Formfactor Inc

Technology
Semiconductors
www.formfactor.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.26B
PE 32
Debt $14.47M
Cash $197.21M
EV $2.08B
FCF $79.10M

Earnings

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Sales & Net Margins

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Earnings	$69.61M
EBIT	$79.41M
ROE	7%
ROA	7%
FCF	$79.10M
Equity	$947.77M
Growth Stability	75%
PE	32.46
PEG	6.17
PB	2.38
P/FCF	28.57
P/S	2.96
Price/Cash	0.09
Debt/Equity	0.02
Debt/FCF	0.18
Net Margins	9%
Gross Margins	40%
Op. Margins	10%
Earnings CAGR	15%
Sales Growth YoY	13%
Sales Growth QoQ	-9%
Sales CAGR	8%
FCF CAGR	2%
Equity CAGR	13%
Earnings Stability	0.3
Earnings Growth YoY	-87%
Earnings Growth QoQ	-48%
Earnings CAGR 5Y	5%

Sales CAGR 5Y	1%
FCF CAGR 5Y	-32%
Equity CAGR 5Y	7%
Earnings CAGR 3Y	-3%
Sales CAGR 3Y	-3%
FCF CAGR 3Y	-23%
Equity CAGR 3Y	7%
Market Cap	$2.26B
Revenue	$763.60M
Dividend Yield	0%
Payout Ratio	0%
Assets	$1.15B
Total Debt	$14.47M
Cash	$197.21M
Shares Outstanding	77.11M
EV	2.08B
Earnings Score	18%
Moat Score	84%
Safety Score	96%
Final Score	66%
Working Capital	473.78M
Current Ratio	4.61
Gross Profit	$307.92M
Shares Growth 3y	-0%
Equity Growth QoQ	-1%
Equity Growth YoY	4%

Assets & ROA

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Stockholders Equity & ROE

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FormFactor Inc designs develops manufactures sells and supports semiconductor probe card products. The company operates in two reportable segments namely Probe Cards Segment and the Systems Segment. Sales of probe cards and analytical probes are included in the Probe Cards Segment while sales of probe stations and thermal sub-systems are included in the Systems Segment. Probe cards generate the maximum revenue from its operations. It offers multiple product lines which include analytical probes probe stations thermal sub-systems and related services.

SEC Filings

Direct access to Formfactor Inc (FORM) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 28
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Sep 24
- 10-Q Jun 25
- 10-Q Mar 26

Sector Comparison

How does Formfactor Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Formfactor Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 15%

Stability 30%

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Formfactor Inc Discounted Cash Flow

Fully customizable DCF calculator online for Formfactor Inc.

Years

Calculation mode

= $897M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$79M	$81M	$82M	$84M	$85M	$87M	$88M	$90M	$92M	$93M	$95M	$950M
DCF		$73M	$68M	$63M	$58M	$54M	$50M	$46M	$43M	$40M	$37M	$366M
Value	$897M

Competitiveness and MOAT

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	12/2024	TTM
Net Margins	-1%	-2%	7%	20%	7%	11%	11%	7%	12%	9%	9%
ROA	-	-8%	7%	5%	6%	9%	10%	6%	8%	7%	7%
ROE	-	-2%	9%	18%	6%	11%	10%	6%	9%	7%	7%

Net Margins (9.12%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

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	12/2024	TTM
Debt over FCF	-	44.87	1.82	1.94	1.01	0.39	0.46	0.25	1.81	0.18	0.18
Debt over Equity	0	0.66	0.27	0.16	0.16	0.06	0.04	0.02	0.02	0.02	0.02
Growth Stability	-	-	-	100%	85%	100%	100%	75%	100%	96%	75%

Good Debt/FCF ratio (0.18)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.02)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (75%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	36%	43%	-3%	11%	18%	11%	-3%	-11%	15%	1%
Earnings YoY growth	-	331%	-724%	154%	-62%	100%	7%	-40%	62%	-16%	5%
Equity YoY growth	-	36%	14%	26%	10%	16%	10%	-1%	12%	4%	7%
FCF YoY growth	-	-79%	1K%	-29%	105%	13%	-36%	-9%	-87%	822%	-32%