FORMFACTOR INC (FORM) Stock Fundamental Analysis
NASDAQ:FORM - Nasdaq - US3463751087 - Common Stock - Currency: USD
Taking everything into account, FORM scores 6 out of 10 in our fundamental rating. FORM was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. FORM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. FORM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FORM had positive earnings in the past year.
In the past year FORM had a positive cash flow from operations.
Each year in the past 5 years FORM has been profitable.
In the past 5 years FORM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.07%, FORM is doing good in the industry, outperforming 68.52% of the companies in the same industry.
FORM has a Return On Equity (7.35%) which is comparable to the rest of the industry.
FORM has a better Return On Invested Capital (3.92%) than 60.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FORM is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 7.35% | ||
| ROIC | 3.92% |
ROA(3y)6.18%
ROA(5y)6.98%
ROE(3y)7.56%
ROE(5y)8.7%
ROIC(3y)4.12%
ROIC(5y)6.44%
1.3 Margins
FORM's Profit Margin of 9.12% is fine compared to the rest of the industry. FORM outperforms 63.89% of its industry peers.
In the last couple of years the Profit Margin of FORM has grown nicely.
FORM has a Operating Margin of 5.79%. This is comparable to the rest of the industry: FORM outperforms 56.48% of its industry peers.
FORM's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 40.33%, FORM is not doing good in the industry: 60.19% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of FORM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.79% | ||
| PM (TTM) | 9.12% | ||
| GM | 40.33% |
OM growth 3Y-24.15%
OM growth 5Y-7.25%
PM growth 3Y-5.78%
PM growth 5Y6.46%
GM growth 3Y-1.62%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FORM is destroying value.
FORM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, FORM has more shares outstanding
The debt/assets ratio for FORM has been reduced compared to a year ago.
2.2 Solvency
FORM has an Altman-Z score of 10.19. This indicates that FORM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FORM (10.19) is better than 78.70% of its industry peers.
FORM has a debt to FCF ratio of 0.17. This is a very positive value and a sign of high solvency as it would only need 0.17 years to pay back of all of its debts.
The Debt to FCF ratio of FORM (0.17) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that FORM is not too dependend on debt financing.
FORM has a better Debt to Equity ratio (0.01) than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 10.19 |
ROIC/WACC0.33
WACC11.9%
2.3 Liquidity
FORM has a Current Ratio of 4.61. This indicates that FORM is financially healthy and has no problem in meeting its short term obligations.
FORM has a better Current ratio (4.61) than 72.22% of its industry peers.
FORM has a Quick Ratio of 3.83. This indicates that FORM is financially healthy and has no problem in meeting its short term obligations.
FORM has a better Quick ratio (3.83) than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.61 | ||
| Quick Ratio | 3.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 59.72% over the past year.
Measured over the past 5 years, FORM shows a small growth in Earnings Per Share. The EPS has been growing by 2.03% on average per year.
Looking at the last year, FORM shows a quite strong growth in Revenue. The Revenue has grown by 15.16% in the last year.
Measured over the past years, FORM shows a small growth in Revenue. The Revenue has been growing by 5.31% on average per year.
EPS 1Y (TTM)59.72%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%35%
Revenue 1Y (TTM)15.16%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%12.68%
3.2 Future
Based on estimates for the next years, FORM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.14% on average per year.
The Revenue is expected to grow by 7.56% on average over the next years.
EPS Next Y17.36%
EPS Next 2Y23.14%
EPS Next 3Y12.14%
EPS Next 5YN/A
Revenue Next Year8.82%
Revenue Next 2Y7.56%
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.
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
The Price/Earnings ratio is 30.77, which means the current valuation is very expensive for FORM.
Based on the Price/Earnings ratio, FORM is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, FORM is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.21, the valuation of FORM can be described as expensive.
FORM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FORM is cheaper than 64.81% of the companies in the same industry.
FORM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.77 | ||
| Fwd PE | 26.21 |
4.2 Price Multiples
FORM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, FORM is valued a bit cheaper than 73.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.64 | ||
| EV/EBITDA | 30.87 |
4.3 Compensation for Growth
FORM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as FORM's earnings are expected to grow with 12.14% in the coming years.
