📊 FORM Key Takeaways
Is FORM a Good Investment? Thesis Analysis
FormFactor demonstrates solid financial health with exceptional liquidity (4.5x current ratio) and minimal leverage, but faces concerning profitability headwinds with net income declining 21.9% YoY despite modest 2.8% revenue growth. The company's weak free cash flow margin of 1.5% and high capital intensity (CapEx consuming 89% of operating cash flow) raise questions about cash generation quality and reinvestment returns.
Why Buy FORM? Key Strengths
- Excellent liquidity position with 4.5x current ratio and minimal debt burden (0.01x debt-to-equity)
- Strong interest coverage of 109.5x indicates virtually no financial distress risk
- Reasonable gross margin of 39.3% provides pricing power in semiconductor testing equipment sector
FORM Investment Risks to Consider
- Net income declined 21.9% YoY while revenue grew only 2.8%, indicating margin compression and operational challenges
- Free cash flow of only 11.7M (1.5% margin) is extremely weak relative to operating cash flow of 115.4M, suggesting capital-intensive business model with poor cash conversion
- Low profitability metrics (7.3% operating margin, 6.9% net margin, 5.3% ROE) suggest limited financial flexibility and reinvestment capacity
Key Metrics to Watch
- Operating margin trend - critical to monitor if 7.3% can stabilize or if further compression continues
- Free cash flow generation - need to assess whether 1.5% FCF margin is sustainable or if capital discipline improves
- Revenue growth acceleration - 2.8% YoY growth insufficient to justify capital intensity without margin improvement
FORM Financial Metrics
💡 AI Analyst Insight
The relatively thin 1.5% FCF margin may limit capital allocation flexibility. Strong liquidity with a 4.50x current ratio provides a solid financial cushion.
FORM Profitability Ratios
FORM vs Technology Sector
How FORMFACTOR INC compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FORM Overvalued or Undervalued?
Based on fundamental analysis, FORMFACTOR INC has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FORM Balance Sheet & Liquidity
FORM 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: FORMFACTOR INC's revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $1.05 reflects profitable operations.
FORM Growth Metrics (YoY)
FORM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $202.7M | $15.7M | $0.20 |
| Q2 2025 | $195.8M | $9.1M | $0.12 |
| Q1 2025 | $168.7M | $6.4M | $0.08 |
| Q3 2024 | $171.6M | $4.4M | $0.06 |
| Q2 2024 | $155.9M | $828.0K | $0.01 |
| Q1 2024 | $167.4M | $1.3M | $0.02 |
| Q3 2023 | $171.6M | $4.4M | $0.06 |
| Q2 2023 | $155.9M | $828.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FORM Capital Allocation
FORM SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for FORMFACTOR INC (CIK: 0001039399)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FORM
What is the AI rating for FORM?
FORMFACTOR INC (FORM) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FORM's key strengths?
Claude: Excellent liquidity position with 4.5x current ratio and minimal debt burden (0.01x debt-to-equity). Strong interest coverage of 109.5x indicates virtually no financial distress risk.
What are the risks of investing in FORM?
Claude: Net income declined 21.9% YoY while revenue grew only 2.8%, indicating margin compression and operational challenges. Free cash flow of only 11.7M (1.5% margin) is extremely weak relative to operating cash flow of 115.4M, suggesting capital-intensive business model with poor cash conversion.
What is FORM's revenue and growth?
FORMFACTOR INC reported revenue of $785.0M.
Does FORM pay dividends?
FORMFACTOR INC does not currently pay dividends.
Where can I find FORM SEC filings?
Official SEC filings for FORMFACTOR INC (CIK: 0001039399) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FORM's EPS?
FORMFACTOR INC has a diluted EPS of $0.69.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FORM a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, FORMFACTOR INC has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FORM stock overvalued or undervalued?
Valuation metrics for FORM: ROE of 5.3% (sector avg: 22%), net margin of 6.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy FORM stock in 2026?
Our dual AI analysis gives FORMFACTOR INC a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FORM's free cash flow?
FORMFACTOR INC's operating cash flow is $115.4M, with capital expenditures of $103.7M. FCF margin is 1.5%.
How does FORM compare to other Technology stocks?
Vs Technology sector averages: Net margin 6.9% (avg: 18%), ROE 5.3% (avg: 22%), current ratio 4.50 (avg: 2.5).