FORRESTER RESEARCH INC (FORR) Stock Fundamental Analysis
NASDAQ:FORR - Nasdaq - US3465631097 - Common Stock - Currency: USD
FORR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. Both the profitability and financial health of FORR have multiple concerns. FORR has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year FORR was profitable.
FORR had a positive operating cash flow in the past year.
Of the past 5 years FORR 4 years were profitable.
FORR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
FORR has a worse Return On Assets (-19.63%) than 85.19% of its industry peers.
With a Return On Equity value of -58.57%, FORR is not doing good in the industry: 83.95% of the companies in the same industry are doing better.
FORR's Return On Invested Capital of 5.40% is in line compared to the rest of the industry. FORR outperforms 48.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FORR is significantly below the industry average of 12.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.63% | ||
| ROE | -58.57% | ||
| ROIC | 5.4% |
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's Operating Margin of 3.50% is in line compared to the rest of the industry. FORR outperforms 44.44% of its industry peers.
FORR's Operating Margin has improved in the last couple of years.
FORR has a better Gross Margin (57.98%) than 70.37% of its industry peers.
In the last couple of years the Gross Margin of FORR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.5% | ||
| PM (TTM) | N/A | ||
| GM | 57.98% |
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.
The number of shares outstanding for FORR has been increased compared to 5 years ago.
The debt/assets ratio for FORR is higher compared to a year ago.
2.2 Solvency
FORR has an Altman-Z score of 1.71. This is a bad value and indicates that FORR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.71, FORR is doing worse than 67.90% of the companies in the same industry.
The Debt to FCF ratio of FORR is 1.78, which is an excellent value as it means it would take FORR, only 1.78 years of fcf income to pay off all of its debts.
FORR's Debt to FCF ratio of 1.78 is fine compared to the rest of the industry. FORR outperforms 72.84% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that FORR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, FORR is in line with its industry, outperforming 59.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.63
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.98 indicates that FORR may have some problems paying its short term obligations.
The Current ratio of FORR (0.98) is worse than 76.54% of its industry peers.
A Quick Ratio of 0.98 indicates that FORR may have some problems paying its short term obligations.
The Quick ratio of FORR (0.98) is worse than 76.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for FORR have decreased strongly by -18.64% in the last year.
The Earnings Per Share has been decreasing by -2.16% on average over the past years.
Looking at the last year, FORR shows a decrease in Revenue. The Revenue has decreased by -9.61% in the last year.
FORR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.30% yearly.
EPS 1Y (TTM)-18.64%
EPS 3Y-11.35%
EPS 5Y-2.16%
EPS Q2Q%-21.43%
Revenue 1Y (TTM)-9.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y-1.3%
Sales Q2Q%-10.19%
3.2 Future
The Earnings Per Share is expected to grow by 2.59% on average over the next years.
The Revenue is expected to decrease by -1.86% on average over the next years.
EPS Next Y-12.92%
EPS Next 2Y2.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.61%
Revenue Next 2Y-1.86%
Revenue Next 3YN/A
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.
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 cheaply with a Price/Earnings ratio of 6.88.
Compared to the rest of the industry, the Price/Earnings ratio of FORR indicates a rather cheap valuation: FORR is cheaper than 95.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, FORR is valued rather cheaply.
A Price/Forward Earnings ratio of 6.40 indicates a rather cheap valuation of FORR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FORR indicates a rather cheap valuation: FORR is cheaper than 95.06% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FORR to the average of the S&P500 Index (21.60), we can say FORR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 6.4 |
4.2 Price Multiples
98.77% of the companies in the same industry are more expensive than FORR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FORR is valued cheaper than 86.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.61 | ||
| EV/EBITDA | 0.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FORR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.9
+0.07 (+0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners52.42%
Inst Owner Change-5.19%
Ins Owners40.04%
Ins Owner Change0.97%
Market Cap188.69M
Analysts45.71
Price Target14.28 (44.24%)
Short Float %2.5%
Short Ratio3.99
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)2
Avg EPS beat(2)21.73%
Min EPS beat(2)2.8%
Max EPS beat(2)40.66%
EPS beat(4)2
Avg EPS beat(4)5.79%
Min EPS beat(4)-15.55%
Max EPS beat(4)40.66%
EPS beat(8)5
Avg EPS beat(8)4.9%
EPS beat(12)8
Avg EPS beat(12)9.08%
EPS beat(16)12
Avg EPS beat(16)14.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-2.85%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-2.85%
Max Revenue beat(4)-0.3%
Revenue beat(8)1
Avg Revenue beat(8)-1.42%
Revenue beat(12)1
Avg Revenue beat(12)-2.1%
Revenue beat(16)3
Avg Revenue beat(16)-1.5%
PT rev (1m)-6.67%
PT rev (3m)-6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 6.4 | ||
| P/S | 0.45 | ||
| P/FCF | 9.61 | ||
| P/OCF | 8.48 | ||
| P/B | 1.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 0.95 |
EPS(TTM)1.44
EY14.55%
EPS(NY)1.55
Fwd EY15.63%
FCF(TTM)1.03
FCFY10.4%
OCF(TTM)1.17
OCFY11.79%
SpS22.15
BVpS7.74
TBVpS-1.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.63% | ||
| ROE | -58.57% | ||
| ROCE | 6.83% | ||
| ROIC | 5.4% | ||
| ROICexc | 14.25% | ||
| ROICexgc | N/A | ||
| OM | 3.5% | ||
| PM (TTM) | N/A | ||
| GM | 57.98% | ||
| FCFM | 4.65% |
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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 16.05% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 5.96 | ||
| Cash Conversion | 71.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.71 |
F-Score6
WACC8.58%
ROIC/WACC0.63
Cap/Depr(3y)24.01%
Cap/Depr(5y)29.15%
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)-18.64%
EPS 3Y-11.35%
EPS 5Y-2.16%
EPS Q2Q%-21.43%
EPS Next Y-12.92%
EPS Next 2Y2.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y-1.3%
Sales Q2Q%-10.19%
Revenue Next Year-5.61%
Revenue Next 2Y-1.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-29.43%
EBIT growth 3Y-28.38%
EBIT growth 5Y12.87%
EBIT Next Year6.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-14.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.27%
OCF growth 3YN/A
OCF growth 5YN/A