Last Updated: 13 Nov 2024
Executive Summary
FormFactor Inc. (FORM) is a leading provider of probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions. The company has a strong financial position with a market capitalization of $3.25 billion, EBITDA of $79.6 million, and EPS of $1.73. FormFactor's stock price is currently trading at $42.14, below its 52-week high of $63.62. Analysts have a Buy rating on the stock with a target price of $53.89.
Company Overview
FormFactor was founded in 1993 and is headquartered in Livermore, California. The company has a global presence with operations in North America, Europe, and Asia. FormFactor's products are used in the development and manufacturing of semiconductors, which are essential components of electronic devices. The company's customers include leading semiconductor companies such as Intel, Samsung, and TSMC.
Fundamental Analysis
FormFactor's financial performance has been strong in recent years. The company's revenue has grown from $635.4 million in 2020 to $742.3 million in 2023. Net income has also increased from $47.6 million in 2020 to $79.6 million in 2023. FormFactor's gross margin is 41.5%, and its operating margin is 8.6%. The company has a strong balance sheet with $324.9 million in cash and equivalents and no debt.
Technical Analysis
FormFactor's stock price has been trading in a range between $36.11 and $63.62 over the past 52 weeks. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is at 45.8, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, FormFactor's stock price is likely to continue to trade in a range. The company is facing some headwinds from the global economic slowdown, but its strong financial position and exposure to the growing semiconductor industry should support its stock price.
Long Term Outlook
In the long term, FormFactor's stock price is likely to rise as the demand for semiconductors continues to grow. The company is a leader in the probe card market, and its products are essential for the development and manufacturing of semiconductors. FormFactor is also well-positioned to benefit from the growing trend towards automation in the semiconductor industry.
Analyst Recommendations
Analysts have a Buy rating on FormFactor's stock with a target price of $53.89. The consensus estimate for FormFactor's EPS in 2024 is $2.00, which would represent a 16% increase over the company's 2023 EPS.
