FORMFACTOR INC (FORM) Stock Fundamental Analysis
NASDAQ:FORM - Nasdaq - US3463751087 - Common Stock - Currency: USD
Overall FORM gets a fundamental rating of 5 out of 10. We evaluated FORM against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While FORM has a great health rating, its profitability is only average at the moment. FORM has a correct valuation and a medium 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
FORM's Return On Assets of 4.69% is fine compared to the rest of the industry. FORM outperforms 61.82% of its industry peers.
Looking at the Return On Equity, with a value of 5.62%, FORM is in line with its industry, outperforming 60.00% of the companies in the same industry.
FORM's Return On Invested Capital of 4.05% is in line compared to the rest of the industry. FORM outperforms 58.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FORM 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
FORM's Profit Margin of 7.08% is in line compared to the rest of the industry. FORM outperforms 58.18% of its industry peers.
In the last couple of years the Profit Margin of FORM has grown nicely.
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.
In the last couple of years the Operating Margin of FORM has declined.
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.
FORM's Gross Margin has been stable in the last couple of years.
| 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.
FORM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FORM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.19 indicates that FORM is not in any danger for bankruptcy at the moment.
The Altman-Z score of FORM (10.19) is better than 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.
FORM's Debt to FCF ratio of 0.20 is amongst the best of the industry. FORM outperforms 81.82% of its industry peers.
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 66.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 10.19 |
ROIC/WACC0.36
WACC11.33%
2.3 Liquidity
A Current Ratio of 4.44 indicates that FORM has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.44, FORM is doing good in the industry, outperforming 64.55% of the companies in the same industry.
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
FORM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.16%, which is quite impressive.
FORM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.03% yearly.
FORM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.33%.
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)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
Based on the Price/Earnings ratio of 30.15, the valuation of FORM can be described as expensive.
FORM's Price/Earnings ratio is a bit cheaper when compared to the industry. FORM is cheaper than 66.36% of the companies in the same industry.
FORM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
FORM is valuated rather expensively with a Price/Forward Earnings ratio of 22.84.
Based on the Price/Forward Earnings ratio, FORM is valued a bit cheaper than the industry average as 65.45% of the companies are valued more expensively.
FORM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.15 | ||
| Fwd PE | 22.84 |
4.2 Price Multiples
60.91% of the companies in the same industry are more expensive than FORM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FORM is valued a bit cheaper than the industry average as 66.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.25 | ||
| EV/EBITDA | 29.05 |
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)2.98
PEG (5Y)14.84
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 |
36.18
-0.18 (-0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.61%
Inst Owner Change-56.11%
Ins Owners0.9%
Ins Owner Change2.23%
Market Cap2.79B
Analysts74.67
Price Target38.12 (5.36%)
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 | 30.15 | ||
| Fwd PE | 22.84 | ||
| P/S | 3.64 | ||
| P/FCF | 43.25 | ||
| P/OCF | 25.81 | ||
| P/B | 2.89 | ||
| P/tB | 3.69 | ||
| EV/EBITDA | 29.05 |
EPS(TTM)1.2
EY3.32%
EPS(NY)1.58
Fwd EY4.38%
FCF(TTM)0.84
FCFY2.31%
OCF(TTM)1.4
OCFY3.87%
SpS9.94
BVpS12.53
TBVpS9.81
PEG (NY)2.98
PEG (5Y)14.84
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 | 10.19 |
F-Score7
WACC11.33%
ROIC/WACC0.36
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%