FORMFACTOR INC (FORM) Stock Fundamental Analysis
USA - NASDAQ:FORM - US3463751087 - Common Stock
30.14 USD
-0.43 (-1.41%)
30.14 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FORM. FORM was compared to 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. FORM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FORM was profitable.
FORM had a positive operating cash flow in the past year.
Each year in the past 5 years FORM has been profitable.
Each year in the past 5 years FORM had a positive operating cash flow.
1.2 Ratios
FORM has a better Return On Assets (3.72%) than 62.50% of its industry peers.
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's Return On Invested Capital of 3.51% is in line compared to the rest of the industry. FORM outperforms 58.93% of its industry peers.
FORM had an Average Return On Invested Capital over the past 3 years of 4.12%. This is significantly below the industry average of 10.87%.
| 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 (5.75%) which is in line with its industry peers.
In the last couple of years the Profit Margin of FORM has grown nicely.
FORM has a Operating Margin of 5.40%. This is comparable to the rest of the industry: FORM outperforms 55.36% of its industry peers.
In the last couple of years the Operating Margin of FORM has declined.
FORM's Gross Margin of 38.68% is on the low side compared to the rest of the industry. FORM is outperformed by 60.71% of its industry peers.
FORM's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for FORM has been reduced compared to 1 year ago.
The number of shares outstanding for FORM has been increased compared to 5 years ago.
FORM has a better debt/assets ratio than last year.
2.2 Solvency
FORM has an Altman-Z score of 8.61. This indicates that FORM is financially healthy and has little risk of bankruptcy at the moment.
FORM's Altman-Z score of 8.61 is fine compared to the rest of the industry. FORM outperforms 71.43% of its industry peers.
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 Debt to Equity ratio of 0.01. This is in the better half 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 | 8.61 |
ROIC/WACC0.31
WACC11.39%
2.3 Liquidity
FORM has a Current Ratio of 4.24. This indicates that FORM is financially healthy and has no problem in meeting its short term obligations.
FORM has a Current ratio of 4.24. This is in the better half 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.
FORM has a better Quick ratio (3.34) than 63.39% of its industry peers.
| 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.
FORM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.03% yearly.
The Revenue has grown by 8.30% in the past year. This is quite good.
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)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
Based on estimates for the next years, FORM will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.19% on average per year.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y-4.82%
EPS Next 2Y10.14%
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
With a Price/Earnings ratio of 26.91, FORM can be considered very expensive at the moment.
75.00% of the companies in the same industry are more expensive than FORM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, FORM is valued at the same level.
FORM is valuated rather expensively with a Price/Forward Earnings ratio of 21.61.
Based on the Price/Forward Earnings ratio, FORM is valued a bit cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, FORM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.91 | ||
| Fwd PE | 21.61 |
4.2 Price Multiples
FORM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FORM is cheaper than 66.07% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FORM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 639.54 | ||
| EV/EBITDA | 24.83 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)13.25
EPS Next 2Y10.14%
EPS Next 3Y6.84%
5. Dividend
5.1 Amount
FORM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.14
-0.43 (-1.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.36%
Inst Owner Change-0.62%
Ins Owners0.89%
Ins Owner Change5.66%
Market Cap2.32B
Analysts72
Price Target33.79 (12.11%)
Short Float %4%
Short Ratio4
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)-2.57%
PT rev (3m)-15.06%
EPS NQ rev (1m)-4.68%
EPS NQ rev (3m)-37.42%
EPS NY rev (1m)-13.56%
EPS NY rev (3m)-13.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.09%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.91 | ||
| Fwd PE | 21.61 | ||
| P/S | 3.04 | ||
| P/FCF | 639.54 | ||
| P/OCF | 22.12 | ||
| P/B | 2.35 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 24.83 |
EPS(TTM)1.12
EY3.72%
EPS(NY)1.4
Fwd EY4.63%
FCF(TTM)0.05
FCFY0.16%
OCF(TTM)1.36
OCFY4.52%
SpS9.92
BVpS12.84
TBVpS10.12
PEG (NY)N/A
PEG (5Y)13.25
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 | 8.61 |
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-4.82%
EPS Next 2Y10.14%
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 Year24.15%
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%