Formfactor (FORM) AI Stock Analysis

• Market Cap: $3.06B
• Dividend Yield: N/A
• Average Volume (3M): 831.10K
• Price to Earnings (P/E): 70.5
• Beta (1Y): 2.10
• Revenue Growth: 8.30%
• EPS Growth: -63.69%
• Country: US
• Employees: 2,238
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.27
• Shares Outstanding: 77,114,210
• 10 Day Avg. Volume: 1,050,343
• 30 Day Avg. Volume: 831,096
• PEG Ratio: -3.38
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 4.65
• P/FCF Ratio: 44.90
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 8.43
• Enterprise Value/Ebitda: 22.18
• 1Y Price Target: $30.83
• Price Target Upside: -22.32% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $39.00 ▼(-1.74% Downside)

FormFactor's overall score reflects a stable financial position with low leverage and strategic growth initiatives. However, the high valuation, overbought technical indicators, and mixed earnings call sentiment due to margin pressures and tariff impacts weigh on the score.

Positive Factors

Strategic Investments

Investing in a new manufacturing facility enhances FormFactor's long-term competitiveness and capacity, supporting future growth and profitability.

Revenue Growth

Consistent revenue growth, particularly in the probe card business, indicates strong demand and market position, supporting long-term financial health.

Market Leadership

Being recognized as a leading supplier underscores FormFactor's competitive advantage and strengthens its market position in the semiconductor industry.

Negative Factors

Gross Margin Decline

Declining gross margins due to unfavorable product mix and ramp-up costs could pressure profitability, affecting long-term financial performance.

Tariff Impact

Ongoing tariff impacts could further erode margins, increasing costs and potentially affecting pricing strategies and competitive positioning.

Higher Operating Expenses

Rising operating expenses, driven by labor and facility costs, may limit profitability and cash flow, challenging the company's ability to invest in growth.

Formfactor Business Overview & Revenue Model

Company Description

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions. It operates in two segments, Probe Cards and Systems. The company offers probe cards to test various semiconductor device types, including systems on a chip products, mobile application processors, microprocessors, microcontrollers, and graphic processors, as well as radio frequency, analog, mixed signal, image sensor, electro-optical, dynamic random access memory, NAND flash memory, and NOR flash memory devices; and analytical probes, which are used for a range of applications, including device characterization, electrical simulation model development, failure analysis, and prototype design debugging for universities, research institutions, semiconductor integrated device manufacturers, semiconductor foundries, and fabless semiconductor companies. It also provides probing systems for semiconductor design engineers to capture and analyze accurate data; surface metrology systems for the development, production, and quality control of semiconductor products; thermal subsystems, such as thermal chucks and other test systems used in probe stations and other applications; and precision cryogenic instruments, semiconductor tests, and measurement systems. In addition, the company offers on-site probe card maintenance and service training, seminars, and telephone support services. The company markets and sells its products through direct sales force, manufacturers' representatives, and distributors in the United States, Taiwan, South Korea, China, Japan, Europe, rest of Asia-Pacific, and internationally. FormFactor, Inc. was incorporated in 1993 and is headquartered in Livermore, California.

How the Company Makes Money

Formfactor generates revenue through the sale of its semiconductor test solutions, including probe cards and related services, which are essential for the testing of integrated circuits during the manufacturing process. The company has a diverse customer base, including major semiconductor manufacturers and foundries, which contributes to its revenue stability. Key revenue streams include direct sales of products, service contracts for maintenance and support, and customized solutions tailored to specific customer needs. Formfactor also benefits from strategic partnerships with leading semiconductor companies, which can lead to collaborative projects and increased sales opportunities.

Formfactor Financial Statement Overview

Summary

FormFactor shows financial stability with a strong equity position and low leverage. However, profitability margins are under pressure, and free cash flow has significantly decreased, indicating challenges in sustaining growth.

