43.99 USD
+0.21 (+0.48%)
44 USD
+0.01 (+0.02%)
FARO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. The financial health of FARO is average, but there are quite some concerns on its profitability. FARO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FARO had positive earnings in the past year.
FARO had a positive operating cash flow in the past year.
In the past 5 years FARO reported 4 times negative net income.
In multiple years FARO reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of FARO (-0.18%) is comparable to the rest of the industry.
The Return On Equity of FARO (-0.34%) is comparable to the rest of the industry.
FARO has a Return On Invested Capital (3.24%) which is comparable to the rest of the industry.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Operating Margin, with a value of 4.62%, FARO is in the better half of 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.
FARO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FARO 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.
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.
Looking at the Debt to FCF ratio, with a value of 4.44, FARO is in the better half of the industry, outperforming 64.80% of the companies in the same industry.
FARO has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.27, FARO perfoms like the industry average, outperforming 40.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.34
WACC9.53%
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.
The Current ratio of FARO (2.31) is comparable to the rest of the industry.
A Quick Ratio of 2.01 indicates that FARO has no problem at all paying its short term obligations.
FARO has a Quick ratio (2.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 269.70% over the past year.
The Earnings Per Share has been growing by 21.51% on average over the past years. This is a very strong growth
The Revenue has decreased by -4.76% in the past year.
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
FARO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.45% yearly.
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
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 36.06, which means the current valuation is very expensive for FARO.
FARO's Price/Earnings is on the same level as the industry average.
FARO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.15.
With a Price/Forward Earnings ratio of 26.38, FARO can be considered very expensive at the moment.
FARO's Price/Forward Earnings is on the same level as the industry average.
FARO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 26.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FARO.
FARO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.6 | ||
| EV/EBITDA | 25.17 |
4.3 Compensation for Growth
FARO's 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
5. Dividend
5.1 Amount
No dividends for FARO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
43.99
+0.21 (+0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.69%
Inst Owner Change-97.65%
Ins Owners2.63%
Ins Owner Change-175.63%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 FAQ
What is the ChartMill fundamental rating of FARO TECHNOLOGIES INC (FARO) stock?
ChartMill assigns a fundamental rating of 4 / 10 to FARO.
Can you provide the valuation status for FARO TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 4 / 10 to FARO TECHNOLOGIES INC (FARO). This can be considered as Fairly Valued.
How profitable is FARO TECHNOLOGIES INC (FARO) stock?
FARO TECHNOLOGIES INC (FARO) has a profitability rating of 3 / 10.
What are the PE and PB ratios of FARO TECHNOLOGIES INC (FARO) stock?
The Price/Earnings (PE) ratio for FARO TECHNOLOGIES INC (FARO) is 36.06 and the Price/Book (PB) ratio is 3.27.
Can you provide the financial health for FARO stock?
The financial health rating of FARO TECHNOLOGIES INC (FARO) is 6 / 10.