Peeling Back The Layers: Exploring FormFactor Through Analyst Insights

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

The table below offers a condensed view of their recent ratings, showcasing 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 $66.0, along with a high estimate of $74.00 and a low estimate of $55.00. Observing a 10.46% increase, the current average has risen from the previous average price target of $59.75.

Analyzing Analyst Ratings: A Detailed Breakdown

The perception of FormFactor by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to FormFactor. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of FormFactor compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for FormFactor's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into FormFactor's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent 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.

Key Indicators: FormFactor's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: FormFactor's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 0.76%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: FormFactor's net margin excels beyond industry benchmarks, reaching 12.91%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.38%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): FormFactor's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.96%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.05, FormFactor adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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