FORRESTER RESEARCH INC (FORR) Stock Fundamental Analysis
USA - NASDAQ:FORR - US3465631097 - Common Stock
10.49 USD
+0.13 (+1.21%)
10.49 USD
0 (0%)
FORR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. While FORR seems to be doing ok healthwise, there are quite some concerns on its profitability. FORR is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FORR was profitable.
In the past year FORR had a positive cash flow from operations.
FORR had positive earnings in 4 of the past 5 years.
Of the past 5 years FORR 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FORR (-20.35%) is worse than 82.93% of its industry peers.
Looking at the Return On Equity, with a value of -55.61%, FORR is doing worse than 80.49% of the companies in the same industry.
The Return On Invested Capital of FORR (3.58%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FORR is significantly below the industry average of 12.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.35% | ||
| ROE | -55.61% | ||
| ROIC | 3.58% |
ROA(3y)0.99%
ROA(5y)1.64%
ROE(3y)2.87%
ROE(5y)5.23%
ROIC(3y)6.15%
ROIC(5y)6.29%
1.3 Margins
FORR has a Operating Margin (2.63%) which is in line with its industry peers.
In the last couple of years the Operating Margin of FORR has grown nicely.
Looking at the Gross Margin, with a value of 57.31%, FORR is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
FORR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.63% | ||
| PM (TTM) | N/A | ||
| GM | 57.31% |
OM growth 3Y-25.12%
OM growth 5Y14.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.78%
GM growth 5Y0.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FORR is destroying value.
FORR has less shares outstanding than it did 1 year ago.
FORR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FORR has a worse debt to assets ratio.
2.2 Solvency
FORR has an Altman-Z score of 1.79. This is a bad value and indicates that FORR is not financially healthy and even has some risk of bankruptcy.
FORR has a worse Altman-Z score (1.79) than 67.07% of its industry peers.
The Debt to FCF ratio of FORR is 1.83, which is an excellent value as it means it would take FORR, only 1.83 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.83, FORR is doing good in the industry, outperforming 67.07% of the companies in the same industry.
FORR has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
FORR's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. FORR outperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.43
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.09 indicates that FORR should not have too much problems paying its short term obligations.
FORR has a Current ratio of 1.09. This is in the lower half of the industry: FORR underperforms 68.29% of its industry peers.
FORR has a Quick Ratio of 1.09. This is a normal value and indicates that FORR is financially healthy and should not expect problems in meeting its short term obligations.
FORR's Quick ratio of 1.09 is on the low side compared to the rest of the industry. FORR is outperformed by 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for FORR have decreased strongly by -15.89% in the last year.
FORR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.16% yearly.
Looking at the last year, FORR shows a decrease in Revenue. The Revenue has decreased by -9.11% in the last year.
Measured over the past years, FORR shows a decrease in Revenue. The Revenue has been decreasing by -1.30% on average per year.
EPS 1Y (TTM)-15.89%
EPS 3Y-11.35%
EPS 5Y-2.16%
EPS Q2Q%-25%
Revenue 1Y (TTM)-9.11%
Revenue growth 3Y-4.36%
Revenue growth 5Y-1.3%
Sales Q2Q%-8.34%
3.2 Future
Based on estimates for the next years, FORR will show a small growth in Earnings Per Share. The EPS will grow by 0.65% on average per year.
FORR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.38% yearly.
EPS Next Y-11.18%
EPS Next 2Y0.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.12%
Revenue Next 2Y-2.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FORR is valuated reasonably with a Price/Earnings ratio of 8.26.
Based on the Price/Earnings ratio, FORR is valued cheaper than 91.46% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, FORR is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.04, the valuation of FORR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FORR indicates a rather cheap valuation: FORR is cheaper than 93.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, FORR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 7.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FORR indicates a rather cheap valuation: FORR is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FORR indicates a rather cheap valuation: FORR is cheaper than 84.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.46 | ||
| EV/EBITDA | 0.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FORR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.49
+0.13 (+1.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners48.66%
Inst Owner Change-1.99%
Ins Owners40.04%
Ins Owner Change0.82%
Market Cap200.15M
Analysts45.71
Price Target12.24 (16.68%)
Short Float %1.92%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)20.33%
Min EPS beat(2)0%
Max EPS beat(2)40.66%
EPS beat(4)2
Avg EPS beat(4)6.98%
Min EPS beat(4)-15.55%
Max EPS beat(4)40.66%
EPS beat(8)4
Avg EPS beat(8)1.28%
EPS beat(12)7
Avg EPS beat(12)6.3%
EPS beat(16)11
Avg EPS beat(16)13.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-2.85%
Max Revenue beat(2)-0.44%
Revenue beat(4)0
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-2.85%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-1.85%
Revenue beat(12)1
Avg Revenue beat(12)-2.05%
Revenue beat(16)2
Avg Revenue beat(16)-1.74%
PT rev (1m)0%
PT rev (3m)-14.29%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-17.12%
EPS NY rev (1m)0.79%
EPS NY rev (3m)1.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 7.04 | ||
| P/S | 0.49 | ||
| P/FCF | 10.46 | ||
| P/OCF | 9.3 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 0.76 |
EPS(TTM)1.27
EY12.11%
EPS(NY)1.49
Fwd EY14.2%
FCF(TTM)1
FCFY9.56%
OCF(TTM)1.13
OCFY10.76%
SpS21.6
BVpS8.36
TBVpS-0.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.35% | ||
| ROE | -55.61% | ||
| ROCE | 4.53% | ||
| ROIC | 3.58% | ||
| ROICexc | 8.23% | ||
| ROICexgc | N/A | ||
| OM | 2.63% | ||
| PM (TTM) | N/A | ||
| GM | 57.31% | ||
| FCFM | 4.64% |
ROA(3y)0.99%
ROA(5y)1.64%
ROE(3y)2.87%
ROE(5y)5.23%
ROIC(3y)6.15%
ROIC(5y)6.29%
ROICexc(3y)9.7%
ROICexc(5y)9.67%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.78%
ROCE(5y)7.96%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-23.98%
ROICexc growth 5Y23.19%
OM growth 3Y-25.12%
OM growth 5Y14.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.78%
GM growth 5Y0.14%
F-Score6
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.83 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 7.3% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 4.53 | ||
| Cash Conversion | 49.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.79 |
F-Score6
WACC8.26%
ROIC/WACC0.43
Cap/Depr(3y)17.91%
Cap/Depr(5y)25.5%
Cap/Sales(3y)1%
Cap/Sales(5y)1.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.89%
EPS 3Y-11.35%
EPS 5Y-2.16%
EPS Q2Q%-25%
EPS Next Y-11.18%
EPS Next 2Y0.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.11%
Revenue growth 3Y-4.36%
Revenue growth 5Y-1.3%
Sales Q2Q%-8.34%
Revenue Next Year-6.12%
Revenue Next 2Y-2.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20%
EBIT growth 3Y-28.38%
EBIT growth 5Y12.87%
EBIT Next Year7.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y30.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.54%
OCF growth 3YN/A
OCF growth 5YN/A