FormFactor helps semiconductor manufacturers test the integrated circuits (ICs) that power consumer mobile devices, as well as computing, automotive and other applications. The company was founded in 1993 and is based in Livermore, California.
FORM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Formfactor Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Formfactor Inc ranked in the 45th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Formfactor Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 84.34; that's higher than 92.16% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than only 9.35% of the free cash flow producing stocks we're observing.
FORM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 49.75% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FORM, try KEYS, CDW, G, INTC, and KLAC.
Since our last article about FormFactor (FORM), the supplier of advanced probe cards and systems for testing to the semiconductor industry, the stock is up 76%. Source: FinViz We argued that the company was set to grow for years, and we see no reason to change that assessment. Our thesis...
Shareholders Unite on Seeking Alpha | January 18, 2021
LIVERMORE, Calif., Jan. 15, 2021 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM) will report financial results for its 2020 fiscal fourth quarter on Wednesday, February 3, 2021, at 1:25 p.m. Pacific Time. The public is invited to listen to a live webcast of FormFactor's conference call on the Investors section of the company's web site at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The telephone replay will be available through February 10, 2021, 4:25 p.m. Pacific Time, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 9675656. Additionally, the replay will be available on the Investors section of our website, www.formf...
Companies Join Together to Offer a Proven Test System for Devices Used in Electric VehiclesLIVERMORE, Calif. and VILLACH, Austria, Dec. 14, 2020 (GLOBE NEWSWIRE) -- FormFactor, Inc. (NASDAQ:FORM), a leading electrical test and measurement supplier to the semiconductor industry, and T.I.P.S. Messtechnik GmbH (T.I.P.S.), a leading supplier of specialized high voltage, high current probe cards, announced today the companies have joined in a MeasureOne partnership to provide test and measurement solutions for high power devices. MeasureOne is a commitment between FormFactor and a select group of partners to deliver performance-validated, integrated solutions to address customers’ test and measurement applications. Power semiconductors are commonly used in electric and hybrid electric vehic...