FARO TECHNOLOGIES INC (FARO) Fundamental Analysis & Valuation

NASDAQ:FARO • US3116421021

Current stock price

43.99 USD
+0.21 (+0.48%)
At close:
44 USD
+0.01 (+0.02%)
After Hours:

This FARO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. FARO Profitability Analysis

1.1 Basic Checks

  • FARO had positive earnings in the past year.
  • FARO had a positive operating cash flow in the past year.
  • In the past 5 years FARO reported 4 times negative net income.
  • In multiple years FARO reported negative operating cash flow during the last 5 years.
FARO Yearly Net Income VS EBIT VS OCF VS FCFFARO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M -40M -60M

1.2 Ratios

  • FARO's Return On Assets of -0.18% is in line compared to the rest of the industry. FARO outperforms 51.20% of its industry peers.
  • FARO has a Return On Equity of -0.34%. This is comparable to the rest of the industry: FARO outperforms 52.00% of its industry peers.
  • FARO's Return On Invested Capital of 3.24% is in line compared to the rest of the industry. FARO outperforms 56.80% of its industry peers.
Industry RankSector Rank
ROA -0.18%
ROE -0.34%
ROIC 3.24%
ROA(3y)-6.25%
ROA(5y)-5.39%
ROE(3y)-11.1%
ROE(5y)-9.08%
ROIC(3y)N/A
ROIC(5y)N/A
FARO Yearly ROA, ROE, ROICFARO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -5 -10 -15 -20

1.3 Margins

  • Looking at the Operating Margin, with a value of 4.62%, FARO is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
  • Looking at the Gross Margin, with a value of 56.03%, FARO belongs to the top of the industry, outperforming 90.40% of the companies in the same industry.
  • In the last couple of years the Gross Margin of FARO has remained more or less at the same level.
Industry RankSector Rank
OM 4.62%
PM (TTM) N/A
GM 56.03%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.13%
GM growth 5Y1.05%
FARO Yearly Profit, Operating, Gross MarginsFARO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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5

2. FARO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FARO is destroying value.
  • FARO has about the same amout of shares outstanding than it did 1 year ago.
  • FARO has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for FARO is higher compared to a year ago.
FARO Yearly Shares OutstandingFARO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
FARO Yearly Total Debt VS Total AssetsFARO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.2 Solvency

  • An Altman-Z score of 3.26 indicates that FARO is not in any danger for bankruptcy at the moment.
  • FARO has a Altman-Z score of 3.26. This is comparable to the rest of the industry: FARO outperforms 52.00% of its industry peers.
  • The Debt to FCF ratio of FARO is 4.44, which is a neutral value as it means it would take FARO, 4.44 years of fcf income to pay off all of its debts.
  • FARO has a Debt to FCF ratio of 4.44. This is in the better half of the industry: FARO outperforms 64.80% of its industry peers.
  • FARO has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.27, FARO is in line with its industry, outperforming 40.80% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.44
Altman-Z 3.26
ROIC/WACC0.34
WACC9.53%
FARO Yearly LT Debt VS Equity VS FCFFARO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

  • FARO has a Current Ratio of 2.31. This indicates that FARO is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.31, FARO is in line with its industry, outperforming 48.80% of the companies in the same industry.
  • A Quick Ratio of 2.01 indicates that FARO has no problem at all paying its short term obligations.
  • The Quick ratio of FARO (2.01) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.31
Quick Ratio 2.01
FARO Yearly Current Assets VS Current LiabilitesFARO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. FARO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 269.70% over the past year.
  • The Earnings Per Share has been growing by 21.51% on average over the past years. This is a very strong growth
  • The Revenue has decreased by -4.76% in the past year.
  • FARO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.15% yearly.
EPS 1Y (TTM)269.7%
EPS 3Y20.51%
EPS 5Y21.51%
EPS Q2Q%266.67%
Revenue 1Y (TTM)-4.76%
Revenue growth 3Y0.45%
Revenue growth 5Y-2.15%
Sales Q2Q%-1.64%

3.2 Future

  • FARO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.45% yearly.
  • The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y46.76%
EPS Next 2Y30.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.21%
Revenue Next 2Y3.95%
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 accelerating: in the next years the growth will be better than in the last years.
FARO Yearly Revenue VS EstimatesFARO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M
FARO Yearly EPS VS EstimatesFARO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 1 1.5

