FORMFACTOR INC (FORM) Stock Fundamental Analysis
USA - NASDAQ:FORM - US3463751087 - Common Stock
56.4 USD
+1.45 (+2.64%)
56.8 USD
+0.4 (+0.71%)
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. FORM has an excellent financial health rating, but there are some minor concerns on its profitability. FORM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
FORM had positive earnings in the past year.
FORM had a positive operating cash flow in the past year.
In the past 5 years FORM has always been profitable.
Each year in the past 5 years FORM had a positive operating cash flow.
1.2 Ratios
FORM has a Return On Assets (3.40%) which is comparable to the rest of the industry.
FORM has a Return On Equity (4.05%) which is comparable to the rest of the industry.
FORM has a Return On Invested Capital of 3.56%. This is in the better half of the industry: FORM outperforms 60.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FORM is significantly below the industry average of 11.04%.
| 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
The Profit Margin of FORM (5.38%) is comparable to the rest of the industry.
FORM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.58%, FORM is in line with its industry, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Operating Margin of FORM has declined.
Looking at the Gross Margin, with a value of 38.41%, FORM is doing worse than 61.61% 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 | 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
FORM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, FORM has an improved debt to assets ratio.
2.2 Solvency
FORM has an Altman-Z score of 14.50. This indicates that FORM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.50, FORM belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
The Debt to FCF ratio of FORM is 2.34, which is a good value as it means it would take FORM, 2.34 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.34, FORM is doing good in the industry, outperforming 66.96% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that FORM is not too dependend on debt financing.
FORM's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. FORM outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 14.5 |
ROIC/WACC0.3
WACC11.79%
2.3 Liquidity
A Current Ratio of 4.30 indicates that FORM has no problem at all paying its short term obligations.
FORM has a better Current ratio (4.30) than 66.07% of its industry peers.
FORM has a Quick Ratio of 3.46. This indicates that FORM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.46, FORM is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.3 | ||
| Quick Ratio | 3.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.85% over the past year.
The Earnings Per Share has been growing slightly by 2.03% on average over the past years.
Looking at the last year, FORM shows a small growth in Revenue. The Revenue has grown by 2.29% in the last year.
The Revenue has been growing slightly by 5.31% on average over the past years.
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.
The Revenue is expected to grow by 7.45% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 51.27 indicates a quite expensive valuation of FORM.
FORM's Price/Earnings ratio is in line with the industry average.
FORM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.11.
The Price/Forward Earnings ratio is 35.22, which means the current valuation is very expensive for FORM.
FORM's Price/Forward Earnings ratio is in line with the industry average.
FORM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.27 | ||
| Fwd PE | 35.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FORM.
FORM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 816.25 | ||
| EV/EBITDA | 48.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FORM's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)10.8
PEG (5Y)25.24
EPS Next 2Y18%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
No dividends for FORM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
56.4
+1.45 (+2.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.2%
Inst Owner Change-1.9%
Ins Owners0.88%
Ins Owner Change6.3%
Market Cap4.35B
Revenue(TTM)759.31M
Net Income(TTM)40.85M
Analysts76
Price Target36.59 (-35.12%)
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)-4.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.27 | ||
| Fwd PE | 35.22 | ||
| P/S | 5.73 | ||
| P/FCF | 816.25 | ||
| P/OCF | 41.29 | ||
| P/B | 4.31 | ||
| P/tB | 5.43 | ||
| EV/EBITDA | 48.09 |
EPS(TTM)1.1
EY1.95%
EPS(NY)1.6
Fwd EY2.84%
FCF(TTM)0.07
FCFY0.12%
OCF(TTM)1.37
OCFY2.42%
SpS9.85
BVpS13.09
TBVpS10.38
PEG (NY)10.8
PEG (5Y)25.24
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 | 14.5 |
F-Score5
WACC11.79%
ROIC/WACC0.3
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.