PEG (NY)1.77
PEG (5Y)15.15
EPS Next 2Y23.14%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
FORM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.38
-2.01 (-5.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.48%
Inst Owner Change0.76%
Ins Owners0.85%
Ins Owner Change-1.3%
Market Cap2.74B
Analysts77.5
Price Target55.42 (56.64%)
Short Float %4.54%
Short Ratio3.69
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)1
Avg EPS beat(2)0.51%
Min EPS beat(2)-9.04%
Max EPS beat(2)10.05%
EPS beat(4)2
Avg EPS beat(4)0.84%
Min EPS beat(4)-9.04%
Max EPS beat(4)10.05%
EPS beat(8)5
Avg EPS beat(8)4.9%
EPS beat(12)9
Avg EPS beat(12)10.8%
EPS beat(16)12
Avg EPS beat(16)9.34%
Revenue beat(2)1
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)1.78%
Revenue beat(4)2
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)1.78%
Revenue beat(8)4
Avg Revenue beat(8)-0.67%
Revenue beat(12)5
Avg Revenue beat(12)-0.48%
Revenue beat(16)6
Avg Revenue beat(16)-0.4%
PT rev (1m)1.45%
PT rev (3m)-9.61%
EPS NQ rev (1m)-42.19%
EPS NQ rev (3m)-44.65%
EPS NY rev (1m)-20.65%
EPS NY rev (3m)-20.71%
Revenue NQ rev (1m)-13.19%
Revenue NQ rev (3m)-10.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.77 | ||
| Fwd PE | 26.21 | ||
| P/S | 3.59 | ||
| P/FCF | 34.64 | ||
| P/OCF | 23.31 | ||
| P/B | 2.89 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 30.87 |
EPS(TTM)1.15
EY3.25%
EPS(NY)1.35
Fwd EY3.81%
FCF(TTM)1.02
FCFY2.89%
OCF(TTM)1.52
OCFY4.29%
SpS9.86
BVpS12.24
TBVpS9.53
PEG (NY)1.77
PEG (5Y)15.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 7.35% | ||
| ROCE | 4.36% | ||
| ROIC | 3.92% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 8.93% | ||
| OM | 5.79% | ||
| PM (TTM) | 9.12% | ||
| GM | 40.33% | ||
| FCFM | 10.36% |
ROA(3y)6.18%
ROA(5y)6.98%
ROE(3y)7.56%
ROE(5y)8.7%
ROIC(3y)4.12%
ROIC(5y)6.44%
ROICexc(3y)5.96%
ROICexc(5y)9.39%
ROICexgc(3y)9.3%
ROICexgc(5y)16.23%
ROCE(3y)4.58%
ROCE(5y)7.16%
ROICexcg growth 3Y-30.39%
ROICexcg growth 5Y-14.73%
ROICexc growth 3Y-26.71%
ROICexc growth 5Y-8.11%
OM growth 3Y-24.15%
OM growth 5Y-7.25%
PM growth 3Y-5.78%
PM growth 5Y6.46%
GM growth 3Y-1.62%
GM growth 5Y0.02%
F-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.17 | ||
| Debt/EBITDA | 0.16 | ||
| Cap/Depr | 116.82% | ||
| Cap/Sales | 5.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 152.44% | ||
| Profit Quality | 113.62% | ||
| Current Ratio | 4.61 | ||
| Quick Ratio | 3.83 | ||
| Altman-Z | 10.19 |
F-Score8
WACC11.9%
ROIC/WACC0.33
Cap/Depr(3y)146.08%
Cap/Depr(5y)140.5%
Cap/Sales(3y)7.4%
Cap/Sales(5y)7.78%
Profit Quality(3y)85.07%
Profit Quality(5y)97.31%
High Growth Momentum
Growth
EPS 1Y (TTM)59.72%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%35%
EPS Next Y17.36%
EPS Next 2Y23.14%
EPS Next 3Y12.14%
EPS Next 5YN/A
Revenue 1Y (TTM)15.16%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%12.68%
Revenue Next Year8.82%
Revenue Next 2Y7.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y280.47%
EBIT growth 3Y-24.35%
EBIT growth 5Y-2.32%
EBIT Next Year85.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y822.43%
FCF growth 3Y2.76%
FCF growth 5Y-4.62%
OCF growth 1Y81.94%
OCF growth 3Y-5.53%
OCF growth 5Y-0.58%