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. 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.
FORM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FORM has a Return On Assets of 4.69%. This is in the better half of the industry: FORM outperforms 62.73% of its industry peers.
FORM has a Return On Equity (5.62%) which is in line with its industry peers.
With a Return On Invested Capital value of 4.05%, FORM perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FORM is significantly below the industry average of 11.17%.
| 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
FORM has a Profit Margin (7.08%) 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 6.06%. This is comparable to the rest of the industry: FORM outperforms 57.27% of its industry peers.
FORM's Operating Margin has declined in the last couple of years.
FORM has a Gross Margin (40.42%) which is comparable to the rest of the 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FORM is destroying value.
The number of shares outstanding for FORM has been reduced compared to 1 year ago.
Compared to 5 years ago, FORM has more shares outstanding
FORM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.87 indicates that FORM is not in any danger for bankruptcy at the moment.
FORM's Altman-Z score of 8.87 is fine compared to the rest of the industry. FORM outperforms 77.27% of its industry peers.
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.
FORM's Debt to FCF ratio of 0.20 is amongst the best of the industry. FORM outperforms 82.73% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that FORM is not too dependend on debt financing.
FORM's Debt to Equity ratio of 0.01 is fine compared to the rest 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 | 8.87 |
ROIC/WACC0.35
WACC11.48%
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.
Looking at the Quick ratio, with a value of 3.56, 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 | 4.44 | ||
| Quick Ratio | 3.56 |
3. Growth
3.1 Past
FORM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.16%, which is quite impressive.
FORM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.03% yearly.
Looking at the last year, FORM shows a quite strong growth in Revenue. The Revenue has grown by 15.33% in the last year.
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
FORM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.99% yearly.
Based on estimates for the next years, FORM will show a small growth in Revenue. The Revenue will grow by 4.79% on average per year.
EPS Next Y10.11%
EPS Next 2Y17.35%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue Next Year0.07%
Revenue Next 2Y3.55%
Revenue Next 3Y4.79%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.31, the valuation of FORM can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FORM indicates a somewhat cheap valuation: FORM is cheaper than 63.64% of the companies listed in the same industry.
FORM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.18 indicates a rather expensive valuation of FORM.
Based on the Price/Forward Earnings ratio, FORM is valued a bit cheaper than 66.36% 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 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
FORM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FORM is valued a bit cheaper than the industry average as 64.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.31 | ||
| EV/EBITDA | 23.87 |
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)2.5
PEG (5Y)12.46
EPS Next 2Y17.35%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
FORM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.37
-0.41 (-1.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.12%
Inst Owner Change0.63%
Ins Owners0.84%
Ins Owner Change2.46%
Market Cap2.34B
Analysts75
Price Target40.91 (34.71%)
Short Float %4.4%
Short Ratio3.67
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)-5%
PT rev (3m)-26.18%
EPS NQ rev (1m)4.06%
EPS NQ rev (3m)4.06%
EPS NY rev (1m)-6.21%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)1.77%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)-2.02%
Revenue NY rev (3m)-8.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 19.18 | ||
| P/S | 3.06 | ||
| P/FCF | 36.31 | ||
| P/OCF | 21.66 | ||
| P/B | 2.42 | ||
| P/tB | 3.09 | ||
| EV/EBITDA | 23.87 |
EPS(TTM)1.2
EY3.95%
EPS(NY)1.58
Fwd EY5.21%
FCF(TTM)0.84
FCFY2.75%
OCF(TTM)1.4
OCFY4.62%
SpS9.94
BVpS12.53
TBVpS9.81
PEG (NY)2.5
PEG (5Y)12.46
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 | 250 | ||
| Cash Conversion | 134.51% | ||
| Profit Quality | 118.89% | ||
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.56 | ||
| Altman-Z | 8.87 |
F-Score7
WACC11.48%
ROIC/WACC0.35
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 5YN/A
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 5YN/A
EBIT growth 1Y309.16%
EBIT growth 3Y-24.35%
EBIT growth 5Y-2.32%
EBIT Next Year39.56%
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%