📊 FORM Key Takeaways
Is Formfactor Inc. (FORM) a Good Investment?
FormFactor maintains fortress-like financial health with exceptional balance sheet strength (0.01x debt-to-equity), robust liquidity, and positive free cash flow generation. However, net income declined 21.9% year-over-year despite 2.8% revenue growth, signaling operational deterioration and very weak returns on capital (ROE 1.9%, ROA 1.6%) that require reversal before investment conviction.
FormFactor’s fundamentals show a very strong balance sheet, excellent liquidity, and minimal leverage, which gives the company resilience in a cyclical semiconductor environment. However, growth quality is mixed: revenue increased only modestly while net income and diluted EPS declined materially, and free cash flow remained thin due to heavy capital spending. The company appears financially solid, but current profitability and cash conversion do not yet support a more aggressive rating.
Formfactor Inc. Key Strengths (FORM)
- Exceptional balance sheet with minimal leverage (0.01x D/E ratio) and $123.5M cash reserves providing substantial financial flexibility
- Outstanding liquidity position (4.55x current ratio, 3.69x quick ratio) with strong interest coverage (32.0x) ensures no solvency concerns
- Consistent free cash flow generation of $29.8M (13.2% FCF margin) demonstrates cash-generative business model despite profitability headwinds
- Very strong balance sheet with low debt and high equity base
- Excellent liquidity, with current ratio of 4.50x and quick ratio of 3.60x
- Positive operating cash flow and solid gross margin for a semiconductor equipment-related business
FORM Stock Risks: Formfactor Inc. Investment Risks
- Significant profitability decline of 21.9% net income YoY despite modest 2.8% revenue growth indicates deteriorating operational efficiency or margin compression
- Critically low returns on equity (1.9%) and assets (1.6%) reveal inefficient capital deployment and poor asset utilization across the business
- Modest revenue growth in capital-intensive semiconductor test equipment sector facing cyclical headwinds and competitive pressures
- Net income and diluted EPS declined more than 20% year over year despite revenue growth
- Operating and net margins are relatively modest, limiting earnings durability if demand weakens
- Free cash flow is weak because capital expenditures are consuming most operating cash flow
Key Metrics to Watch
- Operating margin trends and ability to improve operational efficiency
- Revenue growth acceleration and market share dynamics in wafer probing/inspection markets
- Return on equity improvement and whether company can deploy capital more effectively
- Operating margin and net income trend
- Free cash flow generation relative to capital expenditures
Formfactor Inc. (FORM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.55x current ratio provides a solid financial cushion.
FORM Profit Margin, ROE & Profitability Analysis
FORM vs Technology Sector: How Formfactor Inc. Compares
How Formfactor Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Formfactor Inc. Stock Overvalued? FORM Valuation Analysis 2026
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.
Formfactor Inc. Balance Sheet: FORM Debt, Cash & Liquidity
FORM Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
FORM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $171.4M | $6.4M | $0.08 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Formfactor Inc. Dividends, Buybacks & Capital Allocation
FORM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Formfactor Inc. (CIK: 0001039399)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780611730.xml | View → |
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780611625.xml | View → |
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779491060.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779400277.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779400111.xml | View → |
❓ Frequently Asked Questions about FORM
What is the AI rating for FORM?
Formfactor Inc. (FORM) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FORM's key strengths?
Claude: Exceptional balance sheet with minimal leverage (0.01x D/E ratio) and $123.5M cash reserves providing substantial financial flexibility. Outstanding liquidity position (4.55x current ratio, 3.69x quick ratio) with strong interest coverage (32.0x) ensures no solvency concerns. ChatGPT: Very strong balance sheet with low debt and high equity base. Excellent liquidity, with current ratio of 4.50x and quick ratio of 3.60x.
What are the risks of investing in FORM?
Claude: Significant profitability decline of 21.9% net income YoY despite modest 2.8% revenue growth indicates deteriorating operational efficiency or margin compression. Critically low returns on equity (1.9%) and assets (1.6%) reveal inefficient capital deployment and poor asset utilization across the business. ChatGPT: Net income and diluted EPS declined more than 20% year over year despite revenue growth. Operating and net margins are relatively modest, limiting earnings durability if demand weakens.
What is FORM's revenue and growth?
Formfactor Inc. reported revenue of $226.1M.
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 $0.26.
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 grade reflects both perspectives for balanced insights.
What is FORM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Formfactor Inc. has a B grade with 73% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FORM stock overvalued or undervalued?
Valuation metrics for FORM: ROE of 1.9% (sector avg: 22%), net margin of 9.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is FORM's AI grade for 2026?
Our dual AI analysis gives Formfactor Inc. a combined B grade 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 $45.0M, with capital expenditures of $15.2M. FCF margin is 13.2%.
How does FORM compare to other Technology stocks?
Vs Technology sector averages: Net margin 9.0% (avg: 18%), ROE 1.9% (avg: 22%), current ratio 4.55 (avg: 2.5).