FORRESTER RESEARCH INC (FORR)
US3465631097 - Common Stock
FORR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. FORR has a bad profitability rating. Also its financial health evaluation is rather negative. FORR is valued correctly, but it does not seem to be growing.
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.
Of the past 5 years FORR 4 years were profitable.
FORR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FORR (0.54%) is worse than 60.00% of its industry peers.
FORR has a Return On Equity of 1.26%. This is in the lower half of the industry: FORR underperforms 60.00% of its industry peers.
FORR has a Return On Invested Capital (3.71%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FORR is significantly below the industry average of 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 1.26% | ||
| ROIC | 3.71% |
ROA(3y)2.59%
ROA(5y)1.56%
ROE(3y)7.76%
ROE(5y)4.52%
ROIC(3y)5.81%
ROIC(5y)4.44%
1.3 Margins
The Profit Margin of FORR (0.63%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FORR has declined.
With a Operating Margin value of 4.18%, FORR is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of FORR has declined.
Looking at the Gross Margin, with a value of 57.49%, FORR is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
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 | 4.18% | ||
| PM (TTM) | 0.63% | ||
| GM | 57.49% |
OM growth 3Y-5.25%
OM growth 5Y-10.67%
PM growth 3Y-34.2%
PM growth 5Y-31.82%
GM growth 3Y-1.27%
GM growth 5Y-0.54%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FORR is destroying value.
The number of shares outstanding for FORR has been increased compared to 1 year ago.
FORR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FORR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.01 indicates that FORR is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.01, FORR is doing worse than 66.25% of the companies in the same industry.
FORR has a debt to FCF ratio of 2.16. This is a good value and a sign of high solvency as FORR would need 2.16 years to pay back of all of its debts.
The Debt to FCF ratio of FORR (2.16) is better than 70.00% of its industry peers.
FORR has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FORR (0.15) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.43
WACC8.62%
2.3 Liquidity
A Current Ratio of 0.90 indicates that FORR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.90, FORR is doing worse than 83.75% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that FORR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, FORR is doing worse than 82.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
FORR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.08%.
Measured over the past 5 years, FORR shows a small growth in Earnings Per Share. The EPS has been growing by 6.76% on average per year.
The Revenue for FORR has decreased by -10.60% in the past year. This is quite bad
Measured over the past years, FORR shows a small growth in Revenue. The Revenue has been growing by 6.10% on average per year.
EPS 1Y (TTM)-23.08%
EPS 3Y5.68%
EPS 5Y6.76%
EPS growth Q2Q-44.44%
Revenue 1Y (TTM)-10.6%
Revenue growth 3Y2.31%
Revenue growth 5Y6.1%
Revenue growth Q2Q-13.74%
3.2 Future
FORR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.56% yearly.
The Revenue is expected to decrease by -2.54% on average over the next years.
EPS Next Y-16.07%
EPS Next 2Y-4.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.63%
Revenue Next 2Y-2.54%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FORR is valuated reasonably with a Price/Earnings ratio of 9.57.
95.00% of the companies in the same industry are more expensive than FORR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.28, FORR is valued rather cheaply.
A Price/Forward Earnings ratio of 11.41 indicates a reasonable valuation of FORR.
87.50% of the companies in the same industry are more expensive than FORR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, FORR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FORR is valued cheaper than 96.25% of the companies in the same industry.
61.25% of the companies in the same industry are more expensive than FORR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.86 | ||
| EV/EBITDA | 5.25 |
4.3 Compensation for Growth
A cheap valuation may be justified as FORR's earnings are expected to decrease with -4.56% in the coming years.
PEG (NY)N/A
PEG (5Y)1.42
EPS Next 2Y-4.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FORR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FORRESTER RESEARCH INC
NASDAQ:FORR (5/3/2024, 7:00:00 PM)
After market: 18.19 0 (0%)18.19
-0.15 (-0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap353.61M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 11.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 1.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.18% | ||
| PM (TTM) | 0.63% | ||
| GM | 57.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.08%
EPS 3Y5.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y-16.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.6%
Revenue growth 3Y2.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y