FORMFACTOR INC (FORM) Stock Fundamental Analysis
NASDAQ:FORM - Nasdaq - US3463751087 - Common Stock - Currency: USD
Taking everything into account, FORM scores 5 out of 10 in our fundamental rating. FORM was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. FORM has an excellent financial health rating, but there are some minor concerns on its profitability. FORM has a correct valuation and a medium 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.
FORM had positive earnings in each of the past 5 years.
In the past 5 years FORM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.69%, FORM is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
The Return On Equity of FORM (5.62%) is comparable to the rest of the industry.
FORM has a Return On Invested Capital (4.05%) which is in line with its industry peers.
FORM had an Average Return On Invested Capital over the past 3 years of 4.12%. This is significantly below the industry average of 10.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 5.62% | ||
| ROIC | 4.05% |
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
The Profit Margin of FORM (7.08%) is comparable to the rest of the industry.
FORM's Profit Margin has improved in the last couple of years.
The Operating Margin of FORM (6.06%) is comparable to the rest of the industry.
FORM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 40.42%, FORM is doing worse than 60.91% of the companies in the same industry.
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 | 6.06% | ||
| PM (TTM) | 7.08% | ||
| GM | 40.42% |
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
FORM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FORM has been reduced compared to 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 10.12. This indicates that FORM is financially healthy and has little risk of bankruptcy at the moment.
FORM has a better Altman-Z score (10.12) than 77.27% of its industry peers.
FORM has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.20, FORM belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that FORM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.01, FORM is doing good in the industry, outperforming 66.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 10.12 |
ROIC/WACC0.35
WACC11.61%
2.3 Liquidity
A Current Ratio of 4.44 indicates that FORM has no problem at all paying its short term obligations.
FORM's Current ratio of 4.44 is fine compared to the rest of the industry. FORM outperforms 64.55% of its industry peers.
FORM has a Quick Ratio of 3.56. This indicates that FORM is financially healthy and has no problem in meeting its short term obligations.
FORM has a Quick ratio of 3.56. This is in the better half of the industry: FORM outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.16% over the past year.
The Earnings Per Share has been growing slightly by 2.03% on average over the past years.
The Revenue has grown by 15.33% in the past year. This is quite good.
The Revenue has been growing slightly by 5.31% on average over the past years.
EPS 1Y (TTM)62.16%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%27.78%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%1.56%
3.2 Future
The Earnings Per Share is expected to grow by 18.19% on average over the next years. This is quite good.
Based on estimates for the next years, FORM will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
EPS Next Y10.11%
EPS Next 2Y17.35%
EPS Next 3Y13.99%
EPS Next 5Y18.19%
Revenue Next Year0.07%
Revenue Next 2Y3.55%
Revenue Next 3Y4.79%
Revenue Next 5Y7.45%
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 29.40, FORM can be considered very expensive at the moment.
68.18% of the companies in the same industry are more expensive than FORM, based on the Price/Earnings ratio.
FORM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.50.
A Price/Forward Earnings ratio of 22.28 indicates a rather expensive valuation of FORM.
68.18% of the companies in the same industry are more expensive than FORM, based on the Price/Forward Earnings ratio.
FORM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.4 | ||
| Fwd PE | 22.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FORM is valued a bit cheaper than 60.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FORM is valued a bit cheaper than 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.18 | ||
| EV/EBITDA | 28.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FORM does not grow enough to justify the current Price/Earnings ratio.
FORM's earnings are expected to grow with 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.91
PEG (5Y)14.47
EPS Next 2Y17.35%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
FORM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.28
-0.63 (-1.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.61%
Inst Owner Change0%
Ins Owners0.9%
Ins Owner Change2.23%
Market Cap2.72B
Analysts74.67
Price Target38.12 (8.05%)
Short Float %4.49%
Short Ratio5.26
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)5.01%
Min EPS beat(2)-9.04%
Max EPS beat(2)19.06%
EPS beat(4)3
Avg EPS beat(4)7.42%
Min EPS beat(4)-9.04%
Max EPS beat(4)19.06%
EPS beat(8)5
Avg EPS beat(8)4.66%
EPS beat(12)9
Avg EPS beat(12)10.55%
EPS beat(16)13
Avg EPS beat(16)10.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-1.17%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)1.78%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.53%
Revenue beat(16)6
Avg Revenue beat(16)-0.47%
PT rev (1m)-4.17%
PT rev (3m)-11.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.4 | ||
| Fwd PE | 22.28 | ||
| P/S | 3.55 | ||
| P/FCF | 42.18 | ||
| P/OCF | 25.17 | ||
| P/B | 2.82 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 28.79 |
EPS(TTM)1.2
EY3.4%
EPS(NY)1.58
Fwd EY4.49%
FCF(TTM)0.84
FCFY2.37%
OCF(TTM)1.4
OCFY3.97%
SpS9.94
BVpS12.53
TBVpS9.81
PEG (NY)2.91
PEG (5Y)14.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 5.62% | ||
| ROCE | 4.5% | ||
| ROIC | 4.05% | ||
| ROICexc | 5.7% | ||
| ROICexgc | 7.98% | ||
| OM | 6.06% | ||
| PM (TTM) | 7.08% | ||
| GM | 40.42% | ||
| FCFM | 8.41% |
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-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.2 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 128.57% | ||
| Cap/Sales | 5.69% | ||
| Interest Coverage | 121.24 | ||
| Cash Conversion | 134.51% | ||
| Profit Quality | 118.89% | ||
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.56 | ||
| Altman-Z | 10.12 |
F-Score7
WACC11.61%
ROIC/WACC0.35
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)62.16%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%27.78%
EPS Next Y10.11%
EPS Next 2Y17.35%
EPS Next 3Y13.99%
EPS Next 5Y18.19%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%1.56%
Revenue Next Year0.07%
Revenue Next 2Y3.55%
Revenue Next 3Y4.79%
Revenue Next 5Y7.45%
EBIT growth 1Y309.16%
EBIT growth 3Y-24.35%
EBIT growth 5Y-2.32%
EBIT Next Year28.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y111.4%
FCF growth 3Y2.76%
FCF growth 5Y-4.62%
OCF growth 1Y8.17%
OCF growth 3Y-5.53%
OCF growth 5Y-0.58%