Expert Outlook: FormFactor Through The Eyes Of 4 Analysts

During the last three months, 4 analysts shared their evaluations of FormFactor FORM, revealing diverse outlooks from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $47.75, along with a high estimate of $53.00 and a low estimate of $42.00. Witnessing a positive shift, the current average has risen by 16.46% from the previous average price target of $41.00.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive FormFactor is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to FormFactor. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of FormFactor compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for FormFactor's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of FormFactor's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on FormFactor analyst ratings.

About FormFactor

FormFactor Inc designs, develops, manufactures, sells, and supports semiconductor probe card products. The company operates in two reportable segments namely Probe Cards Segment and the Systems Segment. Sales of probe cards and analytical probes are included in the Probe Cards Segment, while sales of probe stations and thermal sub-systems are included in the Systems Segment. Probe cards generate the maximum revenue from its operations. It offers multiple product lines which include analytical probes, probe stations, thermal sub-systems, and related services.

A Deep Dive into FormFactor's Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: FormFactor displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 1.31%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: FormFactor's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 45.1%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.67%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): FormFactor's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.09% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: FormFactor's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.05.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.