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. While FARO seems to be doing ok healthwise, there are quite some concerns on its profitability. FARO has a valuation in line with the averages, but it does not seem to be growing.
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.
FARO had negative earnings in 4 of the past 5 years.
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's Return On Assets of -1.33% is in line compared to the rest of the industry. FARO outperforms 48.39% of its industry peers.
Looking at the Return On Equity, with a value of -2.54%, FARO is in line with its industry, outperforming 48.39% of the companies in the same industry.
FARO's Return On Invested Capital of 0.18% is in line compared to the rest of the industry. FARO outperforms 50.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.33% | ||
| ROE | -2.54% | ||
| ROIC | 0.18% |
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's Operating Margin of 0.24% is in line compared to the rest of the industry. FARO outperforms 50.00% of its industry peers.
FARO has a Gross Margin of 53.02%. This is amongst the best in the industry. FARO outperforms 88.71% of its industry peers.
In the last couple of years the Gross Margin of FARO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.24% | ||
| PM (TTM) | N/A | ||
| GM | 53.02% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FARO is destroying value.
Compared to 1 year ago, FARO has more shares outstanding
FARO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FARO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.30 indicates that FARO is not a great score, but indicates only limited risk for bankruptcy at the moment.
FARO has a worse Altman-Z score (2.30) than 62.90% of its industry peers.
The Debt to FCF ratio of FARO is 3.55, which is a good value as it means it would take FARO, 3.55 years of fcf income to pay off all of its debts.
FARO has a better Debt to FCF ratio (3.55) than 64.52% 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 40.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.02
WACC10.01%
2.3 Liquidity
A Current Ratio of 2.17 indicates that FARO has no problem at all paying its short term obligations.
The Current ratio of FARO (2.17) is comparable to the rest of the industry.
A Quick Ratio of 1.83 indicates that FARO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.83, FARO perfoms like the industry average, outperforming 52.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 800.00% over the past year.
The Revenue has decreased by -4.44% in the past year.
FARO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.32% yearly.
EPS 1Y (TTM)800%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%950%
Revenue 1Y (TTM)-4.44%
Revenue growth 3Y5.71%
Revenue growth 5Y-2.32%
Sales Q2Q%-4.9%
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 205.38% on average per year.
Based on estimates for the next years, FARO will show a decrease in Revenue. The Revenue will decrease by -0.38% on average per year.
EPS Next Y731.67%
EPS Next 2Y205.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.56%
Revenue Next 2Y-0.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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 32.14, the valuation of FARO can be described as expensive.
Based on the Price/Earnings ratio, FARO is valued a bit cheaper than 62.10% of the companies in the same industry.
FARO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.29.
A Price/Forward Earnings ratio of 26.33 indicates a quite expensive valuation of FARO.
FARO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, FARO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.14 | ||
| Fwd PE | 26.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FARO.
Based on the Price/Free Cash Flow ratio, FARO is valued a bit cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.9 | ||
| EV/EBITDA | 30.38 |
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.
FARO's earnings are expected to grow with 205.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y205.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FARO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FARO TECHNOLOGIES INC
NASDAQ:FARO (11/22/2024, 8:00:02 PM)
After market: 27 0 (0%)27
+0.7 (+2.66%)
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 Cap510.84M
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 | 32.14 | ||
| Fwd PE | 26.33 | ||
| 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)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.33% | ||
| ROE | -2.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.24% | ||
| PM (TTM) | N/A | ||
| GM | 53.02% | ||
| 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 Turnover0.71
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 | 2.17 | ||
| Quick Ratio | 1.83 | ||
| 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 Y731.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.44%
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