FORMFACTOR INC (FORM) Stock Fundamental Analysis
USA - NASDAQ:FORM - US3463751087 - Common Stock
52.25 USD
-1.97 (-3.63%)
52.5 USD
+0.25 (+0.48%)
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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. FORM is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years FORM has been profitable.
FORM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FORM has a Return On Assets of 3.40%. This is comparable to the rest of the industry: FORM outperforms 59.82% of its industry peers.
FORM has a Return On Equity (4.05%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 3.56%, FORM is in line with its industry, outperforming 58.93% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FORM is significantly below the industry average of 11.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 4.05% | ||
| ROIC | 3.56% |
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 (5.38%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FORM has grown nicely.
Looking at the Operating Margin, with a value of 5.58%, FORM is in line with its industry, outperforming 55.36% of the companies in the same industry.
In the last couple of years the Operating Margin of FORM has declined.
With a Gross Margin value of 38.41%, FORM is not doing good in the industry: 61.61% of the companies in the same industry are doing better.
FORM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.58% | ||
| PM (TTM) | 5.38% | ||
| GM | 38.41% |
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.
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 13.85 indicates that FORM is not in any danger for bankruptcy at the moment.
FORM has a Altman-Z score of 13.85. This is amongst the best in the industry. FORM outperforms 81.25% of its industry peers.
The Debt to FCF ratio of FORM is 2.34, which is a good value as it means it would take FORM, 2.34 years of fcf income to pay off all of its debts.
FORM has a Debt to FCF ratio of 2.34. This is in the better half of the industry: FORM outperforms 67.86% 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.
The Debt to Equity ratio of FORM (0.01) is better than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 13.85 |
ROIC/WACC0.3
WACC11.78%
2.3 Liquidity
A Current Ratio of 4.30 indicates that FORM has no problem at all paying its short term obligations.
The Current ratio of FORM (4.30) is better than 66.07% of its industry peers.
A Quick Ratio of 3.46 indicates that FORM has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.46, FORM is doing good in the industry, outperforming 66.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.3 | ||
| Quick Ratio | 3.46 |
3. Growth
3.1 Past
FORM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.85%.
The Earnings Per Share has been growing slightly by 2.03% on average over the past years.
FORM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.29%.
Measured over the past years, FORM shows a small growth in Revenue. The Revenue has been growing by 5.31% on average per year.
EPS 1Y (TTM)1.85%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%-5.71%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%-2.52%
3.2 Future
The Earnings Per Share is expected to grow by 18.19% on average over the next years. This is quite good.
FORM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
EPS Next Y4.75%
EPS Next 2Y18%
EPS Next 3Y12.02%
EPS Next 5Y18.19%
Revenue Next Year1.8%
Revenue Next 2Y5.94%
Revenue Next 3Y4.3%
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
A Price/Earnings ratio of 47.50 indicates a quite expensive valuation of FORM.
Compared to the rest of the industry, the Price/Earnings ratio of FORM indicates a somewhat cheap valuation: FORM is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, FORM is valued quite expensively.
With a Price/Forward Earnings ratio of 32.63, FORM can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as FORM.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, FORM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.5 | ||
| Fwd PE | 32.63 |
4.2 Price Multiples
FORM's Enterprise Value to EBITDA ratio is in line with the industry average.
FORM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 756.19 | ||
| EV/EBITDA | 45.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FORM does not grow enough to justify the current Price/Earnings ratio.
FORM's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)10
PEG (5Y)23.39
EPS Next 2Y18%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
FORM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.25
-1.97 (-3.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.2%
Inst Owner Change-1.9%
Ins Owners0.88%
Ins Owner Change6.3%
Market Cap4.03B
Revenue(TTM)759.31M
Net Income(TTM)40.85M
Analysts76
Price Target36.59 (-29.97%)
Short Float %3.51%
Short Ratio3.04
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)9.03%
Min EPS beat(2)-11.93%
Max EPS beat(2)29.99%
EPS beat(4)2
Avg EPS beat(4)7.02%
Min EPS beat(4)-11.93%
Max EPS beat(4)29.99%
EPS beat(8)4
Avg EPS beat(8)3.81%
EPS beat(12)8
Avg EPS beat(12)10.7%
EPS beat(16)12
Avg EPS beat(16)10.73%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.65%
Max Revenue beat(2)0.94%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)0.94%
Revenue beat(8)3
Avg Revenue beat(8)-0.35%
Revenue beat(12)6
Avg Revenue beat(12)-0.12%
Revenue beat(16)7
Avg Revenue beat(16)-0.33%
PT rev (1m)8.3%
PT rev (3m)5.51%
EPS NQ rev (1m)15.52%
EPS NQ rev (3m)-8.3%
EPS NY rev (1m)12.37%
EPS NY rev (3m)-4.87%
Revenue NQ rev (1m)4.75%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.5 | ||
| Fwd PE | 32.63 | ||
| P/S | 5.31 | ||
| P/FCF | 756.19 | ||
| P/OCF | 38.25 | ||
| P/B | 3.99 | ||
| P/tB | 5.03 | ||
| EV/EBITDA | 45.46 |
EPS(TTM)1.1
EY2.11%
EPS(NY)1.6
Fwd EY3.06%
FCF(TTM)0.07
FCFY0.13%
OCF(TTM)1.37
OCFY2.61%
SpS9.85
BVpS13.09
TBVpS10.38
PEG (NY)10
PEG (5Y)23.39
Graham Number18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 4.05% | ||
| ROCE | 3.95% | ||
| ROIC | 3.56% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 6.38% | ||
| OM | 5.58% | ||
| PM (TTM) | 5.38% | ||
| GM | 38.41% | ||
| FCFM | 0.7% |
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%
ROICexgc growth 3Y-30.39%
ROICexgc 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-Score5
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | 0.14 | ||
| Cap/Depr | 270.68% | ||
| Cap/Sales | 13.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.76% | ||
| Profit Quality | 13.04% | ||
| Current Ratio | 4.3 | ||
| Quick Ratio | 3.46 | ||
| Altman-Z | 13.85 |
F-Score5
WACC11.78%
ROIC/WACC0.3
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)1.85%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%-5.71%
EPS Next Y4.75%
EPS Next 2Y18%
EPS Next 3Y12.02%
EPS Next 5Y18.19%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%-2.52%
Revenue Next Year1.8%
Revenue Next 2Y5.94%
Revenue Next 3Y4.3%
Revenue Next 5Y7.45%
EBIT growth 1Y-5.09%
EBIT growth 3Y-24.35%
EBIT growth 5Y-2.32%
EBIT Next Year24.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y40.21%
FCF growth 3Y2.76%
FCF growth 5Y-4.62%
OCF growth 1Y38.24%
OCF growth 3Y-5.53%
OCF growth 5Y-0.58%
FORMFACTOR INC / FORM FAQ
What is the fundamental rating for FORM stock?
ChartMill assigns a fundamental rating of 5 / 10 to FORM.
What is the valuation status of FORMFACTOR INC (FORM) stock?
ChartMill assigns a valuation rating of 2 / 10 to FORMFACTOR INC (FORM). This can be considered as Overvalued.
What is the profitability of FORM stock?
FORMFACTOR INC (FORM) has a profitability rating of 4 / 10.
What is the financial health of FORMFACTOR INC (FORM) stock?
The financial health rating of FORMFACTOR INC (FORM) is 7 / 10.