FormFactor, Inc. (NASDAQ:FORM) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of FORM, it is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on FormFactor here.
Solid track record with excellent balance sheet
Over the past few years, FORM has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did FORM outperformed its past performance, its growth also exceeded the Semiconductor industry expansion, which generated a 14% earnings growth. This is an notable feat for the company. FORM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that FORM has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. FORM seems to have put its debt to good use, generating operating cash levels of 1.39x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For FormFactor, I've compiled three pertinent aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for FORM’s future growth? Take a look at our free research report of analyst consensus for FORM’s outlook.
- 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!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.