NasdaqGS:FARO

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Executive Summary

FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven three-dimensional (3D) measurement and imaging solutions worldwide. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FARO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FARO's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

FARO

-0.09%

US Electronic

0.9%

US Market


1 Year Return

31.7%

FARO

21.4%

US Electronic

22.1%

US Market

Return vs Industry: FARO exceeded the US Electronic industry which returned 21.4% over the past year.

Return vs Market: FARO exceeded the US Market which returned 22.1% over the past year.


Shareholder returns

FAROIndustryMarket
7 Day0.4%-0.09%0.9%
30 Day7.1%11.7%10.2%
90 Day13.4%21.9%9.7%
1 Year31.7%31.7%24.1%21.4%24.8%22.1%
3 Year34.8%34.8%37.2%31.4%48.6%38.7%
5 Year141.4%141.4%117.2%103.8%99.6%77.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FARO ($67.05) is trading below our estimate of fair value ($106.26)

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


Price To Earnings Ratio

PE vs Industry: FARO is unprofitable, so we can't compare its PE Ratio to the US Electronic industry average.

PE vs Market: FARO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FARO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FARO is overvalued based on its PB Ratio (3.8x) compared to the US Electronic industry average (2.2x).


Next Steps

Future Growth

How is FARO Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

106.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FARO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: FARO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FARO's is expected to become profitable in the next 3 years.

Revenue vs Market: FARO's revenue (14.5% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: FARO's revenue (14.5% 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 FARO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has FARO Technologies performed over the past 5 years?

-77.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FARO is currently unprofitable.

Growing Profit Margin: FARO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FARO is unprofitable, and losses have increased over the past 5 years at a rate of 77.9% per year.

Accelerating Growth: Unable to compare FARO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FARO is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-14.1%).


Return on Equity

High ROE: FARO has a negative Return on Equity (-24.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is FARO Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: FARO's short term assets ($284.7M) exceed its short term liabilities ($93.5M).

Long Term Liabilities: FARO's short term assets ($284.7M) exceed its long term liabilities ($44.9M).


Debt to Equity History and Analysis

Debt Level: FARO is debt free.

Reducing Debt: FARO has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FARO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FARO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 22.2% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate FARO'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 FARO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FARO'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 FARO'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?

1.5yrs

Average management tenure


CEO

Michael Burger (61 yo)

1.5yrs

Tenure

US$4,958,419

Compensation

Mr. Michael D. Burger serves as Director at FARO Technologies, Inc. since June 17, 2019. Mr. Burger has been President and Chief Executive Officer of FARO Technologies, Inc. since June 17, 2019. Mr. Burger...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD4.96M) is above average for companies of similar size in the US market ($USD2.60M).

Compensation vs Earnings: Insufficient data to compare Michael's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Burger
President1.5yrsUS$4.96m0.044%
$ 528.6k
Allen Muhich
Chief Financial Officer1.42yrsUS$1.80m0.012%
$ 142.4k
Katrona Tyrrell
Chief People Officer3.92yrsUS$580.13k0.0052%
$ 61.9k
Janet D'Anjou
Vice President of Finance and Corporate Development3.67yrsUS$294.19kno data
Kevin Beadle
Senior Vice President of Sales1yrno datano data

1.5yrs

Average Tenure

57yo

Average Age

Experienced Management: FARO's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Burger
President1.5yrsUS$4.96m0.044%
$ 528.6k
John Caldwell
Independent Director18.92yrsUS$174.98k0.12%
$ 1.5m
Stephen Cole
Independent Director20.92yrsUS$177.39k0.088%
$ 1.1m
Jeffrey Graves
Independent Director3yrsUS$167.48k0.035%
$ 413.6k
Yuval Wasserman
Independent Director3yrsUS$172.48k0.035%
$ 413.6k
John Donofrio
Independent Chairman of the Board1.67yrsUS$264.98k0.13%
$ 1.6m
Lynn Brubaker
Independent Director11.42yrsUS$172.48k0.085%
$ 1.0m

3.0yrs

Average Tenure

62yo

Average Age

Experienced Board: FARO's board of directors are considered experienced (3 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 been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

FARO Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FARO Technologies, Inc.
  • Ticker: FARO
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$1.196b
  • Shares outstanding: 17.84m
  • Website: https://www.faro.com

Number of Employees


Location

  • FARO Technologies, Inc.
  • 250 Technology Park
  • Lake Mary
  • Florida
  • 32746
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FARONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1997
FT1DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1997

Biography

FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven three-dimensional (3D) measurement and imaging solutions worldwide. It operates through three segments: 3D Man...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 23:25
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.