Income Statement

Formfactor's TTM revenue shows a slight growth trend from the previous period, with a revenue growth rate of approximately 0.13%. The company maintains a solid gross profit margin of 38.67% in the TTM, though this is slightly lower than the previous year. The net profit margin has decreased to 5.75% from 9.12% last year, indicating some pressure on profitability. The EBITDA margin is fairly strong at 12.18%, although it has decreased from the prior year's 14.76%.

Balance Sheet

The company has a strong equity position with an equity ratio of 83.79% in the TTM, reflecting financial stability. The debt-to-equity ratio is low at 0.02, indicating low leverage. ROE is at 4.44%, which shows a decline from previous years, suggesting a decrease in profitability relative to shareholder equity.

Cash Flow

The TTM free cash flow has significantly decreased compared to the previous year, resulting in negative free cash flow growth of approximately -95.40%. The operating cash flow to net income ratio is 2.39, indicating strong cash generation from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	764.55M	763.60M	663.10M	747.94M	769.67M	693.62M
Gross Profit	295.75M	307.92M	258.58M	303.43M	322.77M	287.92M
EBITDA	112.36M	112.73M	127.14M	104.64M	150.79M	140.68M
Net Income	43.93M	69.61M	82.39M	50.74M	83.92M	78.52M
Balance Sheet
Total Assets	1.18B	1.15B	1.11B	1.01B	1.02B	963.22M
Cash, Cash Equivalents and Short-Term Investments	249.33M	360.02M	328.32M	238.13M	276.06M	255.03M
Total Debt	24.27M	39.23M	48.15M	50.37M	63.27M	69.19M
Total Liabilities	191.59M	198.45M	197.99M	199.94M	204.74M	219.13M
Stockholders Equity	990.02M	947.77M	908.80M	808.28M	815.78M	744.08M
Cash Flow
Free Cash Flow	3.63M	79.10M	8.57M	66.53M	72.87M	113.39M
Operating Cash Flow	105.08M	117.53M	64.60M	131.79M	139.36M	169.26M
Investing Cash Flow	-186.73M	-33.48M	29.05M	-75.70M	-124.74M	-98.92M
Financing Cash Flow	-52.36M	-64.61M	-22.71M	-95.93M	-47.20M	-30.93M

Formfactor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORM, the sentiment is Positive. The current price of 39.69 is above the 20-day moving average (MA) of 34.37, above the 50-day MA of 31.54, and above the 200-day MA of 33.80, indicating a bullish trend. The MACD of 2.21 indicates Negative momentum. The RSI at 74.52 is Negative, neither overbought nor oversold. The STOCH value of 82.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FORM.

Formfactor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACLS	78 Outperform	$2.75B	18.14	16.19%	―	-19.38%	-33.03%
DIOD	71 Outperform	$2.45B	38.38	3.49%	―	2.86%	-34.32%
FORM	67 Neutral	$3.06B	70.53	4.53%	―	8.30%	-63.69%
KLIC	64 Neutral	$2.10B	510.63	0.66%	2.03%	-9.54%	―
SYNA	64 Neutral	$2.67B	14.47	-3.34%	―	11.98%	-138.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
POWI	55 Neutral	$2.17B	65.55	4.68%	2.18%	7.16%	-21.24%

Formfactor Corporate Events

FormFactor Appoints New CFO Amid Leadership Changes

On August 8, 2025, FormFactor, Inc. announced the resignation of Shai Shahar as Senior Vice President and Chief Financial Officer, effective immediately, with his continued role as Senior Vice President, Executive Advisor until the end of the year. Concurrently, the company appointed Aric McKinnis as the new Senior Vice President and Chief Financial Officer. McKinnis, who has been with FormFactor since 2019, brings extensive experience from his previous roles at MKS Instruments and Deloitte. His appointment is accompanied by a comprehensive compensation package, reflecting the company’s confidence in his leadership capabilities.

The most recent analyst rating on (FORM) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Formfactor stock, see the FORM Stock Forecast page.