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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. FORM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FORM was profitable.
FORM had a positive operating cash flow in the past year.
FORM had positive earnings in each of the past 5 years.
Each year in the past 5 years FORM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.69%, FORM is doing good in the industry, outperforming 61.82% of the companies in the same industry.
FORM has a Return On Equity (5.62%) which 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 10.58%.
| 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
Looking at the Profit Margin, with a value of 7.08%, FORM is in line with its industry, outperforming 58.18% of the companies in the same industry.
FORM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.06%, FORM is in line with its industry, outperforming 55.45% of the companies in the same industry.
FORM's Operating Margin has declined in the last couple of years.
FORM has a Gross Margin of 40.42%. This is in the lower half of the industry: FORM underperforms 60.91% of its industry peers.
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
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.
The number of shares outstanding for FORM has been increased compared to 5 years ago.
The debt/assets ratio for FORM has been reduced compared to a year ago.
2.2 Solvency
FORM has an Altman-Z score of 9.84. This indicates that FORM is financially healthy and has little risk of bankruptcy at the moment.
FORM has a Altman-Z score of 9.84. This is in the better half of the industry: FORM outperforms 77.27% of its industry peers.
The Debt to FCF ratio of FORM is 0.20, which is an excellent value as it means it would take FORM, only 0.20 years of fcf income to pay off 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.
FORM has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
FORM's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. FORM outperforms 66.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 9.84 |
ROIC/WACC0.35
WACC11.5%
2.3 Liquidity
A Current Ratio of 4.44 indicates that FORM has no problem at all paying its short term obligations.
The Current ratio of FORM (4.44) is better than 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.
The Quick ratio of FORM (3.56) is better than 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.
FORM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.03% yearly.
Looking at the last year, FORM shows a quite strong growth in Revenue. The Revenue has grown by 15.33% in the last year.
FORM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.31% yearly.
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.
The Revenue is expected to grow by 7.45% on average over the next years.
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
A Price/Earnings ratio of 28.95 indicates a quite expensive valuation of FORM.
Based on the Price/Earnings ratio, FORM is valued a bit cheaper than 67.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.29, FORM is valued at the same level.
FORM is valuated rather expensively with a Price/Forward Earnings ratio of 21.94.
Based on the Price/Forward Earnings ratio, FORM is valued a bit cheaper than 65.45% 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 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 21.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FORM is valued a bit cheaper than the industry average as 62.73% of the companies are valued more expensively.
FORM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FORM is cheaper than 66.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.53 | ||
| EV/EBITDA | 27.67 |
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 13.99% in the coming years.
PEG (NY)2.86
PEG (5Y)14.25
EPS Next 2Y17.35%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
No dividends for FORM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.74
-1.44 (-3.98%)
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 Cap2.68B
Analysts74.67
Price Target38.12 (9.73%)
Short Float %4.46%
Short Ratio4.59
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)-6.82%
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 | 28.95 | ||
| Fwd PE | 21.94 | ||
| P/S | 3.49 | ||
| P/FCF | 41.53 | ||
| P/OCF | 24.78 | ||
| P/B | 2.77 | ||
| P/tB | 3.54 | ||
| EV/EBITDA | 27.67 |
EPS(TTM)1.2
EY3.45%
EPS(NY)1.58
Fwd EY4.56%
FCF(TTM)0.84
FCFY2.41%
OCF(TTM)1.4
OCFY4.04%
SpS9.94
BVpS12.53
TBVpS9.81
PEG (NY)2.86
PEG (5Y)14.25
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 | 9.84 |
F-Score7
WACC11.5%
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%