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FORMFACTOR INC (FORM) Stock Fundamental Analysis

NASDAQ:FORM - Nasdaq - US3463751087 - Common Stock

42.9  -0.56 (-1.29%)

After market: 42.9 0 (0%)

Fundamental Rating

6

FORM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 109 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.


Dividend Valuation Growth Profitability Health

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5

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.
FORM had a positive operating cash flow in each of the past 5 years.
FORM Yearly Net Income VS EBIT VS OCF VS FCFFORM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M

1.2 Ratios

Looking at the Return On Assets, with a value of 11.77%, FORM is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Return On Equity of FORM (14.22%) is better than 75.00% of its industry peers.
With a Return On Invested Capital value of 3.92%, FORM perfoms like the industry average, outperforming 58.33% 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 11.96%.
Industry RankSector Rank
ROA 11.77%
ROE 14.22%
ROIC 3.92%
ROA(3y)6.9%
ROA(5y)6.7%
ROE(3y)8.54%
ROE(5y)8.46%
ROIC(3y)6.33%
ROIC(5y)6.94%
FORM Yearly ROA, ROE, ROICFORM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

1.3 Margins

The Profit Margin of FORM (18.29%) is better than 76.85% of its industry peers.
FORM's Profit Margin has declined in the last couple of years.
FORM has a Operating Margin of 6.02%. This is comparable to the rest of the industry: FORM outperforms 57.41% of its industry peers.
FORM's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 40.72%, FORM perfoms like the industry average, outperforming 41.67% 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 RankSector Rank
OM 6.02%
PM (TTM) 18.29%
GM 40.72%
OM growth 3Y-47.43%
OM growth 5Y-23.85%
PM growth 3Y3.16%
PM growth 5Y-8.75%
GM growth 3Y-2.01%
GM growth 5Y-0.33%
FORM Yearly Profit, Operating, Gross MarginsFORM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40

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8

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 more 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.
FORM Yearly Shares OutstandingFORM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
FORM Yearly Total Debt VS Total AssetsFORM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

FORM has an Altman-Z score of 11.57. This indicates that FORM is financially healthy and has little risk of bankruptcy at the moment.
FORM's Altman-Z score of 11.57 is amongst the best of the industry. FORM outperforms 80.56% of its industry peers.
FORM has a debt to FCF ratio of 0.27. This is a very positive value and a sign of high solvency as it would only need 0.27 years to pay back of all of its debts.
FORM's Debt to FCF ratio of 0.27 is amongst the best of the industry. FORM outperforms 83.33% 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 63.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.27
Altman-Z 11.57
ROIC/WACC0.27
WACC14.73%
FORM Yearly LT Debt VS Equity VS FCFFORM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.3 Liquidity

FORM has a Current Ratio of 4.76. This indicates that FORM is financially healthy and has no problem in meeting its short term obligations.
FORM has a better Current ratio (4.76) than 74.07% of its industry peers.
FORM has a Quick Ratio of 3.94. 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 3.94, FORM is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.76
Quick Ratio 3.94
FORM Yearly Current Assets VS Current LiabilitesFORM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 89.47% over the past year.
Measured over the past years, FORM shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.55% on average per year.
FORM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.31%.
Measured over the past years, FORM shows a small growth in Revenue. The Revenue has been growing by 4.59% on average per year.
EPS 1Y (TTM)89.47%
EPS 3Y-21.53%
EPS 5Y-6.55%
EPS Q2Q%59.09%
Revenue 1Y (TTM)12.31%
Revenue growth 3Y-1.49%
Revenue growth 5Y4.59%
Sales Q2Q%21.18%

3.2 Future

FORM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.09% yearly.
Based on estimates for the next years, FORM will show a quite strong growth in Revenue. The Revenue will grow by 10.23% on average per year.
EPS Next Y65.36%
EPS Next 2Y53.7%
EPS Next 3Y43.09%
EPS Next 5YN/A
Revenue Next Year15.78%
Revenue Next 2Y12.25%
Revenue Next 3Y10.23%
Revenue Next 5YN/A

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.
FORM Yearly Revenue VS EstimatesFORM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
FORM Yearly EPS VS EstimatesFORM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 39.72, the valuation of FORM can be described as expensive.
FORM's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.29, FORM is valued a bit more expensive.
FORM is valuated quite expensively with a Price/Forward Earnings ratio of 25.22.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FORM indicates a somewhat cheap valuation: FORM is cheaper than 67.59% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. FORM is around the same levels.
Industry RankSector Rank
PE 39.72
Fwd PE 25.22
FORM Price Earnings VS Forward Price EarningsFORM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

