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%)
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. FARO has a correct valuation and a medium growth rate.
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 (-0.18%) which is in line with its industry peers.
FARO has a Return On Equity (-0.34%) which is comparable to the rest of the industry.
FARO has a Return On Invested Capital of 3.24%. This is comparable to the rest of the industry: FARO outperforms 56.80% of its industry peers.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FARO is destroying value.
Compared to 1 year ago, FARO has about the same amount of 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
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.
The Altman-Z score of FARO (3.26) is comparable to the rest of the 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 64.80% 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 40.80% of the companies in the same industry.
| 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.
FARO has a Current ratio of 2.31. This is comparable to the rest of the industry: FARO outperforms 48.80% of its industry peers.
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.
Looking at the Quick ratio, with a value of 2.01, FARO is in line with its industry, outperforming 60.00% of the companies in the same 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.
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%.
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
FARO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.45% yearly.
The Revenue is expected to grow by 3.95% on average over the next years.
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
With a Price/Earnings ratio of 36.06, FARO can be considered very expensive at the moment.
FARO's Price/Earnings is on the same level as the industry average.
FARO is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.38 indicates a quite expensive valuation of FARO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FARO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.88. FARO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 26.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FARO is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as FARO.
| 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.
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
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 Change1.4%
Ins Owners2.63%
Ins Owner Change-169.09%
Market Cap849.89M
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
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 | 3.26 |
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%