FORRESTER RESEARCH INC (FORR) Stock Fundamental Analysis
NASDAQ:FORR - Nasdaq - US3465631097 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to FORR. FORR was compared to 82 industry peers in the Professional Services industry. FORR may be in some trouble as it scores bad on both profitability and health. FORR has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year FORR was profitable.
In the past year FORR had a positive cash flow from operations.
FORR had positive earnings in 4 of the past 5 years.
FORR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
FORR has a worse Return On Assets (-19.63%) than 85.37% of its industry peers.
FORR has a worse Return On Equity (-58.57%) than 84.15% of its industry peers.
FORR has a Return On Invested Capital (5.40%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for FORR is significantly below the industry average of 12.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.63% | ||
| ROE | -58.57% | ||
| ROIC | 5.4% |
ROA(3y)0.99%
ROA(5y)1.64%
ROE(3y)2.87%
ROE(5y)5.23%
ROIC(3y)6.15%
ROIC(5y)6.29%
1.3 Margins
Looking at the Operating Margin, with a value of 3.50%, FORR is in line with its industry, outperforming 45.12% of the companies in the same industry.
In the last couple of years the Operating Margin of FORR has grown nicely.
FORR has a better Gross Margin (57.98%) than 69.51% of its industry peers.
In the last couple of years the Gross Margin of FORR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.5% | ||
| PM (TTM) | N/A | ||
| GM | 57.98% |
OM growth 3Y-25.12%
OM growth 5Y14.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.78%
GM growth 5Y0.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FORR is destroying value.
Compared to 1 year ago, FORR has less shares outstanding
FORR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FORR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that FORR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.70, FORR is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
FORR has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.78, FORR is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that FORR is not too dependend on debt financing.
FORR's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. FORR outperforms 58.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.6
WACC9.06%
2.3 Liquidity
A Current Ratio of 0.98 indicates that FORR may have some problems paying its short term obligations.
FORR has a Current ratio of 0.98. This is in the lower half of the industry: FORR underperforms 76.83% of its industry peers.
A Quick Ratio of 0.98 indicates that FORR may have some problems paying its short term obligations.
FORR has a Quick ratio of 0.98. This is in the lower half of the industry: FORR underperforms 76.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for FORR have decreased strongly by -18.64% in the last year.
The Earnings Per Share has been decreasing by -2.16% on average over the past years.
FORR shows a decrease in Revenue. In the last year, the revenue decreased by -9.61%.
FORR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.30% yearly.
EPS 1Y (TTM)-18.64%
EPS 3Y-11.35%
EPS 5Y-2.16%
EPS Q2Q%-21.43%
Revenue 1Y (TTM)-9.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y-1.3%
Sales Q2Q%-10.19%
3.2 Future
The Earnings Per Share is expected to grow by 2.59% on average over the next years.
Based on estimates for the next years, FORR will show a decrease in Revenue. The Revenue will decrease by -1.86% on average per year.
EPS Next Y-11.88%
EPS Next 2Y2.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.61%
Revenue Next 2Y-1.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.72, the valuation of FORR can be described as very cheap.
FORR's Price/Earnings ratio is rather cheap when compared to the industry. FORR is cheaper than 93.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of FORR to the average of the S&P500 Index (27.18), we can say FORR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.26, the valuation of FORR can be described as very cheap.
Based on the Price/Forward Earnings ratio, FORR is valued cheaper than 95.12% of the companies in the same industry.
FORR is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 6.26 |
4.2 Price Multiples
FORR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FORR is cheaper than 98.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FORR is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.4 | ||
| EV/EBITDA | 0.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FORR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:FORR (7/16/2025, 1:12:43 PM)
9.68
+0.15 (+1.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners52.42%
Inst Owner Change0%
Ins Owners40.04%
Ins Owner Change0.97%
Market Cap184.50M
Analysts45.71
Price Target14.28 (47.52%)
Short Float %1.96%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.73%
Min EPS beat(2)2.8%
Max EPS beat(2)40.66%
EPS beat(4)2
Avg EPS beat(4)5.79%
Min EPS beat(4)-15.55%
Max EPS beat(4)40.66%
EPS beat(8)5
Avg EPS beat(8)4.9%
EPS beat(12)8
Avg EPS beat(12)9.08%
EPS beat(16)12
Avg EPS beat(16)14.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-2.85%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-2.85%
Max Revenue beat(4)-0.3%
Revenue beat(8)1
Avg Revenue beat(8)-1.42%
Revenue beat(12)1
Avg Revenue beat(12)-2.1%
Revenue beat(16)3
Avg Revenue beat(16)-1.5%
PT rev (1m)0%
PT rev (3m)-6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)1.2%
EPS NY rev (3m)-2.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 6.26 | ||
| P/S | 0.44 | ||
| P/FCF | 9.4 | ||
| P/OCF | 8.29 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 0.76 |
EPS(TTM)1.44
EY14.88%
EPS(NY)1.55
Fwd EY15.98%
FCF(TTM)1.03
FCFY10.64%
OCF(TTM)1.17
OCFY12.06%
SpS22.15
BVpS7.74
TBVpS-1.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.63% | ||
| ROE | -58.57% | ||
| ROCE | 6.83% | ||
| ROIC | 5.4% | ||
| ROICexc | 14.25% | ||
| ROICexgc | N/A | ||
| OM | 3.5% | ||
| PM (TTM) | N/A | ||
| GM | 57.98% | ||
| FCFM | 4.65% |
ROA(3y)0.99%
ROA(5y)1.64%
ROE(3y)2.87%
ROE(5y)5.23%
ROIC(3y)6.15%
ROIC(5y)6.29%
ROICexc(3y)9.7%
ROICexc(5y)9.67%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.78%
ROCE(5y)7.96%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-23.98%
ROICexc growth 5Y23.19%
OM growth 3Y-25.12%
OM growth 5Y14.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.78%
GM growth 5Y0.14%
F-Score6
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 16.05% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 5.96 | ||
| Cash Conversion | 71.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.7 |
F-Score6
WACC9.06%
ROIC/WACC0.6
Cap/Depr(3y)24.01%
Cap/Depr(5y)29.15%
Cap/Sales(3y)1%
Cap/Sales(5y)1.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.64%
EPS 3Y-11.35%
EPS 5Y-2.16%
EPS Q2Q%-21.43%
EPS Next Y-11.88%
EPS Next 2Y2.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y-1.3%
Sales Q2Q%-10.19%
Revenue Next Year-5.61%
Revenue Next 2Y-1.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-29.43%
EBIT growth 3Y-28.38%
EBIT growth 5Y12.87%
EBIT Next Year6.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-14.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.27%
OCF growth 3YN/A
OCF growth 5YN/A