FormFactor Inc. FormFactor Inc. Common Stock (FORM)

FairStock Score: 31/100 — RISKY

Key Financials

Strengths

• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.03, providing financial flexibility
• Altman Z-Score of 38.1 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($14) with negative 944% margin of safety—limited downside protection

AI Analysis

FormFactor Inc. FormFactor Inc. Common Stock is a mid-cap technology company valued at $11.7 billion. The business generates $785 million in annual revenue with a 3.0% net margin. From a quality standpoint, FormFactor shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 38.1 confirms fortress-level solvency. On valuation, the stock is commanding a steep 215.0x multiple, with trades far above its Graham Number ($14) with no margin of safety. Growth dynamics show revenue growing at 13.6% and profit growth of 139.2%. Our composite FairStock Score of 31/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 215x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer