FARO TECHNOLOGIES INC (FARO)
US3116421021 - Common Stock
We assign a fundamental rating of 3 out of 10 to FARO. FARO was compared to 126 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
FARO had positive earnings in the past year.
FARO had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -1.33%, FARO is in line with its industry, outperforming 46.28% of the companies in the same industry.
FARO has a Return On Equity (-2.54%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 0.18%, FARO is in line with its industry, outperforming 47.93% of the companies in the same industry.
| 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 has a Operating Margin (0.24%) which is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 53.02%, FARO belongs to the top of the industry, outperforming 91.74% of the companies in the same industry.
FARO's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FARO is destroying value.
FARO has more shares outstanding than it did 1 year ago.
FARO has more shares outstanding than it did 5 years ago.
FARO has a worse debt/assets ratio than last year.
2.2 Solvency
FARO has an Altman-Z score of 2.28. This is not the best score and indicates that FARO is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of FARO (2.28) is worse than 66.12% 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.
With a decent Debt to FCF ratio value of 3.55, FARO is doing good in the industry, outperforming 64.46% of the companies in the same industry.
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 40.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.02
WACC10.27%
2.3 Liquidity
A Current Ratio of 2.17 indicates that FARO has no problem at all paying its short term obligations.
FARO's Current ratio of 2.17 is in line compared to the rest of the industry. FARO outperforms 44.63% of its industry peers.
A Quick Ratio of 1.83 indicates that FARO should not have too much problems paying its short term obligations.
FARO has a Quick ratio (1.83) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
FARO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 800.00%, which is quite impressive.
FARO shows a decrease in Revenue. In the last year, the revenue decreased by -4.44%.
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.
FARO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.38% yearly.
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
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
A Price/Earnings ratio of 31.60 indicates a quite expensive valuation of FARO.
Based on the Price/Earnings ratio, FARO is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.40, FARO is valued at the same level.
The Price/Forward Earnings ratio is 25.88, which means the current valuation is very expensive for 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 23.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.6 | ||
| Fwd PE | 25.88 |
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 the industry average as 70.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.46 | ||
| EV/EBITDA | 29.87 |
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
No dividends for FARO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FARO TECHNOLOGIES INC
NASDAQ:FARO (1/6/2025, 6:27:12 PM)
After market: 26.54 0 (0%)26.54
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.43%
Inst Owner Change0%
Ins Owners2.72%
Ins Owner Change-3.2%
Market Cap502.14M
Analysts82.5
Price Target30.09 (13.38%)
Short Float %4.41%
Short Ratio4.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)1114.42%
Min EPS beat(2)564.14%
Max EPS beat(2)1664.71%
EPS beat(4)4
Avg EPS beat(4)618.46%
Min EPS beat(4)69.28%
Max EPS beat(4)1664.71%
EPS beat(8)7
Avg EPS beat(8)308.97%
EPS beat(12)9
Avg EPS beat(12)183.96%
EPS beat(16)11
Avg EPS beat(16)132.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)2.5%
Revenue beat(4)3
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)2.5%
Revenue beat(8)5
Avg Revenue beat(8)1.24%
Revenue beat(12)5
Avg Revenue beat(12)-0.59%
Revenue beat(16)6
Avg Revenue beat(16)-0.14%
PT rev (1m)5.36%
PT rev (3m)20.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.66%
EPS NY rev (1m)0%
EPS NY rev (3m)44.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.6 | ||
| Fwd PE | 25.88 | ||
| P/S | 1.44 | ||
| P/FCF | 25.46 | ||
| P/OCF | 15.69 | ||
| P/B | 1.97 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 29.87 |
EPS(TTM)0.84
EY3.17%
EPS(NY)1.03
Fwd EY3.86%
FCF(TTM)1.04
FCFY3.93%
OCF(TTM)1.69
OCFY6.37%
SpS18.38
BVpS13.51
TBVpS5.19
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.33% | ||
| ROE | -2.54% | ||
| ROCE | 0.22% | ||
| ROIC | 0.18% | ||
| ROICexc | 0.23% | ||
| ROICexgc | 0.51% | ||
| OM | 0.24% | ||
| PM (TTM) | N/A | ||
| GM | 53.02% | ||
| FCFM | 5.67% |
ROA(3y)-8.4%
ROA(5y)-7.57%
ROE(3y)-13.98%
ROE(5y)-12.09%
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 3Y-4.38%
GM growth 5Y-3.49%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.55 | ||
| Debt/EBITDA | 4.33 | ||
| Cap/Depr | 80% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 197.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 2.28 |
F-Score5
WACC10.27%
ROIC/WACC0.02
Cap/Depr(3y)100.43%
Cap/Depr(5y)78.27%
Cap/Sales(3y)4.11%
Cap/Sales(5y)3.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)800%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%950%
EPS Next Y731.67%
EPS Next 2Y205.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.44%
Revenue growth 3Y5.71%
Revenue growth 5Y-2.32%
Sales Q2Q%-4.9%
Revenue Next Year-4.56%
Revenue Next 2Y-0.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y102.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1141.19%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y155.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y299.19%
OCF growth 3Y-63.1%
OCF growth 5Y-29.83%