FORM's Enterprise Value to EBITDA is on the same level as the industry average.
FORM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FORM is cheaper than 62.96% of the companies in the same industry.
Industry RankSector Rank
P/FCF 66.29
EV/EBITDA 36.92
FORM Per share dataFORM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FORM's earnings are expected to grow with 43.09% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y53.7%
EPS Next 3Y43.09%

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0

5. Dividend

5.1 Amount

No dividends for FORM!.
Industry RankSector Rank
Dividend Yield N/A

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FORMFACTOR INC

NASDAQ:FORM (1/21/2025, 8:01:04 PM)

After market: 42.9 0 (0%)

42.9

-0.56 (-1.29%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-05 2025-02-05/amc
Inst Owners98.48%
Inst Owner Change0.03%
Ins Owners0.85%
Ins Owner Change4.02%
Market Cap3.32B
Analysts75
Price Target54.63 (27.34%)
Short Float %4.69%
Short Ratio4.09
Dividend
Industry RankSector 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)2
Avg EPS beat(2)9.82%
Min EPS beat(2)9.59%
Max EPS beat(2)10.05%
EPS beat(4)2
Avg EPS beat(4)0.59%
Min EPS beat(4)-10.01%
Max EPS beat(4)10.05%
EPS beat(8)6
Avg EPS beat(8)12.54%
EPS beat(12)10
Avg EPS beat(12)11.97%
EPS beat(16)13
Avg EPS beat(16)10.57%
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)1.78%
Revenue beat(4)2
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.78%
Revenue beat(8)5
Avg Revenue beat(8)0.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.13%
Revenue beat(16)7
Avg Revenue beat(16)0.09%
PT rev (1m)0%
PT rev (3m)-10.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.21%
Valuation
Industry RankSector Rank
PE 39.72
Fwd PE 25.22
P/S 4.48
P/FCF 66.29
P/OCF 36.58
P/B 3.48
P/tB 4.47
EV/EBITDA 36.92
EPS(TTM)1.08
EY2.52%
EPS(NY)1.7
Fwd EY3.96%
FCF(TTM)0.65
FCFY1.51%
OCF(TTM)1.17
OCFY2.73%
SpS9.58
BVpS12.33
TBVpS9.6
PEG (NY)0.61
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 11.77%
ROE 14.22%
ROCE 4.36%
ROIC 3.92%
ROICexc 6%
ROICexgc 8.76%
OM 6.02%
PM (TTM) 18.29%
GM 40.72%
FCFM 6.75%
ROA(3y)6.9%
ROA(5y)6.7%
ROE(3y)8.54%
ROE(5y)8.46%
ROIC(3y)6.33%
ROIC(5y)6.94%
ROICexc(3y)9.08%
ROICexc(5y)10.03%
ROICexgc(3y)15.15%
ROICexgc(5y)18.41%
ROCE(3y)7.03%
ROCE(5y)7.7%
ROICexcg growth 3Y-55.14%
ROICexcg growth 5Y-30.45%
ROICexc growth 3Y-50.85%
ROICexc growth 5Y-25.08%
OM growth 3Y-47.43%
OM growth 5Y-23.85%
PM growth 3Y3.16%
PM growth 5Y-8.75%
GM growth 3Y-2.01%
GM growth 5Y-0.33%
F-Score8
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.27
Debt/EBITDA 0.16
Cap/Depr 124.58%
Cap/Sales 5.48%
Interest Coverage 106.35
Cash Conversion 117.44%
Profit Quality 36.92%
Current Ratio 4.76
Quick Ratio 3.94
Altman-Z 11.57
F-Score8
WACC14.73%
ROIC/WACC0.27
Cap/Depr(3y)156.96%
Cap/Depr(5y)126.4%
Cap/Sales(3y)8.61%
Cap/Sales(5y)7.48%
Profit Quality(3y)76.15%
Profit Quality(5y)125.58%
High Growth Momentum
Growth
EPS 1Y (TTM)89.47%
EPS 3Y-21.53%
EPS 5Y-6.55%
EPS Q2Q%59.09%
EPS Next Y65.36%
EPS Next 2Y53.7%
EPS Next 3Y43.09%
EPS Next 5YN/A
Revenue 1Y (TTM)12.31%
Revenue growth 3Y-1.49%
Revenue growth 5Y4.59%
Sales Q2Q%21.18%
Revenue Next Year15.78%
Revenue Next 2Y12.25%
Revenue Next 3Y10.23%
Revenue Next 5YN/A
EBIT growth 1Y1163.48%
EBIT growth 3Y-48.21%
EBIT growth 5Y-20.35%
EBIT Next Year116.14%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.73%
FCF growth 3Y-57.71%
FCF growth 5Y-29.37%
OCF growth 1Y-39.45%
OCF growth 3Y-27.47%
OCF growth 5Y-1.22%