Measuring & Controlling Devices, NEC
FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven three-dimensional measurement, imaging, and realization solutions in North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific. It offers FaroArm, a combination of a portable articulated measurement arm, a computer, and CAM2 software programs; FARO Laser Tracker, a combination of a portable large-volume laser measurement tool, a computer, and CAM2 software programs; FARO Laser Projector, which provides a virtual template that operators and assemblers can use to quickly and accurate position components; and FARO Laser Scanning Portfolio to measure and collect a cloud of data points. The company also provides GeoSLAM ZEB Handheld 3D laser scanners; and FARO Software, a software solution that integrate with FARO hardware products to merge data and provide collaborative workflows and applications. It offers its products for metrology, reverse engineering, factory automation, building information modeling, public safety, and other applications. The company was founded in 1981 and is headquartered in Lake Mary, Florida.
Sector
Discounted Cash Flow Valuation of Faro Technologies Inc
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $19.54M | $19.4M | $19.25M | $19.11M | $18.97M | $18.83M | $18.69M | $18.55M | $18.41M | $18.28M | $18.14M | $181.4M |
DCF | $16.87M | $14.56M | $12.57M | $10.85M | $9.361M | $8.08M | $6.974M | $6.019M | $5.195M | $4.484M | $44.84M | |
Value | $139.8M |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 4% | 3.4% | -4% | 1.2% | -16% | 0.21% | -12% | -7.7% | -16% | -12% |
ROA | 3.2% | 3.1% | 1.3% | 1.1% | -12% | -5.8% | -1.8% | -4.6% | -9.8% | -7.4% |
ROE | 3.9% | 3.3% | -4.1% | 1.3% | -19% | 0.17% | -12% | -8.6% | -21% | -16% |
The average Net Margin over the past 5 years is -8.36%.
The trend of Net Margin over the past 5 years is -2.04%.
The average ROA over the past 5 years is -5.48%.
The trend of ROA over the past 5 years is -0.81%.
The average ROE over the past 5 years is -9.86%.
The trend of ROE over the past 5 years is -2.68%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | - | - | - | - | - | - | - | - | -12.67 | 3.73 |
Debt Equity | - | - | - | - | - | - | - | - | 0.27 | 0.28 |
MIN | ||||||||||
Graham Stability | - | - | -76% | 100% | -12K% | - | - | - | - | -12K% |
The Debt/FCF trailing twelve month is 3.73.
The trend of Debt/FCF over the past 5 years is -.
Graham’s Stability measure stands at -122.58.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
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Revenue | 1.4% | -2.3% | 5.7% | 3.8% | 0.19% |
Net Income | - | - | - | - | 49% |
Stockholders Equity | -3.3% | -6.5% | -9.3% | -14% | -1.4% |
FCF | - | - | - | - | -24% |
The Revenue CAGR over the past 5 years is -2.33%.
The trend of Revenue growth rate over the past 5 years is +0.19%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is +48.61%.
The Equity CAGR over the past 5 years is -6.54%.
The trend of Equity growth rate over the past 5 years is -1.42%.
The FCF CAGR over the past 5 years is +4.1%.
The trend of FCF growth rate over the past 5 years is -24.43%.