FORRESTER RESEARCH INC (FORR) Stock Fundamental Analysis
NASDAQ:FORR - Nasdaq - US3465631097 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to FORR. FORR was compared to 82 industry peers in the Professional Services industry. Both the profitability and financial health of FORR have multiple concerns. FORR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FORR was profitable.
FORR had a positive operating cash flow in the past year.
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
FORR's Return On Assets of -1.35% is on the low side compared to the rest of the industry. FORR is outperformed by 70.89% of its industry peers.
FORR has a worse Return On Equity (-2.92%) than 72.15% of its industry peers.
The Return On Invested Capital of FORR (2.67%) is worse than 60.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.35% | ||
| ROE | -2.92% | ||
| ROIC | 2.67% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 2.35%, FORR is doing worse than 63.29% of the companies in the same industry.
In the last couple of years the Operating Margin of FORR has grown nicely.
With a decent Gross Margin value of 56.92%, FORR is doing good in the industry, outperforming 67.09% of the companies in the same industry.
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 | 2.35% | ||
| PM (TTM) | N/A | ||
| GM | 56.92% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FORR is destroying value.
FORR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
FORR has an Altman-Z score of 1.91. This is not the best score and indicates that FORR is in the grey zone with still only limited risk for bankruptcy at the moment.
FORR has a worse Altman-Z score (1.91) than 65.82% of its industry peers.
The Debt to FCF ratio of FORR is 6.36, which is on the high side as it means it would take FORR, 6.36 years of fcf income to pay off all of its debts.
FORR's Debt to FCF ratio of 6.36 is in line compared to the rest of the industry. FORR outperforms 44.30% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that FORR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.15, FORR is doing good in the industry, outperforming 64.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.3
WACC8.97%
2.3 Liquidity
A Current Ratio of 0.98 indicates that FORR may have some problems paying its short term obligations.
FORR has a worse Current ratio (0.98) than 75.95% of its industry peers.
A Quick Ratio of 0.98 indicates that FORR may have some problems paying its short term obligations.
FORR has a worse Quick ratio (0.98) than 75.95% 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 -22.63% 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 very negative growth in Revenue. The Revenue has decreased by -10.05% 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)-22.63%
EPS 3Y-11.35%
EPS 5Y-2.16%
EPS Q2Q%44%
Revenue 1Y (TTM)-10.05%
Revenue growth 3Y-4.36%
Revenue growth 5Y-1.3%
Sales Q2Q%-8.51%
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 3.87% on average per year.
FORR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.11% yearly.
EPS Next Y8.94%
EPS Next 2Y3.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.36%
Revenue Next 2Y-1.11%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.12 indicates a reasonable valuation of FORR.
89.87% of the companies in the same industry are more expensive than FORR, based on the Price/Earnings ratio.
FORR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 7.45, which indicates a rather cheap valuation of FORR.
91.14% of the companies in the same industry are more expensive than FORR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, FORR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 7.45 |
4.2 Price Multiples
FORR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FORR is cheaper than 94.94% of the companies in the same industry.
FORR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. FORR is more expensive than 62.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.18 | ||
| EV/EBITDA | 3.32 |
4.3 Compensation for Growth
FORR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y3.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FORR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.93
-0.27 (-2.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners54.75%
Inst Owner Change-98.13%
Ins Owners39.91%
Ins Owner Change0.08%
Market Cap226.67M
Analysts45.71
Price Target15.3 (28.25%)
Short Float %2.04%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.16%
Min EPS beat(2)-15.55%
Max EPS beat(2)-4.76%
EPS beat(4)1
Avg EPS beat(4)-14.11%
Min EPS beat(4)-36.16%
Max EPS beat(4)0.04%
EPS beat(8)4
Avg EPS beat(8)-1.63%
EPS beat(12)8
Avg EPS beat(12)9.07%
EPS beat(16)12
Avg EPS beat(16)21.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.32%
Min Revenue beat(4)-5.85%
Max Revenue beat(4)-0.57%
Revenue beat(8)1
Avg Revenue beat(8)-2.47%
Revenue beat(12)2
Avg Revenue beat(12)-1.96%
Revenue beat(16)5
Avg Revenue beat(16)-0.72%
PT rev (1m)-25%
PT rev (3m)-25%
EPS NQ rev (1m)5.1%
EPS NQ rev (3m)5.1%
EPS NY rev (1m)-5.42%
EPS NY rev (3m)-1.87%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-3.86%
Revenue NY rev (3m)-4.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 7.45 | ||
| P/S | 0.51 | ||
| P/FCF | 41.18 | ||
| P/OCF | 23.03 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.32 |
EPS(TTM)1.47
EY12.32%
EPS(NY)1.6
Fwd EY13.42%
FCF(TTM)0.29
FCFY2.43%
OCF(TTM)0.52
OCFY4.34%
SpS23.29
BVpS12.33
TBVpS-1.35
PEG (NY)0.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.35% | ||
| ROE | -2.92% | ||
| ROCE | 3.39% | ||
| ROIC | 2.67% | ||
| ROICexc | 4.27% | ||
| ROICexgc | N/A | ||
| OM | 2.35% | ||
| PM (TTM) | N/A | ||
| GM | 56.92% | ||
| FCFM | 1.24% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score4
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 6.36 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 23.94% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 4.23 | ||
| Cash Conversion | 34.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.91 |
F-Score4
WACC8.97%
ROIC/WACC0.3
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-22.63%
EPS 3Y-11.35%
EPS 5Y-2.16%
EPS Q2Q%44%
EPS Next Y8.94%
EPS Next 2Y3.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.05%
Revenue growth 3Y-4.36%
Revenue growth 5Y-1.3%
Sales Q2Q%-8.51%
Revenue Next Year-2.36%
Revenue Next 2Y-1.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-60.89%
EBIT growth 3Y-28.38%
EBIT growth 5Y12.87%
EBIT Next Year38.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-8.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.67%
OCF growth 3YN/A
OCF growth 5YN/A