FORMFACTOR INC (FORM) Stock Fundamental Analysis
NASDAQ:FORM - Nasdaq - US3463751087 - Common Stock - Currency: USD
Taking everything into account, FORM scores 5 out of 10 in our fundamental rating. FORM was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While FORM has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, FORM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year FORM was profitable.
FORM had a positive operating cash flow in the past year.
In the past 5 years FORM has always been profitable.
FORM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.69%, FORM is doing good in the industry, outperforming 61.82% of the companies in the same industry.
FORM has a Return On Equity (5.62%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.05%, FORM is in line with its industry, outperforming 58.18% of the companies in the same industry.
FORM had an Average Return On Invested Capital over the past 3 years of 4.12%. This is significantly below the industry average of 10.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 5.62% | ||
| ROIC | 4.05% |
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 (7.08%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FORM has grown nicely.
The Operating Margin of FORM (6.06%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FORM has declined.
The Gross Margin of FORM (40.42%) is worse than 60.91% of its industry peers.
FORM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.06% | ||
| PM (TTM) | 7.08% | ||
| GM | 40.42% |
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
FORM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FORM has less shares outstanding
Compared to 5 years ago, FORM has more shares outstanding
The debt/assets ratio for FORM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.74 indicates that FORM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.74, FORM is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
FORM has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
The Debt to FCF ratio of FORM (0.20) is better than 81.82% of its industry peers.
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 Debt to Equity ratio of 0.01. This is in the better half of the industry: FORM outperforms 66.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 9.74 |
ROIC/WACC0.36
WACC11.18%
2.3 Liquidity
FORM has a Current Ratio of 4.44. This indicates that FORM is financially healthy and has no problem in meeting its short term obligations.
FORM's Current ratio of 4.44 is fine compared to the rest of the industry. FORM outperforms 64.55% of its industry peers.
A Quick Ratio of 3.56 indicates that FORM has no problem at all paying its short term obligations.
FORM's Quick ratio of 3.56 is fine compared to the rest of the industry. FORM outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.16% over the past year.
Measured over the past 5 years, FORM shows a small growth in Earnings Per Share. The EPS has been growing by 2.03% on average per year.
The Revenue has grown by 15.33% 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)62.16%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%27.78%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%1.56%
3.2 Future
The Earnings Per Share is expected to grow by 18.19% on average over the next years. This is quite good.
Based on estimates for the next years, FORM will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
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.
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
With a Price/Earnings ratio of 28.63, FORM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of FORM indicates a somewhat cheap valuation: FORM is cheaper than 65.45% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. FORM is around the same levels.
FORM is valuated rather expensively with a Price/Forward Earnings ratio of 21.69.
Based on the Price/Forward Earnings ratio, FORM is valued a bit cheaper than 61.82% of the companies in the same industry.
FORM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.63 | ||
| Fwd PE | 21.69 |
4.2 Price Multiples
FORM's Enterprise Value to EBITDA ratio is in line with the industry average.
65.45% of the companies in the same industry are more expensive than FORM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.06 | ||
| EV/EBITDA | 27.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FORM's earnings are expected to grow with 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.83
PEG (5Y)14.09
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 |
34.35
-0.75 (-2.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.12%
Inst Owner Change0.65%
Ins Owners0.84%
Ins Owner Change2.21%
Market Cap2.65B
Analysts75
Price Target39.78 (15.81%)
Short Float %4.6%
Short Ratio4.03
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)5.01%
Min EPS beat(2)-9.04%
Max EPS beat(2)19.06%
EPS beat(4)3
Avg EPS beat(4)7.42%
Min EPS beat(4)-9.04%
Max EPS beat(4)19.06%
EPS beat(8)5
Avg EPS beat(8)4.66%
EPS beat(12)9
Avg EPS beat(12)10.55%
EPS beat(16)13
Avg EPS beat(16)10.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-1.17%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)1.78%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.53%
Revenue beat(16)6
Avg Revenue beat(16)-0.47%
PT rev (1m)-2.77%
PT rev (3m)-8.36%
EPS NQ rev (1m)-2.54%
EPS NQ rev (3m)2.58%
EPS NY rev (1m)-6.21%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.63 | ||
| Fwd PE | 21.69 | ||
| P/S | 3.46 | ||
| P/FCF | 41.06 | ||
| P/OCF | 24.5 | ||
| P/B | 2.74 | ||
| P/tB | 3.5 | ||
| EV/EBITDA | 27.29 |
EPS(TTM)1.2
EY3.49%
EPS(NY)1.58
Fwd EY4.61%
FCF(TTM)0.84
FCFY2.44%
OCF(TTM)1.4
OCFY4.08%
SpS9.94
BVpS12.53
TBVpS9.81
PEG (NY)2.83
PEG (5Y)14.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 5.62% | ||
| ROCE | 4.5% | ||
| ROIC | 4.05% | ||
| ROICexc | 5.7% | ||
| ROICexgc | 7.98% | ||
| OM | 6.06% | ||
| PM (TTM) | 7.08% | ||
| GM | 40.42% | ||
| FCFM | 8.41% |
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-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.2 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 128.57% | ||
| Cap/Sales | 5.69% | ||
| Interest Coverage | 121.24 | ||
| Cash Conversion | 134.51% | ||
| Profit Quality | 118.89% | ||
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.56 | ||
| Altman-Z | 9.74 |
F-Score7
WACC11.18%
ROIC/WACC0.36
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)62.16%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%27.78%
EPS Next Y10.11%
EPS Next 2Y17.35%
EPS Next 3Y13.99%
EPS Next 5Y18.19%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%1.56%
Revenue Next Year0.07%
Revenue Next 2Y3.55%
Revenue Next 3Y4.79%
Revenue Next 5Y7.45%
EBIT growth 1Y309.16%
EBIT growth 3Y-24.35%
EBIT growth 5Y-2.32%
EBIT Next Year28.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y111.4%
FCF growth 3Y2.76%
FCF growth 5Y-4.62%
OCF growth 1Y8.17%
OCF growth 3Y-5.53%
OCF growth 5Y-0.58%