FORRESTER RESEARCH INC (FORR) Stock Fundamental Analysis
NASDAQ:FORR - Nasdaq - US3465631097 - Common Stock - Currency: USD
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 may be in some trouble as it scores bad on both profitability and health. FORR is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FORR had positive earnings in the past year.
FORR had a positive operating cash flow in the past year.
Of the past 5 years FORR 4 years were profitable.
Of the past 5 years FORR 4 years had a positive operating cash flow.
1.2 Ratios
FORR has a worse Return On Assets (-19.63%) than 85.19% of its industry peers.
FORR has a Return On Equity of -58.57%. This is amonst the worse of the industry: FORR underperforms 85.19% of its industry peers.
FORR has a Return On Invested Capital of 5.40%. This is comparable to the rest of the industry: FORR outperforms 46.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FORR is significantly below the industry average of 12.78%.
| 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
With a Operating Margin value of 3.50%, FORR perfoms like the industry average, outperforming 43.21% of the companies in the same industry.
FORR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 57.98%, FORR is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
FORR's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for FORR has been reduced compared to 1 year ago.
The number of shares outstanding for FORR has been increased compared to 5 years ago.
Compared to 1 year ago, FORR has a worse debt to assets ratio.
2.2 Solvency
FORR has an Altman-Z score of 1.75. This is a bad value and indicates that FORR is not financially healthy and even has some risk of bankruptcy.
FORR's Altman-Z score of 1.75 is on the low side compared to the rest of the industry. FORR is outperformed by 65.43% of its industry peers.
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.
With a decent Debt to FCF ratio value of 1.78, FORR is doing good in the industry, outperforming 72.84% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that FORR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.24, FORR perfoms like the industry average, outperforming 54.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.63
WACC8.57%
2.3 Liquidity
FORR has a Current Ratio of 0.98. This is a bad value and indicates that FORR is not financially healthy enough and could expect problems in meeting its short term obligations.
FORR's Current ratio of 0.98 is on the low side compared to the rest of the industry. FORR is outperformed by 74.07% of its industry peers.
FORR has a Quick Ratio of 0.98. This is a bad value and indicates that FORR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of FORR (0.98) is worse than 74.07% 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.
The Revenue has decreased by -9.61% in the past year.
Measured over the past years, FORR shows a decrease in Revenue. The Revenue has been decreasing by -1.30% on average per year.
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
Based on estimates for the next years, FORR will show a small growth in Earnings Per Share. The EPS will grow by 2.59% on average per year.
FORR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.86% yearly.
EPS Next Y-12.92%
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
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 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 cheaply with a Price/Earnings ratio of 7.38.
Compared to the rest of the industry, the Price/Earnings ratio of FORR indicates a rather cheap valuation: FORR is cheaper than 90.12% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FORR to the average of the S&P500 Index (26.25), we can say FORR is valued rather cheaply.
The Price/Forward Earnings ratio is 6.87, which indicates a rather cheap valuation of FORR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FORR indicates a rather cheap valuation: FORR is cheaper than 93.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, FORR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 6.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FORR indicates a rather cheap valuation: FORR is cheaper than 96.30% of the companies listed in the same industry.
FORR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FORR is cheaper than 86.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.32 | ||
| EV/EBITDA | 1.49 |
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 |
10.63
-0.09 (-0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners54.75%
Inst Owner Change-5.19%
Ins Owners39.91%
Ins Owner Change0.49%
Market Cap202.61M
Analysts45.71
Price Target15.3 (43.93%)
Short Float %2.29%
Short Ratio3.17
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)0%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)-23.66%
EPS NY rev (1m)-3.46%
EPS NY rev (3m)-20.06%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-3.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 6.87 | ||
| P/S | 0.48 | ||
| P/FCF | 10.32 | ||
| P/OCF | 9.11 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.49 |
EPS(TTM)1.44
EY13.55%
EPS(NY)1.55
Fwd EY14.55%
FCF(TTM)1.03
FCFY9.69%
OCF(TTM)1.17
OCFY10.98%
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 | 1.75 |
F-Score6
WACC8.57%
ROIC/WACC0.63
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-12.92%
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