FORMFACTOR INC (FORM) Stock Fundamental Analysis
USA - NASDAQ:FORM - US3463751087 - Common Stock
52.25 USD
-1.97 (-3.63%)
52.5 USD
+0.25 (+0.48%)
FORM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While FORM has a great health rating, its profitability is only average at the moment. FORM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FORM was profitable.
In the past year FORM had a positive cash flow from operations.
Each year in the past 5 years FORM has been profitable.
Each year in the past 5 years FORM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.40%, FORM is in line with its industry, outperforming 59.82% of the companies in the same industry.
FORM has a Return On Equity (4.05%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.56%, FORM perfoms like the industry average, outperforming 58.93% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FORM is significantly below the industry average of 11.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 4.05% | ||
| ROIC | 3.56% |
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 has a Profit Margin of 5.38%. This is comparable to the rest of the industry: FORM outperforms 58.93% of its industry peers.
FORM's Profit Margin has improved in the last couple of years.
FORM has a Operating Margin (5.58%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FORM has declined.
FORM has a worse Gross Margin (38.41%) than 61.61% of its industry peers.
FORM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.58% | ||
| PM (TTM) | 5.38% | ||
| GM | 38.41% |
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 less shares outstanding than it did 1 year ago.
FORM has more shares outstanding than it did 5 years ago.
FORM has a better debt/assets ratio than last year.
2.2 Solvency
FORM has an Altman-Z score of 13.85. This indicates that FORM is financially healthy and has little risk of bankruptcy at the moment.
FORM's Altman-Z score of 13.85 is amongst the best of the industry. FORM outperforms 81.25% of its industry peers.
FORM has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as FORM would need 2.34 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.34, FORM is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
FORM has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FORM (0.01) is better than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 13.85 |
ROIC/WACC0.33
WACC10.72%
2.3 Liquidity
FORM has a Current Ratio of 4.30. This indicates that FORM is financially healthy and has no problem in meeting its short term obligations.
FORM has a Current ratio of 4.30. This is in the better half of the industry: FORM outperforms 66.07% of its industry peers.
A Quick Ratio of 3.46 indicates that FORM has no problem at all paying its short term obligations.
FORM has a Quick ratio of 3.46. This is in the better half of the industry: FORM outperforms 66.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.3 | ||
| Quick Ratio | 3.46 |
3. Growth
3.1 Past
FORM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.85%.
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.
The Revenue has been growing slightly by 2.29% in the past 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)1.85%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%-5.71%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%-2.52%
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 Y4.75%
EPS Next 2Y18%
EPS Next 3Y12.02%
EPS Next 5Y18.19%
Revenue Next Year1.8%
Revenue Next 2Y5.94%
Revenue Next 3Y4.3%
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.
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
With a Price/Earnings ratio of 47.50, FORM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, FORM is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
FORM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.06.
FORM is valuated quite expensively with a Price/Forward Earnings ratio of 32.63.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FORM is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FORM to the average of the S&P500 Index (32.73), we can say FORM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.5 | ||
| Fwd PE | 32.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FORM is on the same level as its industry peers.
FORM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 756.19 | ||
| EV/EBITDA | 45.46 |
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.
A more expensive valuation may be justified as FORM's earnings are expected to grow with 12.02% in the coming years.
PEG (NY)10
PEG (5Y)23.39
EPS Next 2Y18%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
No dividends for FORM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.25
-1.97 (-3.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.2%
Inst Owner Change-2.29%
Ins Owners0.88%
Ins Owner Change5.79%
Market Cap4.03B
Revenue(TTM)759.31M
Net Income(TTM)40.85M
Analysts76
Price Target36.59 (-29.97%)
Short Float %3.51%
Short Ratio3.04
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)9.03%
Min EPS beat(2)-11.93%
Max EPS beat(2)29.99%
EPS beat(4)2
Avg EPS beat(4)7.02%
Min EPS beat(4)-11.93%
Max EPS beat(4)29.99%
EPS beat(8)4
Avg EPS beat(8)3.81%
EPS beat(12)8
Avg EPS beat(12)10.7%
EPS beat(16)12
Avg EPS beat(16)10.73%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.65%
Max Revenue beat(2)0.94%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)0.94%
Revenue beat(8)3
Avg Revenue beat(8)-0.35%
Revenue beat(12)6
Avg Revenue beat(12)-0.12%
Revenue beat(16)7
Avg Revenue beat(16)-0.33%
PT rev (1m)8.3%
PT rev (3m)5.51%
EPS NQ rev (1m)15.52%
EPS NQ rev (3m)-8.3%
EPS NY rev (1m)12.37%
EPS NY rev (3m)-4.87%
Revenue NQ rev (1m)4.75%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.5 | ||
| Fwd PE | 32.63 | ||
| P/S | 5.31 | ||
| P/FCF | 756.19 | ||
| P/OCF | 38.25 | ||
| P/B | 3.99 | ||
| P/tB | 5.03 | ||
| EV/EBITDA | 45.46 |
EPS(TTM)1.1
EY2.11%
EPS(NY)1.6
Fwd EY3.06%
FCF(TTM)0.07
FCFY0.13%
OCF(TTM)1.37
OCFY2.61%
SpS9.85
BVpS13.09
TBVpS10.38
PEG (NY)10
PEG (5Y)23.39
Graham Number18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 4.05% | ||
| ROCE | 3.95% | ||
| ROIC | 3.56% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 6.38% | ||
| OM | 5.58% | ||
| PM (TTM) | 5.38% | ||
| GM | 38.41% | ||
| FCFM | 0.7% |
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%
ROICexgc growth 3Y-30.39%
ROICexgc 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-Score5
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | 0.14 | ||
| Cap/Depr | 270.68% | ||
| Cap/Sales | 13.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.76% | ||
| Profit Quality | 13.04% | ||
| Current Ratio | 4.3 | ||
| Quick Ratio | 3.46 | ||
| Altman-Z | 13.85 |
F-Score5
WACC10.72%
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)1.85%
EPS 3Y-10.05%
EPS 5Y2.03%
EPS Q2Q%-5.71%
EPS Next Y4.75%
EPS Next 2Y18%
EPS Next 3Y12.02%
EPS Next 5Y18.19%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y-0.26%
Revenue growth 5Y5.31%
Sales Q2Q%-2.52%
Revenue Next Year1.8%
Revenue Next 2Y5.94%
Revenue Next 3Y4.3%
Revenue Next 5Y7.45%
EBIT growth 1Y-5.09%
EBIT growth 3Y-24.35%
EBIT growth 5Y-2.32%
EBIT Next Year24.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y40.21%
FCF growth 3Y2.76%
FCF growth 5Y-4.62%
OCF growth 1Y38.24%
OCF growth 3Y-5.53%
OCF growth 5Y-0.58%
FORMFACTOR INC / FORM FAQ
What is the fundamental rating for FORM stock?
ChartMill assigns a fundamental rating of 5 / 10 to FORM.
What is the valuation status of FORMFACTOR INC (FORM) stock?
ChartMill assigns a valuation rating of 2 / 10 to FORMFACTOR INC (FORM). This can be considered as Overvalued.
What is the profitability of FORM stock?
FORMFACTOR INC (FORM) has a profitability rating of 4 / 10.
What is the financial health of FORMFACTOR INC (FORM) stock?
The financial health rating of FORMFACTOR INC (FORM) is 7 / 10.