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 worldwide.

Rewards

Earnings are forecast to grow 157.22% per year

Risk Analysis

No risks detected for FARO from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

12.9%

FARO

-1.9%

US Electronic

-1.0%

US Market


1 Year Return

39.3%

FARO

6.1%

US Electronic

18.0%

US Market

Return vs Industry: FARO exceeded the US Electronic industry which returned 6.1% over the past year.

Return vs Market: FARO exceeded the US Market which returned 18% over the past year.


Shareholder returns

FAROIndustryMarket
7 Day12.9%-1.9%-1.0%
30 Day16.5%-6.0%0.6%
90 Day22.6%1.1%7.9%
1 Year39.3%39.3%7.2%6.1%20.4%18.0%
3 Year76.2%76.2%34.4%30.8%48.0%38.5%
5 Year3.1%3.1%67.4%59.3%72.2%53.3%

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?

3.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FARO ($61.84) is trading above our estimate of fair value ($61.67)

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


Price To Earnings Ratio

PE vs Industry: FARO is unprofitable, so we can't compare its PE Ratio to the 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 (3.3x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

137.3%

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 (1.7%).

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 (2.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FARO's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FARO's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has FARO Technologies performed over the past 5 years?

-70.7%

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 -70.7% 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 (13.1%).


Return on Equity

High ROE: FARO has a negative Return on Equity (-18.72%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FARO Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: FARO's short term assets ($322.2M) exceed its short term liabilities ($106.0M).

Long Term Liabilities: FARO's short term assets ($322.2M) exceed its long term liabilities ($48.9M).


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

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

Debt Coverage by Assets: Insufficient data to determine if FARO's debt is covered by short term assets.


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: FARO has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: FARO has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

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

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

2.0yrs

Average management tenure


CEO

Michael Burger (60yo)

0.7yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Jody Gale
Senior VP6yrsUS$678.80k0.015% $165.6k
Katrona Tyrrell
Chief People Officer3.1yrsUS$523.66kno data
Michael Burger
President0.7yrsno datano data
Allen Muhich
Chief Financial Officer0.6yrsno datano data
Janet D'Anjou
Vice President of Finance and Corporate Development2.8yrsUS$294.19kno data
Yazid Tohme
Chief R&D Officer1.1yrsno data0.0036% $39.1k

2.0yrs

Average Tenure

48.5yo

Average Age

Experienced Management: FARO's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Burger
President0.7yrsno datano data
John Caldwell
Independent Director18.1yrsUS$176.24k0.12% $1.4m
Stephen Cole
Independent Director20.1yrsUS$196.24k0.076% $828.4k
Jeffrey Graves
Independent Director2.2yrsUS$167.49k0.022% $241.4k
Yuval Wasserman
Independent Director2.2yrsUS$169.99k0.022% $241.4k
John Donofrio
Chairman & Lead Director0yrsUS$229.97k0.10% $1.1m
Lynn Brubaker
Independent Director10.6yrsUS$169.99k0.074% $801.2k

6.4yrs

Average Tenure

61yo

Average Age

Experienced Board: FARO's board of directors are considered experienced (6.4 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

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$1.087b
  • Shares outstanding: 17.58m
  • 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
FT1BRSE (Berne Stock Exchange)YesCommon StockCHCHFSep 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 Manufacturing, Construction BIM, and Emerging Verticals. The company offers FaroArm, a combination of a portable articulated measurement arm, a computer, and CAM2 software programs; and FARO ScanArm, a FaroArm equipped with a hard probe and non-contact laser line probe to measure products. It also provides FARO Design ScanArm 2.5C, a portable lightweight 3D ScanArm; FARO Prizm, a full-color laser line probe with 3D design and modeling software; FARO Laser Tracker that combines a portable laser measurement tool, a computer, and CAM2 software programs; and FARO Tracer, which projects a laser line onto a surface or object; and FARO Focus laser scanner to measure and collect a cloud of data points. In addition, the company offers FARO ScanPlan, a handheld mapper that captures 2D floor plans; and FARO Software, a proprietary computer-aided design-based measurement and laser scanner software. FARO Technologies, Inc. offers its products for manufacturing, industrial, architecture, surveying, building information modeling, construction, public safety forensics, cultural heritage, dental, and other applications. FARO Technologies, Inc. was founded in 1981 and is headquartered in Lake Mary, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:33
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.