FARO TECHNOLOGIES INC (FARO) Stock Fundamental Analysis
NASDAQ:FARO - US3116421021 - Common Stock
43.99 USD
+0.21 (+0.48%)
44 USD
+0.01 (+0.02%)
We assign a fundamental rating of 4 out of 10 to FARO. FARO was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. FARO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
In the past year FARO had a positive cash flow from operations.
In the past 5 years FARO reported 4 times negative net income.
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
With a Return On Assets value of -0.18%, FARO perfoms like the industry average, outperforming 51.20% of the companies in the same industry.
FARO has a Return On Equity (-0.34%) which is comparable to the rest of the industry.
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 64.00% of its industry peers.
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 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
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 3.26 indicates that FARO is not in any danger for bankruptcy at the moment.
FARO's Altman-Z score of 3.26 is in line compared to the rest of the industry. FARO outperforms 52.00% 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's Debt to FCF ratio of 4.44 is fine compared to the rest of the industry. FARO outperforms 64.80% 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.
FARO has a Debt to Equity ratio (0.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.34
WACC9.53%
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 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.
Looking at the Quick ratio, with a value of 2.01, FARO is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 2.01 |
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.
FARO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.51% yearly.
Looking at the last year, FARO shows a decrease in Revenue. The Revenue has decreased by -4.76% in the last 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
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.
Based on estimates for the next years, FARO will show a small growth in Revenue. The Revenue will grow by 3.95% on average per year.
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 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 27.08.
Based on the Price/Forward Earnings ratio of 26.38, the valuation of FARO can be described as expensive.
FARO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, FARO is valued at the same level.
| 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
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
5. Dividend
5.1 Amount
FARO does not give a dividend.
| 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 Change1.4%
Ins Owners2.63%
Ins Owner Change-157.82%
Market Cap849.89M
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
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 | 3.26 |
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%