FARO TECHNOLOGIES INC (FARO) Stock Fundamental Analysis
NASDAQ:FARO - Nasdaq - US3116421021 - Common Stock - Currency: USD
Taking everything into account, FARO scores 4 out of 10 in our fundamental rating. FARO was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. While FARO seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, FARO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year FARO was profitable.
In the past year FARO had a positive cash flow from operations.
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.
1.2 Ratios
The Return On Assets of FARO (-0.18%) is comparable to the rest of the industry.
FARO's Return On Equity of -0.34% is in line compared to the rest of the industry. FARO outperforms 52.00% of its industry peers.
FARO has a Return On Invested Capital (3.24%) which is comparable to the rest of the industry.
| Industry Rank | Sector 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
1.3 Margins
FARO's Operating Margin of 4.62% is fine compared to the rest of the industry. FARO outperforms 64.00% of its industry peers.
FARO has a Gross Margin of 56.03%. This is amongst the best in the industry. FARO outperforms 90.40% of its industry peers.
In the last couple of years the Gross Margin of FARO has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FARO is destroying value.
The number of shares outstanding for FARO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FARO has more shares outstanding
Compared to 1 year ago, FARO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.25 indicates that FARO is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.25, FARO perfoms like the industry average, outperforming 56.80% of the companies in the same industry.
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.
The Debt to FCF ratio of FARO (4.44) is better than 64.00% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that FARO is not too dependend on debt financing.
The Debt to Equity ratio of FARO (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 3.25 |
ROIC/WACC0.38
WACC8.59%
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.
FARO has a Quick Ratio of 2.01. This indicates that FARO is financially healthy and has no problem in meeting its short term obligations.
FARO's Quick ratio of 2.01 is fine compared to the rest of the industry. FARO outperforms 60.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 2.01 |
3. Growth
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
FARO shows a decrease in Revenue. In the last year, the revenue decreased by -4.76%.
Measured over the past years, FARO shows a decrease in Revenue. The Revenue has been decreasing by -2.15% on average per year.
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
Based on estimates for the next years, FARO will show a very strong growth in Earnings Per Share. The EPS will grow by 30.45% on average per year.
FARO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 36.00, the valuation of FARO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as FARO.
FARO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.28.
Based on the Price/Forward Earnings ratio of 26.34, the valuation of FARO can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as FARO.
FARO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36 | ||
| Fwd PE | 26.34 |
4.2 Price Multiples
FARO's Enterprise Value to EBITDA ratio is in line with the industry average.
FARO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.27 | ||
| EV/EBITDA | 25 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FARO's earnings are expected to grow with 30.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)1.67
EPS Next 2Y30.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FARO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
43.92
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.69%
Inst Owner Change-0.2%
Ins Owners2.63%
Ins Owner Change5.92%
Market Cap844.58M
Analysts45.71
Price Target44.88 (2.19%)
Short Float %10.27%
Short Ratio2.03
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)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)6.02%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36 | ||
| Fwd PE | 26.34 | ||
| P/S | 2.48 | ||
| P/FCF | 53.27 | ||
| P/OCF | 29.04 | ||
| P/B | 3.25 | ||
| P/tB | 7.82 | ||
| EV/EBITDA | 25 |
EPS(TTM)1.22
EY2.78%
EPS(NY)1.67
Fwd EY3.8%
FCF(TTM)0.82
FCFY1.88%
OCF(TTM)1.51
OCFY3.44%
SpS17.74
BVpS13.53
TBVpS5.62
PEG (NY)0.77
PEG (5Y)1.67
Profitability
| Industry Rank | Sector 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
ROICexcg growth 3YN/A
ROICexcg 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 Rank | Sector 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 | 3.25 |
F-Score5
WACC8.59%
ROIC/WACC0.38
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%