FORMFACTOR INC (FORM) Stock Fundamental Analysis
USA - NASDAQ:FORM - US3463751087 - Common Stock
39.69 USD
+0.27 (+0.68%)
40.13 USD
+0.44 (+1.11%)
FORM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. FORM has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, FORM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
FORM had positive earnings in the past year.
In the past year FORM had a positive cash flow from operations.
FORM had positive earnings in each of the past 5 years.
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 the better half of the industry, outperforming 62.50% 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 58.93% of its industry peers.
FORM has a Return On Invested Capital (3.51%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FORM is significantly below the industry average of 10.93%.
| 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
FORM has a Profit Margin of 5.75%. This is comparable to the rest of the industry: FORM outperforms 59.82% of its industry peers.
FORM's Profit Margin has improved in the last couple of years.
FORM's Operating Margin of 5.40% is in line compared to the rest of the industry. FORM outperforms 55.36% of its industry peers.
FORM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 38.68%, FORM is doing worse than 61.61% of the companies in the same industry.
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
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
Compared to 1 year ago, FORM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.85 indicates that FORM is not in any danger for bankruptcy at the moment.
FORM's Altman-Z score of 10.85 is fine compared to the rest of the industry. FORM outperforms 73.21% of its industry peers.
FORM has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as FORM would need 3.51 years to pay back of all of its debts.
FORM's Debt to FCF ratio of 3.51 is in line compared to the rest of the industry. FORM outperforms 59.82% 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's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. FORM outperforms 66.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 10.85 |
ROIC/WACC0.31
WACC11.39%
2.3 Liquidity
A Current Ratio of 4.24 indicates that FORM has no problem at all paying its short term obligations.
FORM's Current ratio of 4.24 is fine compared to the rest of the industry. FORM outperforms 64.29% of its industry peers.
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 63.39% 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.
FORM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.30%.
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.
FORM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
EPS Next Y-6.78%
EPS Next 2Y8.79%
EPS Next 3Y6.84%
EPS Next 5Y18.19%
Revenue Next Year0.46%
Revenue Next 2Y3.84%
Revenue Next 3Y7.45%
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
Based on the Price/Earnings ratio of 35.44, the valuation of FORM can be described as expensive.
FORM's Price/Earnings ratio is a bit cheaper when compared to the industry. FORM is cheaper than 67.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. FORM is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 29.16, the valuation of FORM can be described as expensive.
FORM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FORM is cheaper than 63.39% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FORM to the average of the S&P500 Index (23.32), we can say FORM is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 29.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FORM is valued a bit cheaper than the industry average as 61.61% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as FORM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 842.18 | ||
| EV/EBITDA | 34.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)17.45
EPS Next 2Y8.79%
EPS Next 3Y6.84%
5. Dividend
5.1 Amount
FORM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
39.69
+0.27 (+0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.2%
Inst Owner Change-0.63%
Ins Owners0.88%
Ins Owner Change5.66%
Market Cap3.06B
Analysts72
Price Target33.79 (-14.87%)
Short Float %3.98%
Short Ratio3.49
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)0%
PT rev (3m)-11.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.04%
EPS NY rev (1m)-2.06%
EPS NY rev (3m)-15.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 29.16 | ||
| P/S | 4 | ||
| P/FCF | 842.18 | ||
| P/OCF | 29.13 | ||
| P/B | 3.09 | ||
| P/tB | 3.92 | ||
| EV/EBITDA | 34.16 |
EPS(TTM)1.12
EY2.82%
EPS(NY)1.36
Fwd EY3.43%
FCF(TTM)0.05
FCFY0.12%
OCF(TTM)1.36
OCFY3.43%
SpS9.92
BVpS12.84
TBVpS10.12
PEG (NY)N/A
PEG (5Y)17.45
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 | 10.85 |
F-Score6
WACC11.39%
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 Y-6.78%
EPS Next 2Y8.79%
EPS Next 3Y6.84%
EPS Next 5Y18.19%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%-0.85%
Revenue Next Year0.46%
Revenue Next 2Y3.84%
Revenue Next 3Y7.45%
Revenue Next 5Y7.45%
EBIT growth 1Y39.88%
EBIT growth 3Y-24.35%
EBIT growth 5Y-2.32%
EBIT Next Year24.54%
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%