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FORM

FormFactor NasdaqGS:FORM Stock Report

Last Price

US$35.72

Market Cap

US$2.8b

7D

0.4%

1Y

-7.6%

Updated

06 Aug, 2022

Data

Company Financials +
FORM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends0/6

FORM Stock 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

Price History & Performance

Summary of all time highs, changes and price drops for FormFactor
Historical stock prices
Current Share PriceUS$35.72
52 Week HighUS$47.48
52 Week LowUS$32.55
Beta1.2
1 Month Change1.59%
3 Month Change-9.23%
1 Year Change-7.58%
3 Year Change114.66%
5 Year Change161.69%
Change since IPO103.18%

Recent News & Updates

Jul 26

FormFactor Q2 2022 Earnings Preview

FormFactor (NASDAQ:FORM) is scheduled to announce Q2 earnings results on Wednesday, July 27th, after market close. The consensus EPS Estimate is $0.43 (+19.4% Y/Y) and the consensus Revenue Estimate is $203.14M (+8.0% Y/Y). Over the last 2 years, FORM has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 3 upward revisions and 2 downward. Revenue estimates have seen 2 upward revisions and 2 downward.

Jul 25
Does FormFactor (NASDAQ:FORM) Have A Healthy Balance Sheet?

Does FormFactor (NASDAQ:FORM) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

FORMUS SemiconductorUS Market
7D0.4%3.1%1.0%
1Y-7.6%-7.8%-12.9%

Return vs Industry: FORM matched the US Semiconductor industry which returned -7.8% over the past year.

Return vs Market: FORM exceeded the US Market which returned -12.8% over the past year.

Price Volatility

Is FORM's price volatile compared to industry and market?
FORM volatility
FORM Average Weekly Movement8.0%
Semiconductor Industry Average Movement8.4%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: FORM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: FORM's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19932,293Mike 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$2.79b
Earnings (TTM)US$106.51m
Revenue (TTM)US$796.04m

26.2x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FORM income statement (TTM)
RevenueUS$796.04m
Cost of RevenueUS$433.15m
Gross ProfitUS$362.89m
Other ExpensesUS$256.38m
EarningsUS$106.51m

Last Reported Earnings

Jun 25, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.36
Gross Margin45.59%
Net Profit Margin13.38%
Debt/Equity Ratio2.4%

How did FORM perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is FORM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FORM?

Other financial metrics that can be useful for relative valuation.

FORM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA15.7x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does FORM's PE Ratio compare to its peers?

FORM PE Ratio vs Peers
The above table shows the PE ratio for FORM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17x
ACLS Axcelis Technologies
17.3x7.1%US$2.6b
NVMI Nova
25.4x5.0%US$3.1b
PLAB Photronics
17.1x24.0%US$1.5b
COHU Cohu
15.5x-9.4%US$1.5b
FORM FormFactor
26.2x21.9%US$2.8b

Price-To-Earnings vs Peers: FORM is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the peer average (17x).


Price to Earnings Ratio vs Industry

How does FORM's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: FORM is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the US Semiconductor industry average (19.7x)


Price to Earnings Ratio vs Fair Ratio

What is FORM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FORM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.2x
Fair PE Ratio24x

Price-To-Earnings vs Fair Ratio: FORM is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the estimated Fair Price-To-Earnings Ratio (24x).


Share Price vs Fair Value

What is the Fair Price of FORM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FORM ($35.72) is trading below our estimate of fair value ($64)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


21.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FORM's forecast earnings growth (21.9% per year) is above the savings rate (1.9%).

Earnings vs Market: FORM's earnings (21.9% per year) are forecast to grow faster than the US market (12.8% per year).

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

Revenue vs Market: FORM's revenue (5.6% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: FORM's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FORM's Return on Equity is forecast to be low in 3 years time (16.2%).


Discover growth companies

Past Performance

How has FormFactor performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


20.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FORM has high quality earnings.

Growing Profit Margin: FORM's current net profit margins (13.4%) are higher than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: FORM has become profitable over the past 5 years, growing earnings by 20.8% per year.

Accelerating Growth: FORM's earnings growth over the past year (33.6%) exceeds its 5-year average (20.8% per year).

Earnings vs Industry: FORM earnings growth over the past year (33.6%) underperformed the Semiconductor industry 51%.


Return on Equity

High ROE: FORM's Return on Equity (12.8%) is considered low.


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Financial Health

How is FormFactor's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FORM's short term assets ($537.1M) exceed its short term liabilities ($159.6M).

Long Term Liabilities: FORM's short term assets ($537.1M) exceed its long term liabilities ($52.9M).


Debt to Equity History and Analysis

Debt Level: FORM has more cash than its total debt.

Reducing Debt: FORM's debt to equity ratio has reduced from 28.5% to 2.4% over the past 5 years.

Debt Coverage: FORM's debt is well covered by operating cash flow (814.7%).

Interest Coverage: FORM's interest payments on its debt are well covered by EBIT (1203x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FORM has not reported any payouts.


Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure


CEO

Mike Slessor (52 yo)

7.67yrs

Tenure

US$6,645,190

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.65M) is about average for companies of similar size in the US market ($USD6.58M).

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


Leadership Team

Experienced Management: FORM's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: FORM's board of directors are considered experienced (6.6 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
  • Implied Market Cap: US$2.788b
  • Shares outstanding: 78.06m
  • 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 Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/25
Annual Earnings2021/12/25


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.