FormFactor Inc (FORM) stock analysis
Close on Nov 11, 2026Market cap $7.48BP/E 43.7Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed12 of 30 checks passed
FormFactor passes 12 of the 30 checks behind our score; 7 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 3/6
- Past performance
- 4/6
- Financial health
- 5/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 20.2%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 1.0% of shareholders' equity, under the 40% we consider low.
Earnings growth accelerating
Net income grew 325% over the last twelve months, against a 5-year average of -7.1% a year.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 2263% of total debt.
What to watch
Margin of safety under 20%
The price is 25.9% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $95.78 is above our fair value estimate of $76.07.
Return on equity under 15%
Return on equity was 15.8% over the last twelve months and averaged 7.9% over five years; we look for 15% on both.
Earnings shrank over 5 years
Net income shrank 7.1% a year on average over the last five fiscal years.
Valuation0/6
P/E above its 5-year median
FormFactor's P/E of 43.7 is above its own 5-year median of 43.1.
P/E above the industry
FormFactor's P/E of 43.7 is above the Electronic Components and Accessories median of 34.6.
EV/EBITDA above its 5-year median
FormFactor's EV/EBITDA of 39.5 is above its 5-year median of 37.2.
P/B above the industry
FormFactor's price-to-book of 6.33 is above the Electronic Components and Accessories median of 3.49.
Trading above fair value
The share price of $95.78 is above our fair value estimate of $76.07.
Margin of safety under 20%
The price is 25.9% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing under 10% a year
Revenue grew 1.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew 2.0% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 325% over the last twelve months, against a 5-year average of -7.1% a year.
Growing faster than the industry
Revenue grew 29.1% over the last twelve months; the Electronic Components and Accessories median is 17.3%.
Guidance issued
The latest outlook (fourth quarter ending December 26, 2026 Revenue, Oct 28, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin improving
Gross margin was 47.1% over the last twelve months, against 38.4% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 15.8% over the last twelve months and averaged 7.9% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 20.2%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
FormFactor's return on equity of 15.8% is above the Electronic Components and Accessories median of 4.8%.
Earnings shrank over 5 years
Net income shrank 7.1% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 17.7% over the last twelve months, against a 5-year average of 9.2%.
Net margin above the industry
FormFactor's net margin of 17.7% is above the Electronic Components and Accessories median of 3.0%.
Financial health5/6
Low debt
Debt is 1.0% of shareholders' equity, under the 40% we consider low.
Debt falling against equity
Debt to equity fell from 4.6% five years ago to 1.0%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 2263% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 3.68 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 19.79; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
FormFactor has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$76.07
The share price is 26% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 38.9× | 43.1× | 34.6× | $85.10 | 47% |
| EV/EBITDA | 29.3× | 37.2× | 21.3× | $72.35 | 41% |
| P/B | 3.5× | 3.5× | 3.5× | $52.95 | 12% |
| Earnings powerleft out, too far from the others | 13.4% cost of equity | – | – | $3.16 | – |
| Fair value | $76.07 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 43.1
- Electronic Components and Accessories median 34.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $238.41M
- Value traded per 1% price move
- $32.50M
Downside
High risk
- Typical loss in a bad month
- 39.2%
- Volatility (annualized)
- 89%
- Sharpe ratio, 1 year
- 0.84
- Beta to the S&P 500 (5Y)
- 1.71
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +2.8% | +1.6% | +2.5% | +10.8% | |
| Gross profit | +0.3% | +1.4% | +1.4% | +13.7% | |
| Operating income | -11.9% | +1.3% | -7.4% | – | |
| Net income | -21.9% | +2.3% | -7.1% | – | |
| EPS, diluted | -22.5% | +2.0% | -7.0% | – | |
| Free cash flow | -85.2% | -43.9% | -36.5% | -8.2% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | -1.9% | 11.3% | 5.5% | |
| Return on assets | -1.4% | 8.7% | 4.6% | |
| Current ratio | 3.08 | 3.15 | 4.50 | |
| Debt to equity | 0.34 | 0.05 | 0.01 | |
| Interest coverage | -20.0× | 97.0× | 109.5× | |
| Inventory turnover | 6.5× | 4.4× | 4.5× | |
| Capex to revenue | 3.0% | 8.1% | 13.2% | |
| Diluted shares | 65M | 79M | 78M |
Where the cash went
Fiscal 2021 to 2025, five years combined
FormFactor generated $568.68M from operations and spent $535.58M on capital expenditure, dividends and share buybacks. 62% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 6.9% | 0.66× | 1.20× | 5.5% |
| FY2024 | 9.1% | 0.68× | 1.21× | 7.5% |
| FY2023 | 12.4% | 0.63× | 1.23× | 9.6% |
| FY2022 | 6.8% | 0.74× | 1.25× | 6.2% |
| FY2021 | 10.9% | 0.78× | 1.27× | 10.8% |
| FY2020 | 11.3% | 0.77× | 1.30× | 11.3% |
| FY2019 | 6.7% | 0.75× | 1.28× | 6.4% |
| FY2018 | 19.6% | 0.77× | 1.32× | 20.0% |
| FY2017 | 7.5% | 0.87× | 1.47× | 9.5% |
| FY2016 | -1.7% | 0.80× | 1.38× | -1.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$54.36M
- Cash generatingOperating cash flow above zero$115.40M
- Return on assets improvedROA up on the prior year6.3% → 4.7%
- Earnings backed by cashOperating cash flow above net income$115.40M vs $54.36M
- Less leverageLong-term debt to assets fell1.1% → 0.9%
- Better liquidityCurrent ratio rose4.61 → 4.50
- No dilutionShare count did not rise78M → 78M
- Gross margin improvedGross margin up on the prior year40.33% → 39.34%
- More efficientAsset turnover rose0.69 → 0.68
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