FARO TECHNOLOGIES INC (FARO)
US3116421021 - Common Stock
Taking everything into account, FARO scores 2 out of 10 in our fundamental rating. FARO was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. FARO has a bad profitability rating. Also its financial health evaluation is rather negative. FARO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FARO has reported negative net income.
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
Looking at the Return On Assets, with a value of -11.22%, FARO is doing worse than 69.60% of the companies in the same industry.
FARO has a worse Return On Equity (-21.08%) than 66.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.22% | ||
| ROE | -21.08% | ||
| ROIC | N/A |
ROA(3y)-8.4%
ROA(5y)-7.57%
ROE(3y)-13.98%
ROE(5y)-12.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
FARO has a better Gross Margin (45.98%) than 80.80% of its industry peers.
FARO's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for FARO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 45.98% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.38%
GM growth 5Y-3.49%
2. Health
2.1 Basic Checks
FARO does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for FARO has been increased 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
FARO has an Altman-Z score of 1.70. This is a bad value and indicates that FARO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.70, FARO is doing worse than 65.60% 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 (0.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACCN/A
WACC9.08%
2.3 Liquidity
A Current Ratio of 2.31 indicates that FARO has no problem at all paying its short term obligations.
The Current ratio of FARO (2.31) is comparable to the rest of the industry.
FARO has a Quick Ratio of 2.00. This indicates that FARO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of FARO (2.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
FARO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -158.33%.
Looking at the last year, FARO shows a small growth in Revenue. The Revenue has grown by 3.77% in the last year.
The Revenue has been decreasing by -2.32% on average over the past years.
EPS 1Y (TTM)-158.33%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-5.26%
Revenue 1Y (TTM)3.77%
Revenue growth 3Y5.71%
Revenue growth 5Y-2.32%
Revenue growth Q2Q-4.87%
3.2 Future
FARO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 210.06% yearly.
The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y493.43%
EPS Next 2Y210.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.27%
Revenue Next 2Y4%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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 negative for FARO. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 32.97, 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 expensively when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 32.97 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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 210.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y210.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FARO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FARO TECHNOLOGIES INC
NASDAQ:FARO (5/3/2024, 7:00:02 PM)
After market: 18.16 0 (0%)18.16
-0.19 (-1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap348.85M
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 | N/A | ||
| Fwd PE | 32.97 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.22% | ||
| ROE | -21.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 45.98% | ||
| 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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.31 | ||
| Quick Ratio | 2 | ||
| 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)
Growth
EPS 1Y (TTM)-158.33%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y493.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.77%
Revenue growth 3Y5.71%
Revenue growth 5Y
Revenue growth 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