FARO TECHNOLOGIES INC (FARO) Stock Fundamental Analysis
NASDAQ:FARO - Nasdaq - US3116421021 - Common Stock - Currency: USD
Overall FARO gets a fundamental rating of 4 out of 10. We evaluated FARO 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
FARO had positive earnings in the past year.
In the past year FARO had a positive cash flow from operations.
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.
1.2 Ratios
FARO has a Return On Assets (-0.18%) which is in line with its industry peers.
FARO has a Return On Equity (-0.34%) which is in line with its industry peers.
FARO has a Return On Invested Capital of 3.24%. This is comparable to the rest of the industry: FARO outperforms 56.80% of its industry peers.
| 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
The Operating Margin of FARO (4.62%) is better than 63.20% of its industry peers.
FARO's Gross Margin of 56.03% is amongst the best of the industry. FARO outperforms 90.40% of its industry peers.
In the last couple of years the Gross Margin of FARO has remained more or less at the same level.
| 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.
The number of shares outstanding for FARO remains at a similar level compared to 1 year ago.
FARO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FARO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.24 indicates that FARO is not in any danger for bankruptcy at the moment.
FARO has a Altman-Z score of 3.24. This is comparable to the rest of the industry: FARO outperforms 54.40% of its industry peers.
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.
FARO has a Debt to FCF ratio of 4.44. This is in the better half of the industry: FARO outperforms 64.00% of its industry peers.
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 | 3.24 |
ROIC/WACC0.37
WACC8.67%
2.3 Liquidity
A Current Ratio of 2.31 indicates that FARO has no problem at all paying its short term obligations.
FARO has a Current ratio (2.31) which is in line with its industry peers.
A Quick Ratio of 2.01 indicates that FARO has no problem at all paying its short term obligations.
FARO has a Quick ratio of 2.01. This is in the better half of the industry: FARO outperforms 60.80% of its industry peers.
| 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.
FARO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.51% yearly.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 35.84, which means the current valuation is very expensive for FARO.
FARO's Price/Earnings ratio is in line with the industry average.
FARO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.34.
The Price/Forward Earnings ratio is 26.22, which means the current valuation is very expensive for FARO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FARO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.03. FARO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.84 | ||
| Fwd PE | 26.22 |
4.2 Price Multiples
FARO's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FARO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.02 | ||
| EV/EBITDA | 24.88 |
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)1.67
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 |
43.72
-0.06 (-0.14%)
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-0.2%
Ins Owners2.63%
Ins Owner Change5.92%
Market Cap840.74M
Analysts45.71
Price Target44.88 (2.65%)
Short Float %8.4%
Short Ratio1.83
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)6.02%
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)40.23%
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 | 35.84 | ||
| Fwd PE | 26.22 | ||
| P/S | 2.47 | ||
| P/FCF | 53.02 | ||
| P/OCF | 28.91 | ||
| P/B | 3.23 | ||
| P/tB | 7.78 | ||
| EV/EBITDA | 24.88 |
EPS(TTM)1.22
EY2.79%
EPS(NY)1.67
Fwd EY3.81%
FCF(TTM)0.82
FCFY1.89%
OCF(TTM)1.51
OCFY3.46%
SpS17.74
BVpS13.53
TBVpS5.62
PEG (NY)0.77
PEG (5Y)1.67
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
ROICexcg growth 3YN/A
ROICexcg 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 | 3.24 |
F-Score5
WACC8.67%
ROIC/WACC0.37
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%