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 has an excellent financial health rating, but there are some minor concerns on its profitability. FORM has a decent growth rate and is not valued too expensively.
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.
FORM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.69%, FORM is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
FORM has a Return On Equity of 5.62%. This is comparable to the rest of the industry: FORM outperforms 60.00% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for FORM is significantly below the industry average of 10.58%.
| 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.
FORM's Profit Margin has improved in the last couple of years.
FORM has a Operating Margin of 6.06%. This is comparable to the rest of the industry: FORM outperforms 55.45% of its industry peers.
In the last couple of years the Operating Margin of FORM has declined.
With a Gross Margin value of 40.42%, FORM is not doing good in the industry: 60.91% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FORM is destroying value.
FORM has less shares outstanding than it did 1 year ago.
FORM has more shares outstanding than it did 5 years ago.
FORM has a better debt/assets ratio than last year.
2.2 Solvency
FORM has an Altman-Z score of 10.22. This indicates that FORM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.22, FORM is in the better half of the industry, outperforming 77.27% 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.
FORM has a Debt to FCF ratio of 0.20. This is amongst the best in the industry. FORM outperforms 81.82% 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 | 10.22 |
ROIC/WACC0.35
WACC11.6%
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 has a better Current ratio (4.44) than 64.55% of its industry peers.
FORM has a Quick Ratio of 3.56. This indicates that FORM is financially healthy and has no problem in meeting its short term obligations.
FORM has a better Quick ratio (3.56) than 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.
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 15.33% 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)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 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 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.
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 29.98, FORM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, FORM is valued a bit cheaper than 66.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. FORM is around the same levels.
With a Price/Forward Earnings ratio of 22.71, FORM is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FORM indicates a somewhat cheap valuation: FORM is cheaper than 66.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, FORM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.98 | ||
| Fwd PE | 22.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FORM indicates a somewhat cheap valuation: FORM is cheaper than 60.91% of the companies listed in the same industry.
66.36% 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 | 43 | ||
| EV/EBITDA | 29.16 |
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)2.96
PEG (5Y)14.76
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 |
35.97
-0.33 (-0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.61%
Inst Owner Change0%
Ins Owners0.9%
Ins Owner Change2.23%
Market Cap2.77B
Analysts74.67
Price Target38.12 (5.98%)
Short Float %4.46%
Short Ratio4.59
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)-6.82%
PT rev (3m)-11.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.98 | ||
| Fwd PE | 22.71 | ||
| P/S | 3.62 | ||
| P/FCF | 43 | ||
| P/OCF | 25.66 | ||
| P/B | 2.87 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 29.16 |
EPS(TTM)1.2
EY3.34%
EPS(NY)1.58
Fwd EY4.4%
FCF(TTM)0.84
FCFY2.33%
OCF(TTM)1.4
OCFY3.9%
SpS9.94
BVpS12.53
TBVpS9.81
PEG (NY)2.96
PEG (5Y)14.76
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 | 10.22 |
F-Score7
WACC11.6%
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 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%