Forrester Research (FORR) AI Stock Analysis

• Market Cap: $199.04M
• Dividend Yield: N/A
• Average Volume (3M): 87.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -9.11%
• EPS Growth: -6082.17%
• Country: US
• Employees: 1,510
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.51
• Shares Outstanding: 19,083,000
• 10 Day Avg. Volume: 93,978
• 30 Day Avg. Volume: 87,684
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 0.48
• Enterprise Value/Ebitda: -2.55
• 1Y Price Target: $11.75
• Price Target Upside: 12.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 48 Neutral
• Price Target: $9.50 ▼(-9.26% Downside)

Forrester Research's overall stock score reflects significant financial performance challenges, with negative profitability and declining revenue. Technical indicators suggest a bearish trend, and valuation metrics are unattractive. However, the earnings call provided some optimism with improvements in client retention and sales pipeline growth.

Positive Factors

Client Retention Improvement

Improved client retention indicates stronger customer relationships and potential for stable recurring revenue, supporting long-term growth.

Sales Pipeline Growth

A growing sales pipeline suggests future revenue potential and business expansion opportunities, enhancing long-term prospects.

Government Contracts

New government contracts diversify revenue streams and provide stable, long-term income, strengthening market position.

Negative Factors

Revenue Decline

Declining revenue in key segments indicates challenges in maintaining market share and could impact long-term financial health.

Consulting and Events Challenges

Significant declines in consulting and events suggest structural issues in these segments, potentially affecting future growth.

Operating Income and EPS Decline

Decreasing operating income and EPS highlight profitability challenges, which may hinder reinvestment and long-term growth.

Forrester Research Business Overview & Revenue Model

Company Description

Forrester Research, Inc. operates as an independent research and advisory services company. The company operates in three segments: Research, Consulting, and Events. The Research segment primary subscription research portfolio services include Forrester Research, SiriusDecisions Research, and Forrester Decisions, which are designed to provide business and technology leaders with a proven path to growth through customer obsession. This segment delivers content, such as future trends, predictions, and market forecasts; deep consumer and business buyer data and insights; curated best practice models and tools to run business functions; operational and performance benchmarking data; and technology and service market landscapes and vendor evaluations through online access. The Consulting segment provides consulting projecs, including conducting maturity assessments, prioritizing best practices, developing strategies, building business cases, selecting technology vendors, structuring organizations, developing content marketing strategies and collateral, and sales tools; and advisory services. The Events segment hosts in-person and virtual events related to business-to-business marketing, sales and product leadership, customer experience, security and risk, new technology and innovation, and data strategies and insights. The company sells its products and services through direct sales force in various locations in the United States, Europe, the United Kingdom, Canada, the Asia Pacific region, and internationally. Forrester Research, Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Forrester Research generates revenue primarily through its subscription-based model, which provides clients access to a wealth of research reports, data, and advisory services. Key revenue streams include annual subscriptions for its research services, which cater to various sectors such as technology, marketing, and customer experience. Additionally, the company earns income from consulting services that help organizations implement research findings and strategies. Forrester also generates revenue through events, such as conferences and webinars, which provide networking opportunities and insights from industry leaders. Strategic partnerships with technology firms and other organizations can further enhance its offerings and contribute to revenue growth, as they often lead to co-hosted events and joint research initiatives.

Forrester Research Financial Statement Overview

Summary

Forrester Research faces profitability challenges with a negative net profit margin and declining revenue. While there is operational cash flow resilience, the negative net income and declining free cash flow highlight the need for strategic improvements. The balance sheet remains stable with manageable leverage, but profitability and revenue growth need attention.

Income Statement

Forrester Research's income statement reveals significant challenges. The gross profit margin for TTM (Trailing-Twelve-Months) is 64.7%, indicating a decent level of profitability at the gross level. However, the net profit margin is negative at -20.4%, driven by a net loss of $86.35 million, highlighting issues in cost control or revenue generation. Revenue has decreased over time, with a TTM revenue of $422.27 million, down from $537.79 million in 2022, marking a negative growth trajectory.

Balance Sheet

The balance sheet shows a stable equity position with stockholders' equity at $147.43 million. However, the debt-to-equity ratio of 0.39 indicates moderate leverage, which is manageable but should be monitored. The equity ratio stands at 33.5%, reflecting a moderate reliance on equity financing. The return on equity is negative due to net losses, pointing to current inefficiencies in generating profits from equity.

Cash Flow

Cash flow analysis reveals mixed results. Operating cash flow for TTM is positive at $22.25 million, indicating some level of operational efficiency. However, free cash flow has decreased from $33.76 million in 2022 to $19.63 million in TTM. The free cash flow to net income ratio is not meaningful due to net losses, but the operating cash flow to net income ratio is positive, suggesting better cash management relative to reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	422.27M	432.47M	480.78M	537.79M	494.31M	448.98M
Gross Profit	273.27M	422.82M	276.30M	314.01M	292.50M	268.08M
EBITDA	-51.61M	35.83M	41.41M	70.10M	116.12M	98.07M
Net Income	-86.35M	-5.75M	3.05M	21.81M	24.84M	9.99M
Balance Sheet
Total Assets	439.81M	503.86M	564.17M	608.44M	680.13M	644.22M
Cash, Cash Equivalents and Short-Term Investments	134.25M	104.67M	124.49M	123.32M	134.28M	90.26M
Total Debt	57.00M	72.57M	86.85M	114.38M	153.03M	190.09M
Total Liabilities	292.37M	274.32M	323.91M	386.78M	476.22M	458.45M
Stockholders Equity	147.43M	229.54M	240.26M	221.66M	203.91M	185.77M
Cash Flow
Free Cash Flow	19.63M	-7.26M	16.18M	33.76M	96.32M	38.85M
Operating Cash Flow	22.25M	-3.86M	21.67M	39.42M	107.07M	47.75M
Investing Cash Flow	3.78M	5.02M	-36.76M	-6.81M	-29.30M	-4.57M
Financing Cash Flow	-11.59M	-16.10M	-18.30M	-38.87M	-49.14M	-23.69M

Forrester Research Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORR, the sentiment is Positive. The current price of 10.47 is above the 20-day moving average (MA) of 10.22, above the 50-day MA of 10.12, and below the 200-day MA of 11.31, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 54.07 is Neutral, neither overbought nor oversold. The STOCH value of 18.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FORR.

Forrester Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	78 Outperform	1.35B	25.00	28.70%	0.96%	9.28%	44.19%
FCN	75 Outperform	5.23B	22.70	13.14%	―	-0.89%	-23.72%
HURN	72 Outperform	2.53B	25.49	22.13%	―	8.99%	35.56%
FC	70 Outperform	255.24M	25.53	16.24%	―	-0.40%	-40.98%
ICFI	70 Outperform	1.71B	16.03	10.77%	0.60%	-0.47%	10.03%
FORR	48 Neutral	$199.04M	―	-44.74%	―	-9.11%	-6082.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%