NasdaqGS:FORM

Stock Analysis Report

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Executive Summary

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, and thermal sub-systems.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has FormFactor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FORM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.7%

FORM

0%

US Semiconductor

0%

US Market


1 Year Return

78.9%

FORM

0%

US Semiconductor

0%

US Market

Return vs Industry: FORM exceeded the US Semiconductor industry which returned 41.5% over the past year.

Return vs Market: FORM exceeded the US Market which returned 9.3% over the past year.


Shareholder returns

FORMIndustryMarket
7 Day6.7%0%0%
30 Day15.3%0%0%
90 Day17.8%0%0%
1 Year78.9%78.9%0%0%0%0%
3 Year70.7%70.7%0%0%0%0%
5 Year191.4%191.4%0%0%0%0%

Price Volatility Vs. Market

How volatile is FormFactor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

39.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FORM ($25.27) is trading above our estimate of fair value ($12.52)

Significantly Below Fair Value: FORM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FORM is poor value based on its PE Ratio (38.3x) compared to the Semiconductor industry average (35.5x).

PE vs Market: FORM is poor value based on its PE Ratio (38.3x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: FORM is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: FORM is good value based on its PB Ratio (2.9x) compared to the US Semiconductor industry average (3x).


Next Steps

Future Growth

How is FormFactor forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FORM's forecast earnings growth (23.8% per year) is above the savings rate (2.2%).

Earnings vs Market: FORM's earnings (23.8% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: FORM's revenue (4.7% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: FORM's revenue (4.7% 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


Next Steps

Past Performance

How has FormFactor performed over the past 5 years?

57.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FORM has high quality earnings.

Growing Profit Margin: FORM's current net profit margins (8.1%) are lower than last year (19.8%).


Past Earnings Growth Analysis

Earnings Trend: FORM has become profitable over the past 5 years, growing earnings by 57.9% per year.

Accelerating Growth: FORM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FORM had negative earnings growth (-53.7%) over the past year, making it difficult to compare to the Semiconductor industry average (-10.8%).


Return on Equity

High ROE: FORM's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is FormFactor's financial position?


Financial Position Analysis

Short Term Liabilities: FORM's short term assets ($426.3M) exceed its short term liabilities ($117.5M).

Long Term Liabilities: FORM's short term assets ($426.3M) exceed its long term liabilities ($65.5M).


Debt to Equity History and Analysis

Debt Level: FORM's debt to equity ratio (6.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if FORM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: FORM's debt is well covered by operating cash flow (309.3%).

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


Balance Sheet


Next Steps

Dividend

What is FormFactor's 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?

3.6yrs

Average management tenure


CEO

Mike Slessor (49yo)

5.5yrs

Tenure

US$4,049,718

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 ($USD4.05M) is about average for companies of similar size in the US market ($USD4.76M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Slessor
CEO & Director5.5yrsUS$4.05m0.42% $8.5m
Shai Shahar
Chief Financial Officer2.25yrsUS$1.56mno data
Jarek Kister
CTO and Senior VP of Technology R&D6.42yrsno datano data
Stan Finkelstein
Head of Investor Relationsno datano datano data
Jason Cohen
VP, General Counsel & Secretary4.83yrsno datano data
Amy Leong
Chief Marketing Officer and Senior VP of Mergers & Acquisitions3.17yrsno datano data
Robert Selley
Senior Vice President of Worldwide Sales & Service3.17yrsno datano data
Tim Mueller
Vice President of Global Human Resources3.92yrsno datano data
Matt Losey
Senior VP & GM of Probes Business Unit3.25yrsno datano data

3.6yrs

Average Tenure

49yo

Average Age

Experienced Management: FORM's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Slessor
CEO & Director5.5yrsUS$4.05m0.42% $8.5m
Lothar Maier
Independent Director13.58yrsUS$199.86k0.13% $2.5m
Edward Rogas
Independent Director9.67yrsUS$201.48k0.063% $1.3m
Thomas Dennis
Independent Chairman6.67yrsUS$211.48k0.051% $1.0m
Michael Zellner
Director Emeritusno dataUS$213.48kno data
Raymond Link
Independent Director4yrsUS$207.48k0.074% $1.5m
Richard DeLateur
Director Emeritusno dataUS$198.27kno data
Kelley Steven-Waiss
Independent Director4.83yrsUS$198.98k0.029% $577.4k
Sheri Rhodes
Independent Director0.50yrUS$93.38kno data
Rebeca Obregon-Jimenez
Independent Director0.75yrUS$115.41kno data

5.8yrs

Average Tenure

62yo

Average Age

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: FORM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

FormFactor, Inc.'s company bio, 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$2.008b
  • Shares outstanding: 76.16m
  • Website: https://www.formfactor.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FORMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2003
FMFDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2003

Biography

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, and thermal sub-systems. 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, mobile application processors, microprocessors, microcontrollers, graphic processors, radio frequency, analog, mixed signal, image sensors, electro-optical, DRAM 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. It also provides probing stations for semiconductor design engineers to capture and analyze data and integrated measurement systems that include test instrumentation, probe, cabling configurations, and software to enable fast, accurate, and on-wafer data collection for complex application and measurement needs; metrology systems for various applications including the development, production, and quality control of semiconductor products; and thermal subsystems that produce thermal chucks and other test systems used in probe stations. In addition, the company offers on-site probe card maintenance and service training, seminars, and telephone support services. FormFactor, Inc. markets and sells its products through direct sales force, manufacturers’ representatives, and distributors in the United States, Taiwan, South Korea, China, Japan, Europe, the Asia-Pacific, and internationally. The company was founded in 1993 and is headquartered in Livermore, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 02:56
End of Day Share Price2020/06/03 00:00
Earnings2020/03/28
Annual Earnings2019/12/28


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.