Faro Technologies (FARO) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Faro Technologies ( FARO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Faro Technologies as such a stock due to the following factors:

  • FARO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.2 million.
  • FARO has traded 10,524 shares today.
  • FARO is trading at a new lifetime high.

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More details on FARO:

FARO Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and supports software-based three-dimensional measurement and imaging systems for manufacturing, industrial, building construction, and forensic applications. FARO has a PE ratio of 34.1. Currently there are 3 analysts that rate Faro Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Faro Technologies has been 133,300 shares per day over the past 30 days. Faro has a market cap of $1.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.16 and a short float of 3.7% with 3.54 days to cover. Shares are up 6.3% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Faro Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 20.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FARO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.37, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 122.6% when compared to the same quarter one year prior, rising from $5.04 million to $11.22 million.
  • FARO TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FARO TECHNOLOGIES INC reported lower earnings of $1.25 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($1.67 versus $1.25).
  • The gross profit margin for FARO TECHNOLOGIES INC is rather high; currently it is at 55.98%. Regardless of FARO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FARO's net profit margin of 13.64% compares favorably to the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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