NasdaqGS:FORM

Stock Analysis Report

Executive Summary

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, integrated measurement systems, and thermal sub-systems, as well as provides related services.

Snowflake

Fundamentals

Excellent balance sheet and good value.


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


Market Performance


7 Day Return

3.7%

FORM

3.8%

US Semiconductor

2.3%

US Market


1 Year Return

54.3%

FORM

18.2%

US Semiconductor

5.6%

US Market

Return vs Industry: FORM exceeded the US Semiconductor industry which returned 18.2% over the past year.

Return vs Market: FORM exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

FORMIndustryMarket
7 Day3.7%3.8%2.3%
30 Day7.4%-0.03%-1.0%
90 Day31.3%4.4%-0.7%
1 Year54.3%54.3%20.5%18.2%7.9%5.6%
3 Year96.3%96.3%82.3%71.6%45.6%36.3%
5 Year210.0%210.0%140.3%115.5%65.8%47.6%

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?

6.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FORM ($20.34) is trading below our estimate of fair value ($21.64)

Significantly Undervalued: FORM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FORM is good value based on its PE Ratio (14.3x) compared to the Semiconductor industry average (27.7x).

PE vs Market: FORM is good value based on its PE Ratio (14.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: FORM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FORM is good value based on its PB Ratio (2.5x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

How is FormFactor forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FORM's earnings are forecast to decline over the next 3 years (-1.6% per year).

Earnings vs Market: FORM's earnings are forecast to decline over the next 3 years (-1.6% per year).

High Growth Earnings: FORM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FORM's revenue (7.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FORM's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FORM's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has FormFactor performed over the past 5 years?

77.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FORM has become profitable over the past 5 years, growing earnings by 77.1% per year.

Accelerating Growth: FORM's earnings growth over the past year (256.8%) exceeds its 5-year average (77.1% per year).

Earnings vs Industry: FORM earnings growth over the past year (256.8%) exceeded the Semiconductor industry -6.2%.


Return on Equity

High ROE: FORM's Return on Equity (17.4%) is considered low.


Return on Assets

ROA vs Industry: FORM has a higher Return on Assets than the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: FORM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is FormFactor's financial position?


Financial Position Analysis

Short Term Liabilities: FORM's short term assets ($347.6M) exceeds its short term liabilities ($102.8M)

Long Term Liabilities: FORM's short term assets (347.6M) exceeds its long term liabilities (50.7M)


Debt to Equity History and Analysis

Debt Level: FORM's debt to equity ratio (7.6%) 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 (203.7%).

Interest Coverage: FORM's interest payments on its debt are well covered by EBIT (74.2x coverage).


Balance Sheet

Inventory Level: FORM has a high level of physical assets or inventory.

Debt Coverage by Assets: FORM's debt is covered by short term assets (assets are 7.531810x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of FormFactor's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Mike Slessor (49yo)

4.8yrs

Tenure

US$3,684,365

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 ($USD3.68M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

2.9yrs

Average Tenure

49yo

Average Age

Experienced Management: FORM's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

64yo

Average Age

Experienced Board: FORM's board of directors are considered experienced (6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$313,75305 Sep 19
Michael Zellner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares18,000
Max PriceUS$17.43
SellUS$51,77721 Aug 19
Thomas Dennis
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares3,000
Max PriceUS$17.26
SellUS$93,02912 Jun 19
Richard DeLateur
EntityIndividual
Shares6,000
Max PriceUS$15.50
SellUS$18,80812 Jun 19
Kelley Steven-Waiss
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,200
Max PriceUS$15.67
SellUS$18,50414 Mar 19
Kelley Steven-Waiss
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,200
Max PriceUS$15.42
SellUS$127,89521 Feb 19
Thomas Dennis
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares8,000
Max PriceUS$15.99
SellUS$108,52215 Feb 19
Kelley Steven-Waiss
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$15.50

Ownership Breakdown


Management Team

  • Shai Shahar (47yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: US$1.91m
  • Mike Slessor (49yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$3.68m
  • January Kister

    CTO and Senior VP of Technology R&D

    • Tenure: 5.8yrs
  • Amy Leong

    Chief Marketing Officer and Senior VP of Mergers & Acquisitions

    • Tenure: 2.5yrs
  • Rob Selley (50yo)

    Senior Vice President of Worldwide Sales & Service

    • Tenure: 2.5yrs
  • Matt Losey

    Senior VP & GM of Probes Business Unit

    • Tenure: 2.6yrs
  • Jason Cohen

    VP, General Counsel & Secretary

    • Tenure: 4.2yrs
  • Tim Mueller

    Vice President of Global Human Resources

    • Tenure: 3.3yrs
  • Stan Finkelstein

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Lothar Maier (64yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$178.12k
  • Ed Rogas (79yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$177.00k
  • Tom Dennis (65yo)

    Independent Chairman

    • Tenure: 6yrs
    • Compensation: US$187.00k
  • Mike Zellner (63yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$189.00k
  • Ray Link (65yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$176.97k
  • Kelley Steven-Waiss (50yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$174.50k
  • Mike Slessor (49yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$3.68m
  • Rebeca Obregon-Jimenez

    Director

    • Tenure: 0.08yrs

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$1.529b
  • Shares outstanding: 75.19m
  • 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, integrated measurement systems, and thermal sub-systems, as well as provides related services. It operates  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:46
End of Day Share Price2019/10/16 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.