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4

4. FARO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 36.06, FARO can be considered very expensive at the moment.
  • FARO's Price/Earnings is on the same level as the industry average.
  • FARO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.66.
  • FARO is valuated quite expensively with a Price/Forward Earnings ratio of 26.38.
  • The rest of the industry has a similar Price/Forward Earnings ratio as FARO.
  • When comparing the Price/Forward Earnings ratio of FARO to the average of the S&P500 Index (38.00), we can say FARO is valued slightly cheaper.
Industry RankSector Rank
PE 36.06
Fwd PE 26.38
FARO Price Earnings VS Forward Price EarningsFARO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as FARO.
  • FARO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 53.6
EV/EBITDA 25.17
FARO Per share dataFARO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • FARO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as FARO's earnings are expected to grow with 30.45% in the coming years.
PEG (NY)0.77
PEG (5Y)1.68
EPS Next 2Y30.45%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. FARO Dividend Analysis

5.1 Amount

  • FARO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FARO Fundamentals: All Metrics, Ratios and Statistics

FARO TECHNOLOGIES INC

NASDAQ:FARO (7/18/2025, 8:00:02 PM)

After market: 44 +0.01 (+0.02%)

43.99

+0.21 (+0.48%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)04-24
Earnings (Next)08-06
Inst Owners107.69%
Inst Owner Change0%
Ins Owners2.63%
Ins Owner Change0%
Market Cap849.89M
Revenue(TTM)341.05M
Net Income(TTM)-893.00K
Analysts45.71
Price Target44.88 (2.02%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)2
Avg EPS beat(2)62.45%
Min EPS beat(2)22.7%
Max EPS beat(2)102.21%
EPS beat(4)4
Avg EPS beat(4)588.44%
Min EPS beat(4)22.7%
Max EPS beat(4)1664.71%
EPS beat(8)8
Avg EPS beat(8)346.58%
EPS beat(12)11
Avg EPS beat(12)237.35%
EPS beat(16)12
Avg EPS beat(16)139.55%
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.74%
Max Revenue beat(2)1.24%
Revenue beat(4)3
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)2.5%
Revenue beat(8)7
Avg Revenue beat(8)1.92%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)7
Avg Revenue beat(16)-0.84%
PT rev (1m)0%
PT rev (3m)14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.51%
EPS NY rev (1m)0%
EPS NY rev (3m)19.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 36.06
Fwd PE 26.38
P/S 2.49
P/FCF 53.6
P/OCF 29.22
P/B 3.27
P/tB 7.87
EV/EBITDA 25.17
EPS(TTM)1.22
EY2.77%
EPS(NY)1.67
Fwd EY3.79%
FCF(TTM)0.82
FCFY1.87%
OCF(TTM)1.51
OCFY3.42%
SpS17.65
BVpS13.47
TBVpS5.59
PEG (NY)0.77
PEG (5Y)1.68
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA -0.18%
ROE -0.34%
ROCE 4.1%
ROIC 3.24%
ROICexc 4.42%
ROICexgc 9.6%
OM 4.62%
PM (TTM) N/A
GM 56.03%
FCFM 4.65%
ROA(3y)-6.25%
ROA(5y)-5.39%
ROE(3y)-11.1%
ROE(5y)-9.08%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.13%
GM growth 5Y1.05%
F-Score5
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.44
Debt/EBITDA 2.19
Cap/Depr 81.02%
Cap/Sales 3.88%
Interest Coverage 250
Cash Conversion 90.65%
Profit Quality N/A
Current Ratio 2.31
Quick Ratio 2.01
Altman-Z 3.26
F-Score5
WACC9.53%
ROIC/WACC0.34
Cap/Depr(3y)98.69%
Cap/Depr(5y)85.56%
Cap/Sales(3y)4.22%
Cap/Sales(5y)3.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)269.7%
EPS 3Y20.51%
EPS 5Y21.51%
EPS Q2Q%266.67%
EPS Next Y46.76%
EPS Next 2Y30.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.76%
Revenue growth 3Y0.45%
Revenue growth 5Y-2.15%
Sales Q2Q%-1.64%
Revenue Next Year2.21%
Revenue Next 2Y3.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y162.8%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year115.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y130.75%
FCF growth 3YN/A
FCF growth 5Y-5.95%
OCF growth 1Y180.43%
OCF growth 3YN/A
OCF growth 5Y-1.16%

FARO TECHNOLOGIES INC / FARO Fundamental Analysis FAQ

What is the ChartMill fundamental rating of FARO TECHNOLOGIES INC (FARO) stock?

ChartMill assigns a fundamental rating of 4 / 10 to FARO.


What is the valuation status for FARO stock?

ChartMill assigns a valuation rating of 4 / 10 to FARO TECHNOLOGIES INC (FARO). This can be considered as Fairly Valued.


Can you provide the profitability details for FARO TECHNOLOGIES INC?

FARO TECHNOLOGIES INC (FARO) has a profitability rating of 3 / 10.


Can you provide the PE and PB ratios for FARO stock?

The Price/Earnings (PE) ratio for FARO TECHNOLOGIES INC (FARO) is 36.06 and the Price/Book (PB) ratio is 3.27.