FormFactor, Inc.FORM
NASDAQ • Technology
$127.86
P/E
145.30
PEG
0.66
FCF Yield
—
Rev Growth YoY
+32.0% YoY
Gross Margin
47.9%
Health Score
7/10
D/E Ratio
0.04
Confidence
MEDIUM
Business Snapshot
FormFactor designs and manufactures probe cards and test solutions for the semiconductor industry, enabling wafer-level testing of advanced chips. The company operates in the semiconductor capital equipment market, where it holds a competitive position as a niche leader in probe card technology, particularly for memory and logic applications. With TTM revenue of $839.78M, FormFactor is a mid-cap player in the semiconductor supply chain, serving major foundries and integrated device manufacturers. A defining characteristic is its extremely high trailing P/E of 145.3x, reflecting the market's expectation of sustained growth in a cyclical and capital-intensive industry.
Financial Health
Gross margin improved from 42.8% to 47.9% year-over-year, while net margin stands at 8.1% — both reflecting better operating leverage and pricing power. The balance sheet is fortress-like: debt/equity is just 0.04x and the current ratio of 4.5x indicates ample liquidity to cover short-term obligations...
Risk Assessment
- VALUATION — P/E of 145.3x is 4.1x the sector average of 35x, leaving no room for earnings disappointment.
- REVENUE DECELERATION — QoQ revenue growth of 5.1% is a marked slowdown from the 32.0% YoY pace, hinting at a potential peak in the cycle.
- 52-WEEK POSITION — At $127.86, the stock sits 19.6% below its 52-week high of $159.09 and far above the low of $26.08, indicating significant run-up but also vulnerability to mean reversion.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- DCF DIVERGENCE — The FMP DCF fair value of $8.92 implies extreme overvaluation relative to the current price of $127.86, though the model's high confidence contrasts with the extreme premium....