FARO Technologies, Inc.
Find Ratings Reports
-2.32 |
-2.41%
FARO TECHNOLOGIES INC's gross profit margin for the fourth quarter of its fiscal year 2020 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. FARO TECHNOLOGIES INC is extremely liquid. Currently, the Quick Ratio is 2.32 which clearly shows the ability to cover any short-term cash needs. FARO managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 8.52% 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 FY20 | Q4 FY19 |
|---|---|---|
| Net Sales ($mil) | 92.95 | 104.14 |
| EBITDA ($mil) | 9.19 | -7.14 |
| EBIT ($mil) | 5.58 | -11.45 |
| Net Income ($mil) | 27.41 | -49.7 |
| Balance Sheet | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 185.63 | 158.5 |
| Total Assets ($mil) | 525.59 | 486.84 |
| Total Debt ($mil) | 27.97 | 20.37 |
| Equity ($mil) | 360.3 | 331.99 |
| Profitability | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Gross Profit Margin | 58.51 | 47.28 |
| EBITDA Margin | 9.88 | -6.85 |
| Operating Margin | 6.0 | -11.0 |
| Sales Turnover | 0.58 | 0.8 |
| Return on Assets | 0.11 | -12.76 |
| Return on Equity | 0.17 | -18.72 |
| Debt | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Current Ratio | 3.0 | 3.04 |
| Debt/Capital | 0.07 | 0.06 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Shares outstanding (mil) | 17.99 | 17.58 |
| Div / share | 0.0 | 0.0 |
| EPS | 1.52 | -2.85 |
| Book value / share | 20.03 | 18.89 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 109218.0 | 76386.0 |
BUY. FARO TECHNOLOGIES INC's P/E ratio indicates a significant premium compared to an average of 64.13 for the Computer and Electronic Product Manufacturing subsector and a significant premium compared to the S&P 500 average of 38.99. To use another comparison, its price-to-book ratio of 4.61 indicates a premium versus the S&P 500 average of 4.05 and a discount versus the subsector average of 6.11. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FARO 9230.00 | Peers 144.08 | FARO 77.62 | Peers 25.41 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. FARO is trading at a significant premium 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. FARO is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| FARO 37.16 | Peers 27.85 | FARO 2.95 | Peers 1.16 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. FARO is trading at a significant premium to its peers. |
Premium. 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. FARO trades at a significant premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| FARO 4.61 | Peers 6.11 | FARO 100.28 | Peers 9.56 | |||||||||||||||||||||
|
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. FARO is trading at a discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. FARO is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| FARO 5.46 | Peers 7.09 | FARO -21.48 | Peers 1.14 | |||||||||||||||||||||
|
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. FARO is trading at a discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. FARO significantly trails its peers on the basis of sales growth. |
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