FORMFACTOR INC (FORM) Stock Fundamental Analysis
NASDAQ:FORM - US3463751087 - Common Stock
29.16 USD
+1.31 (+4.7%)
29.16 USD
0 (0%)
Overall FORM gets a fundamental rating of 5 out of 10. We evaluated FORM against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. FORM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. FORM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FORM was profitable.
In the past year FORM had a positive cash flow from operations.
In the past 5 years FORM has always been profitable.
Each year in the past 5 years FORM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.72%, FORM is in line with its industry, outperforming 60.00% of the companies in the same industry.
FORM's Return On Equity of 4.44% is in line compared to the rest of the industry. FORM outperforms 56.36% of its industry peers.
FORM's Return On Invested Capital of 3.51% is in line compared to the rest of the industry. FORM outperforms 56.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FORM is significantly below the industry average of 10.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 4.44% | ||
| ROIC | 3.51% |
ROA(3y)6.18%
ROA(5y)6.98%
ROE(3y)7.56%
ROE(5y)8.7%
ROIC(3y)4.12%
ROIC(5y)6.44%
1.3 Margins
The Profit Margin of FORM (5.75%) is comparable to the rest of the industry.
FORM's Profit Margin has improved in the last couple of years.
FORM has a Operating Margin (5.40%) which is comparable to the rest of the industry.
FORM's Operating Margin has declined in the last couple of years.
FORM's Gross Margin of 38.68% is on the low side compared to the rest of the industry. FORM is outperformed by 60.91% of its industry peers.
In the last couple of years the Gross Margin of FORM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.4% | ||
| PM (TTM) | 5.75% | ||
| GM | 38.68% |
OM growth 3Y-24.15%
OM growth 5Y-7.25%
PM growth 3Y-5.78%
PM growth 5Y6.46%
GM growth 3Y-1.62%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FORM is destroying value.
FORM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FORM has more shares outstanding
Compared to 1 year ago, FORM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.06 indicates that FORM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 8.06, FORM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Debt to FCF ratio of FORM is 3.51, which is a good value as it means it would take FORM, 3.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FORM (3.51) is comparable to the rest of the industry.
FORM has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
FORM has a better Debt to Equity ratio (0.01) than 66.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 8.06 |
ROIC/WACC0.31
WACC11.43%
2.3 Liquidity
A Current Ratio of 4.24 indicates that FORM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.24, FORM is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
A Quick Ratio of 3.34 indicates that FORM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.34, FORM is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.24 | ||
| Quick Ratio | 3.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.89% over the past year.
The Earnings Per Share has been growing slightly by 2.03% on average over the past years.
The Revenue has grown by 8.30% in the past year. This is quite good.
FORM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.31% yearly.
EPS 1Y (TTM)17.89%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%-22.86%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%-0.85%
3.2 Future
FORM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.19% yearly.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y10.11%
EPS Next 2Y17.35%
EPS Next 3Y13.99%
EPS Next 5Y18.19%
Revenue Next Year0.07%
Revenue Next 2Y3.55%
Revenue Next 3Y4.79%
Revenue Next 5Y7.45%
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
FORM is valuated quite expensively with a Price/Earnings ratio of 26.04.
FORM's Price/Earnings ratio is a bit cheaper when compared to the industry. FORM is cheaper than 71.82% of the companies in the same industry.
FORM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 18.41, the valuation of FORM can be described as rather expensive.
72.73% of the companies in the same industry are more expensive than FORM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.82. FORM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
64.55% of the companies in the same industry are more expensive than FORM, based on the Enterprise Value to EBITDA ratio.
FORM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 618.75 | ||
| EV/EBITDA | 22.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as FORM's earnings are expected to grow with 13.99% in the coming years.
