company background image
FORM

FormFactorNasdaqGS:FORM Stock Report

Market Cap

US$2.8b

7D

1.0%

1Y

22.9%

Updated

19 Oct, 2021

Data

Company Financials +
FORM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance3/6
Financial Health6/6
Dividends0/6

FORM Overview

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions.

FormFactor Competitors

Applied Materials

NasdaqGS:AMAT

US$121.5b

Lam Research

NasdaqGS:LRCX

US$80.4b

Entegris

NasdaqGS:ENTG

US$17.5b

Brooks Automation

NasdaqGS:BRKS

US$7.7b

Price History & Performance

Summary of all time highs, changes and price drops for FormFactor
Historical stock prices
Current Share PriceUS$36.02
52 Week HighUS$27.77
52 Week LowUS$52.39
Beta1.42
1 Month Change-5.58%
3 Month Change-1.04%
1 Year Change22.94%
3 Year Change189.32%
5 Year Change241.75%
Change since IPO104.89%

Recent News & Updates

Oct 14
We Think FormFactor (NASDAQ:FORM) Can Manage Its Debt With Ease

We Think FormFactor (NASDAQ:FORM) Can Manage Its Debt With Ease

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Oct 02
Is There An Opportunity With FormFactor, Inc.'s (NASDAQ:FORM) 30% Undervaluation?

Is There An Opportunity With FormFactor, Inc.'s (NASDAQ:FORM) 30% Undervaluation?

How far off is FormFactor, Inc. ( NASDAQ:FORM ) from its intrinsic value? Using the most recent financial data, we'll...

Aug 26
Is Now The Time To Put FormFactor (NASDAQ:FORM) On Your Watchlist?

Is Now The Time To Put FormFactor (NASDAQ:FORM) On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Aug 12

FormFactor Hit By Volatile Results, But Leading-Edge Launches Make It Worth A Look

FormFactor has sold off on quarterly volatility as major customers like Intel buy fewer logic probe cards, but the underlying drivers for the business are still in place. Second quarter results were about in line on revenue and better on profits, but management guided to lower margins in the third quarter and flat card volumes. FormFactor will benefit from leading-edge fab investment among its major customers, but the benefits won't likely really show until 2H'22. Leveraged to increasing chip complexity, FormFactor looks more interesting at today's price.

Shareholder Returns

FORMUS SemiconductorUS Market
7D1.0%6.5%4.0%
1Y22.9%40.0%30.5%

Return vs Industry: FORM underperformed the US Semiconductor industry which returned 38.6% over the past year.

Return vs Market: FORM underperformed the US Market which returned 30% over the past year.

Price Volatility

Is FORM's price volatile compared to industry and market?
FORM volatility
FORM Beta1.42
Industry Beta1.24
Market Beta1

Stable Share Price: FORM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FORM's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19932,166Mike Slessorhttps://www.formfactor.com

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions. It operates in two segments, Probe Cards and Systems. The company offers probe cards to test various semiconductor device types, including systems on a chip products, mobile application processors, microprocessors, microcontrollers, and graphic processors, as well as radio frequency, analog, mixed signal, image sensor, electro-optical, dynamic random access memory, NAND flash memory, and NOR flash memory devices; and analytical probes, which are used for a range of applications, including device characterization, electrical simulation model development, failure analysis, and prototype design debugging for universities, research institutions, semiconductor integrated device manufacturers, semiconductor foundries, and fabless semiconductor companies.

FormFactor Fundamentals Summary

How do FormFactor's earnings and revenue compare to its market cap?
FORM fundamental statistics
Market CapUS$2.80b
Earnings (TTM)US$79.69m
Revenue (TTM)US$749.75m

35.1x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FORM income statement (TTM)
RevenueUS$749.75m
Cost of RevenueUS$441.56m
Gross ProfitUS$308.19m
ExpensesUS$228.50m
EarningsUS$79.69m

Last Reported Earnings

Jun 26, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)1.03
Gross Margin41.11%
Net Profit Margin10.63%
Debt/Equity Ratio3.8%

How did FORM perform over the long term?

See historical performance and comparison

Valuation

Is FormFactor undervalued compared to its fair value and its price relative to the market?

32.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FORM ($36.02) is trading below our estimate of fair value ($53.54)

Significantly Below Fair Value: FORM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FORM is poor value based on its PE Ratio (35.1x) compared to the US Semiconductor industry average (31.1x).

PE vs Market: FORM is poor value based on its PE Ratio (35.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: FORM is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: FORM is good value based on its PB Ratio (3.6x) compared to the US Semiconductor industry average (4.6x).


Future Growth

How is FormFactor forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FORM's forecast earnings growth (24.1% per year) is above the savings rate (2%).

Earnings vs Market: FORM's earnings (24.1% per year) are forecast to grow faster than the US market (15.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FORM's revenue (6.2% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: FORM's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FORM's Return on Equity is forecast to be high in 3 years time


Past Performance

How has FormFactor performed over the past 5 years?

33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FORM has high quality earnings.

Growing Profit Margin: FORM's current net profit margins (10.6%) are higher than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: FORM's earnings have grown significantly by 33.8% per year over the past 5 years.

Accelerating Growth: FORM's earnings growth over the past year (26.2%) is below its 5-year average (33.8% per year).

Earnings vs Industry: FORM earnings growth over the past year (26.2%) underperformed the Semiconductor industry 70.8%.


Return on Equity

High ROE: FORM's Return on Equity (10.4%) is considered low.


Financial Health

How is FormFactor's financial position?


Financial Position Analysis

Short Term Liabilities: FORM's short term assets ($497.5M) exceed its short term liabilities ($153.9M).

Long Term Liabilities: FORM's short term assets ($497.5M) exceed its long term liabilities ($65.1M).


Debt to Equity History and Analysis

Debt Level: FORM's debt to equity ratio (3.8%) is considered satisfactory.

Reducing Debt: FORM's debt to equity ratio has reduced from 35.1% to 3.8% over the past 5 years.

Debt Coverage: FORM's debt is well covered by operating cash flow (518.9%).

Interest Coverage: FORM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is FormFactor current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FORM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FORM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FORM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FORM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FORM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Mike Slessor (51 yo)

6.83yrs

Tenure

US$5,557,311

Compensation

Dr. Michael D. Slessor, also known as Mike, has been the Chief Executive Officer at FormFactor Inc. since December 28, 2014 and served as its President from October 2013 till December 2014. Dr. Slessor ser...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD5.56M) is about average for companies of similar size in the US market ($USD5.21M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: FORM's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: FORM's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

FormFactor, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: FormFactor, Inc.
  • Ticker: FORM
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$2.796b
  • Shares outstanding: 77.62m
  • Website: https://www.formfactor.com

Number of Employees


Location

  • FormFactor, Inc.
  • 7005 Southfront Road
  • Livermore
  • California
  • 94551
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 23:33
End of Day Share Price2021/10/19 00:00
Earnings2021/06/26
Annual Earnings2020/12/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.