FARO TECHNOLOGIES INC (FARO) Stock Fundamental Analysis
USA - NASDAQ:FARO - US3116421021 - Common Stock
43.99 USD
+0.21 (+0.48%)
44 USD
+0.01 (+0.02%)
FARO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. FARO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. FARO has a decent growth rate and is not valued too expensively.
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.
In multiple years FARO reported negative operating cash flow during the last 5 years.
1.2 Ratios
FARO has a Return On Assets of -0.18%. This is comparable to the rest of the industry: FARO outperforms 51.20% of its industry peers.
With a Return On Equity value of -0.34%, FARO perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
The Return On Invested Capital of FARO (3.24%) 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 has a Operating Margin of 4.62%. This is in the better half of the industry: FARO outperforms 64.00% of its industry peers.
With an excellent Gross Margin value of 56.03%, FARO belongs to the best 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 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
FARO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FARO has about the same amount of 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 3.26 indicates that FARO is not in any danger for bankruptcy at the moment.
FARO has a Altman-Z score (3.26) which is in line with its industry peers.
FARO has a debt to FCF ratio of 4.44. This is a neutral value as FARO would need 4.44 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.44, FARO is doing good in the industry, outperforming 64.80% of the companies in the same industry.
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 Debt to Equity ratio of 0.27. This is comparable to the rest of the industry: FARO outperforms 40.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.34
WACC9.53%
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.
FARO has a Quick ratio (2.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
FARO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 269.70%, which is quite impressive.
Measured over the past years, FARO shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.51% on average per year.
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
The Earnings Per Share is expected to grow by 30.45% on average over the next years. This is a very strong growth
Based on estimates for the next years, FARO will show a small growth in Revenue. The Revenue will grow by 3.95% on average per year.
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
A Price/Earnings ratio of 36.06 indicates a quite expensive valuation of FARO.
The rest of the industry has a similar Price/Earnings ratio as FARO.
Compared to an average S&P500 Price/Earnings ratio of 26.51, FARO is valued a bit more expensive.
A Price/Forward Earnings ratio of 26.38 indicates a quite expensive valuation of FARO.
FARO's Price/Forward Earnings ratio is in line with the industry average.
FARO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 26.38 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.6 | ||
| EV/EBITDA | 25.17 |
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
5. Dividend
5.1 Amount
FARO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
43.99
+0.21 (+0.48%)
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-0.43%
Ins Owners2.63%
Ins Owner Change-169.05%
Market Cap849.89M
Revenue(TTM)341.05M
Net Income(TTM)-893000
Analysts45.71
Price Target44.88 (2.02%)
Short Float %N/A
Short RatioN/A
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)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 Rank | Sector 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 NumberN/A
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
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 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 | 3.26 |
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 FAQ
What is the ChartMill fundamental rating of FARO TECHNOLOGIES INC (FARO) stock?
ChartMill assigns a fundamental rating of 4 / 10 to FARO.
Can you provide the valuation status for FARO TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 4 / 10 to FARO TECHNOLOGIES INC (FARO). This can be considered as Fairly Valued.
How profitable is FARO TECHNOLOGIES INC (FARO) stock?
FARO TECHNOLOGIES INC (FARO) has a profitability rating of 3 / 10.
What are the PE and PB ratios of FARO TECHNOLOGIES INC (FARO) stock?
The Price/Earnings (PE) ratio for FARO TECHNOLOGIES INC (FARO) is 36.06 and the Price/Book (PB) ratio is 3.27.
Can you provide the financial health for FARO stock?
The financial health rating of FARO TECHNOLOGIES INC (FARO) is 6 / 10.