Faro Technologies Stock Beta
| FARO Stock | USD 27.00 0.70 2.66% |
FARO Technologies fundamentals help investors to digest information that contributes to FARO Technologies' financial success or failures. It also enables traders to predict the movement of FARO Stock. The fundamental analysis module provides a way to measure FARO Technologies' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to FARO Technologies stock.
FARO | Beta |
FARO Technologies Company Beta Analysis
FARO Technologies' Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current FARO Technologies Beta | 1.26 |
Most of FARO Technologies' fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, FARO Technologies is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
FARO Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for FARO Technologies is extremely important. It helps to project a fair market value of FARO Stock properly, considering its historical fundamentals such as Beta. Since FARO Technologies' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of FARO Technologies' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of FARO Technologies' interrelated accounts and indicators.
Click cells to compare fundamentals
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, FARO Technologies has a Beta of 1.259. This is 18.77% higher than that of the Electronic Equipment, Instruments & Components sector and 15.5% higher than that of the Information Technology industry. The beta for all United States stocks is notably lower than that of the firm.
FARO Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses FARO Technologies' direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of FARO Technologies could also be used in its relative valuation, which is a method of valuing FARO Technologies by comparing valuation metrics of similar companies.FARO Technologies is currently under evaluation in beta category among its peers.
FARO Technologies Current Valuation Drivers
We derive many important indicators used in calculating different scores of FARO Technologies from analyzing FARO Technologies' financial statements. These drivers represent accounts that assess FARO Technologies' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of FARO Technologies' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 875.3M | 1.3B | 1.3B | 538.7M | 426.2M | 429.4M | |
| Enterprise Value | 762.0M | 1.1B | 1.2B | 521.3M | 438.5M | 384.1M |
FARO Technologies ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, FARO Technologies' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to FARO Technologies' managers, analysts, and investors.Environmental | Governance | Social |
FARO Technologies Institutional Holders
Institutional Holdings refers to the ownership stake in FARO Technologies that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of FARO Technologies' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing FARO Technologies' value.| Shares | Kennedy Capital Management Inc | 2024-06-30 | 484 K | Geode Capital Management, Llc | 2024-06-30 | 431.9 K | Ameriprise Financial Inc | 2024-06-30 | 421.5 K | Prudential Financial Inc | 2024-09-30 | 416.4 K | State Street Corp | 2024-06-30 | 400.7 K | Jacobs Levy Equity Management, Inc. | 2024-06-30 | 371.8 K | Invenomic Capital Management, Lp | 2024-06-30 | 322.2 K | Assenagon Asset Management Sa | 2024-09-30 | 322 K | Millennium Management Llc | 2024-06-30 | 261.6 K | Divisar Capital Management, Llc | 2024-06-30 | 1.8 M | Blackrock Inc | 2024-06-30 | 1.7 M |
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, FARO Technologies will likely underperform.
FARO Fundamentals
| Return On Equity | -0.0252 | ||||
| Return On Asset | 0.013 | ||||
| Profit Margin | (0.02) % | ||||
| Operating Margin | 0.03 % | ||||
| Current Valuation | 483.63 M | ||||
| Shares Outstanding | 18.92 M | ||||
| Shares Owned By Insiders | 3.50 % | ||||
| Shares Owned By Institutions | 96.50 % | ||||
| Number Of Shares Shorted | 1.08 M | ||||
| Price To Earning | 46.93 X | ||||
| Price To Book | 1.89 X | ||||
| Price To Sales | 1.43 X | ||||
| Revenue | 358.83 M | ||||
| Gross Profit | 175.76 M | ||||
| EBITDA | (35.23 M) | ||||
| Net Income | (56.58 M) | ||||
| Cash And Equivalents | 101.97 M | ||||
| Cash Per Share | 5.58 X | ||||
| Total Debt | 89.03 M | ||||
| Debt To Equity | 0.07 % | ||||
| Current Ratio | 2.57 X | ||||
| Book Value Per Share | 13.51 X | ||||
| Cash Flow From Operations | 1.07 M | ||||
| Short Ratio | 11.88 X | ||||
| Earnings Per Share | (0.33) X | ||||
| Price To Earnings To Growth | (19.38) X | ||||
| Target Price | 27.0 | ||||
| Number Of Employees | 1.24 K | ||||
| Beta | 1.26 | ||||
| Market Capitalization | 497.52 M | ||||
| Total Asset | 504.69 M | ||||
| Retained Earnings | (9.79 M) | ||||
| Working Capital | 148.34 M | ||||
| Current Asset | 292.16 M | ||||
| Current Liabilities | 63.03 M | ||||
| Net Asset | 504.69 M |
About FARO Technologies Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze FARO Technologies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of FARO Technologies using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of FARO Technologies based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with FARO Technologies
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if FARO Technologies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FARO Technologies will appreciate offsetting losses from the drop in the long position's value.Moving together with FARO Stock
Moving against FARO Stock
| 0.71 | ST | Sensata Technologies | PairCorr |
| 0.65 | VPG | Vishay Precision | PairCorr |
| 0.54 | SVREW | SaverOne 2014 | PairCorr |
| 0.52 | WATT | Energous | PairCorr |
| 0.34 | KNW | Know Labs Fiscal Year End 17th of December 2024 | PairCorr |
The ability to find closely correlated positions to FARO Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace FARO Technologies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back FARO Technologies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling FARO Technologies to buy it.
The correlation of FARO Technologies is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as FARO Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if FARO Technologies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for FARO Technologies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out FARO Technologies Piotroski F Score and FARO Technologies Altman Z Score analysis. To learn how to invest in FARO Stock, please use our How to Invest in FARO Technologies guide.You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of FARO Technologies. If investors know FARO will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about FARO Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.33) | Revenue Per Share 18.152 | Quarterly Revenue Growth (0.05) | Return On Assets 0.013 | Return On Equity (0.03) |
The market value of FARO Technologies is measured differently than its book value, which is the value of FARO that is recorded on the company's balance sheet. Investors also form their own opinion of FARO Technologies' value that differs from its market value or its book value, called intrinsic value, which is FARO Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because FARO Technologies' market value can be influenced by many factors that don't directly affect FARO Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between FARO Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if FARO Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FARO Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.