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 concerning outlook.


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

3.1%

FARO

4.9%

US Electronic

3.4%

US Market


1 Year Return

-14.9%

FARO

9.1%

US Electronic

5.4%

US Market

Return vs Industry: FARO underperformed the US Electronic industry which returned 9.1% over the past year.

Return vs Market: FARO underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

FAROIndustryMarket
7 Day3.1%4.9%3.4%
30 Day-12.0%-0.8%-1.0%
90 Day1.4%2.9%-0.4%
1 Year-14.9%-14.9%10.2%9.1%7.7%5.4%
3 Year38.0%38.0%54.3%50.0%46.2%36.8%
5 Year-7.1%-7.1%87.9%78.9%65.6%47.5%

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 compared to its fair value and its price relative to the market?

2.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: FARO ($47.97) is trading above our estimate of fair value ($38.52)

Significantly Undervalued: 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

Low 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 (2.2x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is FARO Technologies forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FARO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FARO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FARO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FARO's revenue (8.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FARO's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FARO's Return on Equity is forecast to be low in 3 years time (8.5%).


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

Earnings Trend: FARO is unprofitable, and losses have increased over the past 5 years at a rate of -57.6% 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 (58.6%).


Return on Equity

High ROE: FARO has a negative Return on Equity (-0.8%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FARO is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FARO is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is FARO Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: FARO's short term assets ($318.3M) exceeds its short term liabilities ($100.7M)

Long Term Liabilities: FARO's short term assets (318.3M) exceeds its long term liabilities (48.4M)


Debt to Equity History and Analysis

Debt Level: FARO is debt free.

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

Debt Coverage: FARO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FARO has no debt, therefore coverage of interest payments is not a concern.


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.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

1.6yrs

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

1.6yrs

Average Tenure

48.5yo

Average Age

Experienced Management: FARO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

6.0yrs

Average Tenure

61yo

Average Age

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


Insider Trading

Insider Buying: FARO 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: 5.7yrs
    • Compensation: US$678.80k
  • Allen Muhich (52yo)

    Chief Financial Officer

    • Tenure: 0.3yrs
  • Yazid Tohme (45yo)

    Chief R&D Officer

    • Tenure: 0.8yrs
  • Katrona Tyrrell (56yo)

    Chief People Officer

    • Tenure: 2.8yrs
    • Compensation: US$523.66k
  • Janet D'Anjou (43yo)

    Vice President of Finance and Corporate Development

    • Tenure: 2.5yrs
    • Compensation: US$294.19k

Board Members

  • John Caldwell (69yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$176.24k
  • Stephen Cole (67yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$196.24k
  • Jeff Graves (58yo)

    Independent Director

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

    President

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

    Independent 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: 10.3yrs
    • 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$831.755m
  • 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 Analysis2019/10/15 23:36
End of Day Share Price2019/10/15 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.