June Fundamental Stock Pick: FormFactor Inc (NASDAQ:FORM)
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of FormFactor Inc (NASDAQ:FORM), it is a company with impressive financial health as well as an optimistic growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on FormFactor here.
Excellent balance sheet with reasonable growth potential
FORM’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. FORM appears to have made good use of debt, producing operating cash levels of 0.8x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For FormFactor, I’ve put together three pertinent aspects you should further research:
Historical Performance: What has FORM’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Valuation: What is FORM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether FORM is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FORM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
