperforming 64.80% of the companies in the same industry.
  • A Debt/Equity ratio of 0.27 indicates that FARO is not too dependend on debt financing.
  • FARO has a Debt to Equity ratio of 0.27. This is comparable to the rest of the industry: FARO outperforms 40.80% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.44
Altman-Z 3.26
ROIC/WACC0.34
WACC9.53%
FARO Yearly LT Debt VS Equity VS FCFFARO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

  • FARO has a Current Ratio of 2.31. This indicates that FARO is financially healthy and has no problem in meeting its short term obligations.
  • FARO has a Current ratio (2.31) which is comparable to the rest of the industry.
  • FARO has a Quick Ratio of 2.01. This indicates that FARO is financially healthy and has no problem in meeting its short term obligations.
  • FARO's Quick ratio of 2.01 is in line compared to the rest of the industry. FARO outperforms 60.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.31
Quick Ratio 2.01
FARO Yearly Current Assets VS Current LiabilitesFARO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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5

3. FARO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 269.70% over the past year.
  • FARO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.51% yearly.
  • FARO shows a decrease in Revenue. In the last year, the revenue decreased by -4.76%.
  • FARO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.15% yearly.
EPS 1Y (TTM)269.7%
EPS 3Y20.51%
EPS 5Y21.51%
EPS Q2Q%266.67%
Revenue 1Y (TTM)-4.76%
Revenue growth 3Y0.45%
Revenue growth 5Y-2.15%
Sales Q2Q%-1.64%

3.2 Future

  • Based on estimates for the next years, FARO will show a very strong growth in Earnings Per Share. The EPS will grow by 30.45% on average per year.
  • The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y46.76%
EPS Next 2Y30.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.21%
Revenue Next 2Y3.95%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
FARO Yearly Revenue VS EstimatesFARO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M
FARO Yearly EPS VS EstimatesFARO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 1 1.5

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4

4. FARO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 36.06, which means the current valuation is very expensive for FARO.
  • Compared to the rest of the industry, the Price/Earnings ratio of FARO is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 26.21. FARO is valued slightly more expensive when compared to this.
  • FARO is valuated quite expensively with a Price/Forward Earnings ratio of 26.38.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of FARO is on the same level as its industry peers.
  • FARO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.10.
Industry RankSector Rank
PE 36.06
Fwd PE 26.38
FARO Price Earnings VS Forward Price EarningsFARO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • FARO's Enterprise Value to EBITDA ratio is in line with the industry average.
  • FARO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 53.6
EV/EBITDA 25.17
FARO Per share dataFARO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • FARO's earnings are expected to grow with 30.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)1.68
EPS Next 2Y30.45%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. FARO Dividend Analysis

5.1 Amount

  • FARO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FARO Fundamentals: All Metrics, Ratios and Statistics

FARO TECHNOLOGIES INC

NASDAQ:FARO (7/18/2025, 8:00:02 PM)

After market: 44 +0.01 (+0.02%)

43.99

+0.21 (+0.48%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)04-24
Earnings (Next)08-06
Inst Owners107.69%
Inst Owner Change0%
Ins Owners2.63%
Ins Owner Change0%
Market Cap849.89M
Revenue(TTM)341.05M
Net Income(TTM)-893.00K
Analysts45.71
Price Target44.88 (2.02%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)62.45%
Min EPS beat(2)22.7%
Max EPS beat(2)102.21%
EPS beat(4)4
Avg EPS beat(4)588.44%
Min EPS beat(4)22.7%
Max EPS beat(4)1664.71%
EPS beat(8)8
Avg EPS beat(8)346.58%
EPS beat(12)11
Avg EPS beat(12)237.35%
EPS beat(16)12
Avg EPS beat(16)139.55%
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.74%
Max Revenue beat(2)1.24%
Revenue beat(4)3
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)2.5%
Revenue beat(8)7
Avg Revenue beat(8)1.92%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)7
Avg Revenue beat(16)-0.84%
PT rev (1m)0%
PT rev (3m)14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.51%
EPS NY rev (1m)0%
EPS NY rev (3m)19.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 36.06
Fwd PE 26.38
P/S 2.49
P/FCF 53.6
P/OCF 29.22
P/B 3.27
P/tB 7.87
EV/EBITDA 25.17
EPS(TTM)1.22
EY2.77%
EPS(NY)1.67
Fwd EY3.79%
FCF(TTM)0.82
FCFY1.87%
OCF(TTM)1.51
OCFY3.42%
SpS17.65
BVpS13.47
TBVpS5.59
PEG (NY)0.77
PEG (5Y)1.68
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -0.18%
ROE -0.34%
ROCE 4.1%
ROIC 3.24%
ROICexc 4.42%
ROICexgc 9.6%
OM 4.62%
PM (TTM) N/A
GM 56.03%
FCFM 4.65%
ROA(3y)-6.25%
ROA(5y)-5.39%
ROE(3y)-11.1%
ROE(5y)-9.08%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.13%
GM growth 5Y1.05%
F-Score5
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.44
Debt/EBITDA 2.19
Cap/Depr 81.02%
Cap/Sales 3.88%
Interest Coverage 250
Cash Conversion 90.65%
Profit Quality N/A
Current Ratio 2.31
Quick Ratio 2.01
Altman-Z 3.26
F-Score5
WACC9.53%
ROIC/WACC0.34
Cap/Depr(3y)98.69%
Cap/Depr(5y)85.56%
Cap/Sales(3y)4.22%
Cap/Sales(5y)3.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)269.7%
EPS 3Y20.51%
EPS 5Y21.51%
EPS Q2Q%266.67%
EPS Next Y46.76%
EPS Next 2Y30.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.76%
Revenue growth 3Y0.45%
Revenue growth 5Y-2.15%
Sales Q2Q%-1.64%
Revenue Next Year2.21%
Revenue Next 2Y3.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y162.8%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year115.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y130.75%
FCF growth 3YN/A
FCF growth 5Y-5.95%
OCF growth 1Y180.43%
OCF growth 3YN/A
OCF growth 5Y-1.16%

FARO TECHNOLOGIES INC / FARO Fundamental Analysis FAQ

What is the ChartMill fundamental rating of FARO TECHNOLOGIES INC (FARO) stock?

ChartMill assigns a fundamental rating of 4 / 10 to FARO.


What is the valuation status for FARO stock?

ChartMill assigns a valuation rating of 4 / 10 to FARO TECHNOLOGIES INC (FARO). This can be considered as Fairly Valued.


Can you provide the profitability details for FARO TECHNOLOGIES INC?

FARO TECHNOLOGIES INC (FARO) has a profitability rating of 3 / 10.


Can you provide the PE and PB ratios for FARO stock?

The Price/Earnings (PE) ratio for FARO TECHNOLOGIES INC (FARO) is 36.06 and the Price/Book (PB) ratio is 3.27.