FARO TECHNOLOGIES INC (FARO) Stock Fundamental Analysis
NASDAQ:FARO - Nasdaq - US3116421021 - Common Stock - Currency: USD
Taking everything into account, FARO scores 4 out of 10 in our fundamental rating. FARO was compared to 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 decent growth rate and is not valued too expensively.
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.
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 (-1.88%) which is comparable to the rest of the industry.
The Return On Equity of FARO (-3.63%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 1.39%, FARO is in line with its industry, outperforming 52.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.88% | ||
| ROE | -3.63% | ||
| ROIC | 1.39% |
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
FARO has a Operating Margin (1.90%) which is in line with its industry peers.
FARO's Gross Margin of 54.65% is amongst the best of the industry. FARO outperforms 90.40% of its industry peers.
FARO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.9% | ||
| PM (TTM) | N/A | ||
| GM | 54.65% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FARO is destroying value.
The number of shares outstanding for FARO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FARO has more shares outstanding
The debt/assets ratio for FARO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.13 indicates that FARO is not in any danger for bankruptcy at the moment.
The Altman-Z score of FARO (3.13) is comparable to the rest of the industry.
The Debt to FCF ratio of FARO is 4.03, which is a neutral value as it means it would take FARO, 4.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FARO (4.03) is better than 64.80% of its industry peers.
FARO has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FARO (0.28) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.15
WACC9.15%
2.3 Liquidity
A Current Ratio of 2.20 indicates that FARO has no problem at all paying its short term obligations.
FARO has a Current ratio (2.20) which is comparable to the rest of the industry.
FARO has a Quick Ratio of 1.91. This is a normal value and indicates that FARO is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.91, FARO perfoms like the industry average, outperforming 58.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
FARO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 269.70%, which is quite impressive.
The Earnings Per Share has been growing by 21.51% on average over the past years. This is a very strong growth
FARO shows a decrease in Revenue. In the last year, the revenue decreased by -4.57%.
The Revenue has been decreasing by -2.15% on average over the past years.
EPS 1Y (TTM)269.7%
EPS 3Y20.51%
EPS 5Y21.51%
EPS Q2Q%266.67%
Revenue 1Y (TTM)-4.57%
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.
FARO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
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
Based on the Price/Earnings ratio of 34.67, the valuation of FARO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as FARO.
FARO is valuated rather expensively when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.36, which means the current valuation is very expensive for FARO.
FARO's Price/Forward Earnings ratio is in line with the industry average.
FARO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.67 | ||
| Fwd PE | 25.36 |
4.2 Price Multiples
FARO's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as FARO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.67 | ||
| EV/EBITDA | 34.83 |
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.
A more expensive valuation may be justified as FARO's earnings are expected to grow with 30.45% in the coming years.
PEG (NY)0.74
PEG (5Y)1.61
EPS Next 2Y30.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FARO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.3
-0.03 (-0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners101.17%
Inst Owner Change-0.2%
Ins Owners2.74%
Ins Owner Change5.48%
Market Cap813.43M
Analysts82.5
Price Target42.33 (0.07%)
Short Float %5.9%
Short Ratio1.79
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)293.42%
Min EPS beat(2)22.7%
Max EPS beat(2)564.14%
EPS beat(4)4
Avg EPS beat(4)606.82%
Min EPS beat(4)22.7%
Max EPS beat(4)1664.71%
EPS beat(8)7
Avg EPS beat(8)310.48%
EPS beat(12)10
Avg EPS beat(12)186.18%
EPS beat(16)11
Avg EPS beat(16)122.97%
Revenue beat(2)2
Avg Revenue beat(2)1.62%
Min Revenue beat(2)0.74%
Max Revenue beat(2)2.5%
Revenue beat(4)3
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)2.5%
Revenue beat(8)6
Avg Revenue beat(8)1.54%
Revenue beat(12)6
Avg Revenue beat(12)-0.14%
Revenue beat(16)6
Avg Revenue beat(16)-1.03%
PT rev (1m)7.79%
PT rev (3m)23.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)73.91%
EPS NY rev (1m)19.49%
EPS NY rev (3m)40.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.67 | ||
| Fwd PE | 25.36 | ||
| P/S | 2.38 | ||
| P/FCF | 46.67 | ||
| P/OCF | 26.56 | ||
| P/B | 3.26 | ||
| P/tB | 8.22 | ||
| EV/EBITDA | 34.83 |
EPS(TTM)1.22
EY2.88%
EPS(NY)1.67
Fwd EY3.94%
FCF(TTM)0.91
FCFY2.14%
OCF(TTM)1.59
OCFY3.77%
SpS17.81
BVpS12.98
TBVpS5.14
PEG (NY)0.74
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.88% | ||
| ROE | -3.63% | ||
| ROCE | 1.76% | ||
| ROIC | 1.39% | ||
| ROICexc | 1.9% | ||
| ROICexgc | 4.26% | ||
| OM | 1.9% | ||
| PM (TTM) | N/A | ||
| GM | 54.65% | ||
| FCFM | 5.09% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 4.03 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 83.88% | ||
| Cap/Sales | 3.85% | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | 137.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | 3.13 |
F-Score5
WACC9.15%
ROIC/WACC0.15
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)-4.57%
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 1Y119.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year115.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y234.91%
FCF growth 3YN/A
FCF growth 5Y-5.95%
OCF growth 1Y2749.21%
OCF growth 3YN/A
OCF growth 5Y-1.16%