PEG (NY)2.58
PEG (5Y)12.82
EPS Next 2Y17.35%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
No dividends for FORM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.16
+1.31 (+4.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.36%
Inst Owner Change-0.63%
Ins Owners0.89%
Ins Owner Change5.3%
Market Cap2.25B
Analysts74.67
Price Target33.79 (15.88%)
Short Float %3.41%
Short Ratio3.43
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)1
Avg EPS beat(2)3.56%
Min EPS beat(2)-11.93%
Max EPS beat(2)19.06%
EPS beat(4)2
Avg EPS beat(4)2.04%
Min EPS beat(4)-11.93%
Max EPS beat(4)19.06%
EPS beat(8)4
Avg EPS beat(8)3.1%
EPS beat(12)8
Avg EPS beat(12)9.08%
EPS beat(16)12
Avg EPS beat(16)9.46%
Revenue beat(2)1
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0.94%
Revenue beat(4)2
Avg Revenue beat(4)-0.31%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)1.78%
Revenue beat(8)4
Avg Revenue beat(8)-0.18%
Revenue beat(12)6
Avg Revenue beat(12)-0.32%
Revenue beat(16)7
Avg Revenue beat(16)-0.36%
PT rev (1m)-9.03%
PT rev (3m)-15.24%
EPS NQ rev (1m)-23.45%
EPS NQ rev (3m)-34.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.21%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)-4.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 18.41 | ||
| P/S | 2.94 | ||
| P/FCF | 618.75 | ||
| P/OCF | 21.4 | ||
| P/B | 2.27 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 22.53 |
EPS(TTM)1.12
EY3.84%
EPS(NY)1.58
Fwd EY5.43%
FCF(TTM)0.05
FCFY0.16%
OCF(TTM)1.36
OCFY4.67%
SpS9.92
BVpS12.84
TBVpS10.12
PEG (NY)2.58
PEG (5Y)12.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 4.44% | ||
| ROCE | 3.9% | ||
| ROIC | 3.51% | ||
| ROICexc | 4.6% | ||
| ROICexgc | 6.21% | ||
| OM | 5.4% | ||
| PM (TTM) | 5.75% | ||
| GM | 38.68% | ||
| FCFM | 0.48% |
ROA(3y)6.18%
ROA(5y)6.98%
ROE(3y)7.56%
ROE(5y)8.7%
ROIC(3y)4.12%
ROIC(5y)6.44%
ROICexc(3y)5.96%
ROICexc(5y)9.39%
ROICexgc(3y)9.3%
ROICexgc(5y)16.23%
ROCE(3y)4.58%
ROCE(5y)7.16%
ROICexcg growth 3Y-30.39%
ROICexcg growth 5Y-14.73%
ROICexc growth 3Y-26.71%
ROICexc growth 5Y-8.11%
OM growth 3Y-24.15%
OM growth 5Y-7.25%
PM growth 3Y-5.78%
PM growth 5Y6.46%
GM growth 3Y-1.62%
GM growth 5Y0.02%
F-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 286.15% | ||
| Cap/Sales | 13.27% | ||
| Interest Coverage | 109.5 | ||
| Cash Conversion | 136.94% | ||
| Profit Quality | 8.27% | ||
| Current Ratio | 4.24 | ||
| Quick Ratio | 3.34 | ||
| Altman-Z | 8.06 |
F-Score6
WACC11.43%
ROIC/WACC0.31
Cap/Depr(3y)146.08%
Cap/Depr(5y)140.5%
Cap/Sales(3y)7.4%
Cap/Sales(5y)7.78%
Profit Quality(3y)85.07%
Profit Quality(5y)97.31%
High Growth Momentum
Growth
EPS 1Y (TTM)17.89%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%-22.86%
EPS Next Y10.11%
EPS Next 2Y17.35%
EPS Next 3Y13.99%
EPS Next 5Y18.19%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%-0.85%
Revenue Next Year0.07%
Revenue Next 2Y3.55%
Revenue Next 3Y4.79%
Revenue Next 5Y7.45%
EBIT growth 1Y39.88%
EBIT growth 3Y-24.35%
EBIT growth 5Y-2.32%
EBIT Next Year24.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-17.41%
FCF growth 3Y2.76%
FCF growth 5Y-4.62%
OCF growth 1Y31.67%
OCF growth 3Y-5.53%
OCF growth 5Y-0.58%