FARO TECHNOLOGIES INC (FARO)
US3116421021 - Common Stock
FARO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. The financial health of FARO is average, but there are quite some concerns on its profitability. FARO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
FARO had positive earnings in the past year.
In the past year FARO had a positive cash flow from operations.
In the past 5 years FARO reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: FARO reported negative operating cash flow in multiple years.
1.2 Ratios
FARO has a Return On Assets (-3.12%) which is comparable to the rest of the industry.
With a Return On Equity value of -5.85%, FARO perfoms like the industry average, outperforming 44.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.12% | ||
| ROE | -5.85% | ||
| ROIC | N/A |
ROA(3y)-8.4%
ROA(5y)-7.57%
ROE(3y)-13.98%
ROE(5y)-12.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
FARO has a Gross Margin of 51.16%. This is amongst the best in the industry. FARO outperforms 86.29% of its industry peers.
FARO's Gross Margin has declined in the last couple of years.
FARO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 51.16% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.38%
GM growth 5Y-3.49%
2. Health
2.1 Basic Checks
FARO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, FARO has more shares outstanding
Compared to 5 years ago, FARO has more shares outstanding
FARO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.97 indicates that FARO is not a great score, but indicates only limited risk for bankruptcy at the moment.
FARO has a Altman-Z score of 1.97. This is in the lower half of the industry: FARO underperforms 65.32% of its industry peers.
The Debt to FCF ratio of FARO is 5.02, which is a neutral value as it means it would take FARO, 5.02 years of fcf income to pay off all of its debts.
FARO's Debt to FCF ratio of 5.02 is in line compared to the rest of the industry. FARO outperforms 58.06% 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.
FARO has a worse Debt to Equity ratio (0.27) than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 5.02 | ||
| Altman-Z | 1.97 |
ROIC/WACCN/A
WACC9.41%
2.3 Liquidity
A Current Ratio of 2.33 indicates that FARO has no problem at all paying its short term obligations.
FARO has a Current ratio (2.33) which is in line with its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 800.00% over the past year.
The Revenue has been growing slightly by 3.77% in the past year.
Measured over the past years, FARO shows a decrease in Revenue. The Revenue has been decreasing by -2.32% on average per year.
EPS 1Y (TTM)800%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%950%
Revenue 1Y (TTM)3.77%
Revenue growth 3Y5.71%
Revenue growth 5Y-2.32%
Sales Q2Q%-4.9%
3.2 Future
The Earnings Per Share is expected to grow by 192.90% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.32% on average over the next years.
EPS Next Y538.6%
EPS Next 2Y192.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.42%
Revenue Next 2Y-0.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.60, which means the current valuation is very expensive for FARO.
73.39% of the companies in the same industry are more expensive than FARO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FARO to the average of the S&P500 Index (28.94), we can say FARO is valued inline with the index average.
The Price/Forward Earnings ratio is 27.90, which means the current valuation is very expensive for FARO.
FARO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FARO is cheaper than 71.77% of the companies in the same industry.
FARO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.6 | ||
| Fwd PE | 27.9 |
4.2 Price Multiples
FARO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FARO is valued a bit cheaper than 68.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.98 | ||
| EV/EBITDA | 36.05 |
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 192.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y192.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FARO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FARO TECHNOLOGIES INC
NASDAQ:FARO (11/7/2024, 8:00:02 PM)
After market: 25.7 0 (0%)25.7
+6.87 (+36.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap501.15M
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 | 30.6 | ||
| Fwd PE | 27.9 | ||
| 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)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.12% | ||
| ROE | -5.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 51.16% | ||
| 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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.01 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)800%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y538.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.77%
Revenue growth 3Y5.71%
Revenue growth 5Y
Sales 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