43.99 USD
+0.21 (+0.48%)
44 USD
+0.01 (+0.02%)
Taking everything into account, FARO scores 4 out of 10 in our fundamental rating. FARO was compared to 124 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FARO was profitable.
FARO had a positive operating cash flow in the past year.
FARO had negative earnings in 4 of the past 5 years.
In multiple years FARO reported negative operating cash flow during the last 5 years.
1.2 Ratios
FARO has a Return On Assets (-0.18%) which is comparable to the rest of the industry.
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.
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 has a better Operating Margin (4.62%) than 64.00% of its industry peers.
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 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.
The number of shares outstanding for FARO has been increased compared to 5 years ago.
Compared to 1 year ago, FARO has a worse debt to assets ratio.
2.2 Solvency
FARO has an Altman-Z score of 3.26. This indicates that FARO is financially healthy and has little risk of 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.
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.
The Debt to FCF ratio of FARO (4.44) is better than 64.80% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that FARO is not too dependend on debt financing.
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
A Current Ratio of 2.31 indicates that FARO has no problem at all paying its short term obligations.
FARO's Current ratio of 2.31 is in line compared to the rest of the industry. FARO outperforms 48.80% of 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 | 2.31 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 269.70% over the past year.
FARO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.51% yearly.
Looking at the last year, FARO shows a decrease in Revenue. The Revenue has decreased by -4.76% in the last year.
The Revenue has been decreasing by -2.15% on average over the past years.
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
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
Compared to the rest of the industry, the Price/Earnings ratio of FARO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.87. FARO is valued slightly more expensive when compared to this.
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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.46.
| 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.6 | ||
| EV/EBITDA | 25.17 |
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)1.68
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 |
43.99
+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 Change0%
Ins Owners2.63%
Ins Owner Change-175.63%
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 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.
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.
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 expected EPS growth for FARO stock?
The Earnings per Share (EPS) of FARO TECHNOLOGIES INC (FARO) is expected to grow by 46.76% in the next year.