FormFactor Inc.
Find Ratings ReportsFORMFACTOR INC's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. FORMFACTOR INC is extremely liquid. Currently, the Quick Ratio is 3.33 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 12.43% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 168.16 | 165.99 |
EBITDA ($mil) | 17.12 | 2.22 |
EBIT ($mil) | 8.59 | -7.57 |
Net Income ($mil) | 75.85 | -13.73 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 329.47 | 239.36 |
Total Assets ($mil) | 1106.79 | 1008.23 |
Total Debt ($mil) | 48.15 | 50.37 |
Equity ($mil) | 908.8 | 808.29 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 45.33 | 35.3 |
EBITDA Margin | 10.17 | 1.33 |
Operating Margin | 5.11 | -4.56 |
Sales Turnover | 0.6 | 0.74 |
Return on Assets | 7.44 | 5.03 |
Return on Equity | 9.07 | 6.28 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 4.38 | 3.17 |
Debt/Capital | 0.05 | 0.06 |
Interest Expense | 0.0 | 0.12 |
Interest Coverage | 0.0 | -65.29 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 77.38 | 76.92 |
Div / share | 0.0 | 0.0 |
EPS | 0.97 | -0.18 |
Book value / share | 11.75 | 10.51 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 479562.0 | 550249.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 53.34 for the Computer and Electronic Product Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 3.68 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, FORMFACTOR INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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FORM 40.80 | Peers 53.34 | FORM 51.80 | Peers 44.47 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. FORM is trading at a discount to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. FORM is trading at a premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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FORM 26.75 | Peers 26.06 | FORM NM | Peers 1.95 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. FORM is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. FORM's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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FORM 3.68 | Peers 23.59 | FORM 65.62 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. FORM is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, FORM is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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FORM 5.05 | Peers 14.13 | FORM -11.35 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. FORM is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. FORM significantly trails its peers on the basis of sales growth. |
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