NasdaqGS:FARO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.3%

NasdaqGS:FARO

1.2%

US Electronic

0.8%

US Market


1 Year Return

-16.1%

NasdaqGS:FARO

-1.0%

US Electronic

1.9%

US Market

FARO underperformed the Electronic industry which returned -0.1% over the past year.

FARO underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

FAROIndustryMarket
7 Day1.3%1.2%0.8%
30 Day7.3%7.7%3.4%
90 Day8.5%1.8%2.1%
1 Year-16.1%-16.1%-0.03%-1.0%4.2%1.9%
3 Year53.5%53.5%53.5%49.2%46.7%37.2%
5 Year4.8%4.8%71.0%62.5%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

2.49x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

FARO Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

FARO Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

FARO Technologies is loss making, we can't compare its value to the US Electronic industry average.

FARO Technologies is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for FARO Technologies, we can't assess if its growth is good value.


Price Based on Value of Assets

FARO Technologies is overvalued based on assets compared to the US Electronic industry average.


Next Steps

Future Growth

How is FARO Technologies expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

108.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

FARO Technologies's revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).

FARO Technologies's earnings are expected to grow significantly at over 20% yearly.

FARO Technologies's revenue growth is expected to exceed the United States of America market average.

FARO Technologies's earnings growth is expected to exceed the United States of America market average.

FARO Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

FARO Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has FARO Technologies performed over the past 5 years?

-57.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

FARO Technologies does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare FARO Technologies's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare FARO Technologies's 1-year growth to the US Electronic industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if FARO Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if FARO Technologies has efficiently used its assets last year compared to the US Electronic industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if FARO Technologies improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is FARO Technologies's financial position?


Financial Position Analysis

FARO Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

FARO Technologies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

FARO Technologies has no debt.

FARO Technologies has not taken on any debt in the past 5 years.

FARO Technologies has no debt, it does not need to be covered by operating cash flow.

FARO Technologies has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

FARO Technologies has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate FARO Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate FARO Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as FARO Technologies has not reported any payouts.

Unable to verify if FARO Technologies's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as FARO Technologies has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of FARO Technologies's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Michael Burger (60yo)

0.3yrs

Tenure

0

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 ...


Management Age and Tenure

1.5yrs

Average Tenure

48.5yo

Average Age

The average tenure for the FARO Technologies management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.0yrs

Average Tenure

61yo

Average Age

The tenure for the FARO Technologies board of directors is about average.


Insider Trading

FARO Technologies individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$150,63129 Jul 19
John Donofrio
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Director
Shares2,873
Max PriceUS$52.43

Ownership Breakdown


Management Team

  • Michael Burger (60yo)

    President

    • Tenure: 0.3yrs
  • Jody Gale (44yo)

    Senior VP

    • Tenure: 5.6yrs
    • Compensation: US$678.80k
  • Allen Muhich (52yo)

    Chief Financial Officer

    • Tenure: 0.2yrs
  • Yazid Tohme (45yo)

    Chief R&D Officer

    • Tenure: 0.7yrs
  • Katrona Tyrrell (56yo)

    Chief People Officer

    • Tenure: 2.7yrs
    • Compensation: US$523.66k
  • Janet D'Anjou (43yo)

    Vice President of Finance and Corporate Development

    • Tenure: 2.4yrs
    • Compensation: US$294.19k

Board Members

  • John Caldwell (69yo)

    Independent Director

    • Tenure: 17.7yrs
    • Compensation: US$176.24k
  • Stephen Cole (67yo)

    Independent Director

    • Tenure: 19.7yrs
    • Compensation: US$196.24k
  • Jeff Graves (58yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$167.49k
  • Michael Burger (60yo)

    President

    • Tenure: 0.3yrs
  • Yuval Wasserman (64yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$169.99k
  • John Donofrio (57yo)

    Chairman & Lead Director

    • Tenure: 0yrs
    • Compensation: US$229.97k
  • Lynn Brubaker (61yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$169.99k

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$932.321m
  • Shares outstanding: 17.34m
  • 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. It operates through three segments: 3D Manufacturing ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:35
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.