Is FARO Technologies Stock a Good Investment?
FARO Technologies Investment Advice | FARO |
- Examine FARO Technologies' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research FARO Technologies' leadership team and their track record. Good management can help FARO Technologies navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Electronic Equipment, Instruments & Components space and any emerging trends that could impact FARO Technologies' business and its evolving consumer preferences.
- Compare FARO Technologies' performance and market position to its competitors. Analyze how FARO Technologies is positioned in terms of product offerings, innovation, and market share.
- Check if FARO Technologies pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about FARO Technologies' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in FARO Technologies stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if FARO Technologies is a good investment.
Sell | Buy |
Buy
Market Performance | Good | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine FARO Technologies Stock
Researching FARO Technologies' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 2.0. Some equities with similar Price to Book (P/B) outperform the market in the long run. FARO Technologies recorded a loss per share of 0.33. The entity had not issued any dividends in recent years.
To determine if FARO Technologies is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding FARO Technologies' research are outlined below:
| FARO Technologies appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 358.83 M. Net Loss for the year was (56.58 M) with profit before overhead, payroll, taxes, and interest of 175.76 M. | |
| Over 97.0% of the company shares are owned by institutional investors | |
| Latest headline from MacroaxisInsider: Disposition of 1415 shares by Matthew Horwath of FARO Technologies subject to Rule 16b-3 |
FARO Technologies Quarterly Cash And Short Term Investments |
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FARO Technologies uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in FARO Technologies. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to FARO Technologies' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact FARO Technologies' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises FARO Technologies' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2000-08-09 | 2000-06-30 | 0.04 | 0.05 | 0.01 | 25 | ||
1999-03-12 | 1998-12-31 | -0.04 | -0.05 | -0.01 | 25 | ||
1997-12-31 | 1997-09-30 | 0.1 | 0.11 | 0.01 | 10 | ||
2021-07-28 | 2021-06-30 | 0.1 | 0.12 | 0.02 | 20 | ||
2019-10-30 | 2019-09-30 | 0.01 | -0.01 | -0.02 | 200 | ||
2019-05-01 | 2019-03-31 | 0.08 | 0.06 | -0.02 | 25 | ||
2006-08-03 | 2006-06-30 | 0.04 | 0.06 | 0.02 | 50 | ||
2004-11-04 | 2004-09-30 | 0.2 | 0.22 | 0.02 | 10 |
Know FARO Technologies' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as FARO Technologies is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading FARO Technologies backward and forwards among themselves. FARO Technologies' institutional investor refers to the entity that pools money to purchase FARO Technologies' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2024-09-30 | 450.9 K | Kennedy Capital Management Inc | 2024-09-30 | 426.4 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 | Invenomic Capital Management, Lp | 2024-09-30 | 396.8 K | Assenagon Asset Management Sa | 2024-09-30 | 322 K | Jacobs Levy Equity Management, Inc. | 2024-09-30 | 293.1 K | Millennium Management Llc | 2024-06-30 | 261.6 K | Divisar Capital Management, Llc | 2024-09-30 | 1.8 M | Blackrock Inc | 2024-06-30 | 1.7 M |
FARO Technologies' market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 510.77 M.Market Cap |
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FARO Technologies' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.16) | (0.15) | |
| Return On Capital Employed | (0.13) | (0.12) | |
| Return On Assets | (0.11) | (0.11) | |
| Return On Equity | (0.21) | (0.20) |
Determining FARO Technologies' profitability involves analyzing its financial statements and using various financial metrics to determine if FARO Technologies is a good buy. For example, gross profit margin measures FARO Technologies' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of FARO Technologies' profitability and make more informed investment decisions.
FARO Technologies' Earnings Breakdown by Geography
Evaluate FARO Technologies' management efficiency
FARO Technologies has return on total asset (ROA) of 0.013 % which means that it generated a profit of $0.013 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0252) %, meaning that it created substantial loss on money invested by shareholders. FARO Technologies' management efficiency ratios could be used to measure how well FARO Technologies manages its routine affairs as well as how well it operates its assets and liabilities. As of the 25th of November 2024, Return On Tangible Assets is likely to grow to -0.15. In addition to that, Return On Capital Employed is likely to grow to -0.12. At this time, FARO Technologies' Fixed Asset Turnover is very stable compared to the past year. As of the 25th of November 2024, Asset Turnover is likely to grow to 0.91, while Total Assets are likely to drop about 293.7 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 14.20 | 9.75 | |
| Tangible Book Value Per Share | 5.88 | 7.79 | |
| Enterprise Value Over EBITDA | (12.44) | (11.82) | |
| Price Book Value Ratio | 1.59 | 1.51 | |
| Enterprise Value Multiple | (12.44) | (11.82) | |
| Price Fair Value | 1.59 | 1.51 | |
| Enterprise Value | 438.5 M | 384.1 M |
The strategic initiatives led by FARO Technologies' management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Beta 1.259 |
Basic technical analysis of FARO Stock
As of the 25th of November, FARO Technologies shows the Mean Deviation of 2.34, market risk adjusted performance of 0.6132, and Downside Deviation of 2.19. FARO Technologies technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the entity's future prices.FARO Technologies' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific FARO Technologies insiders, such as employees or executives, is commonly permitted as long as it does not rely on FARO Technologies' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases FARO Technologies insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
FARO Technologies' Outstanding Corporate Bonds
FARO Technologies issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. FARO Technologies uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most FARO bonds can be classified according to their maturity, which is the date when FARO Technologies has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View |
Understand FARO Technologies' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing FARO Technologies' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1402 | |||
| Market Risk Adjusted Performance | 0.6132 | |||
| Mean Deviation | 2.34 | |||
| Semi Deviation | 1.57 | |||
| Downside Deviation | 2.19 | |||
| Coefficient Of Variation | 581.93 | |||
| Standard Deviation | 4.97 | |||
| Variance | 24.68 | |||
| Information Ratio | 0.1455 | |||
| Jensen Alpha | 0.6748 | |||
| Total Risk Alpha | 0.0613 | |||
| Sortino Ratio | 0.3295 | |||
| Treynor Ratio | 0.6032 | |||
| Maximum Drawdown | 40.56 | |||
| Value At Risk | (3.11) | |||
| Potential Upside | 4.09 | |||
| Downside Variance | 4.81 | |||
| Semi Variance | 2.48 | |||
| Expected Short fall | (2.83) | |||
| Skewness | 5.78 | |||
| Kurtosis | 41.62 |
| Risk Adjusted Performance | 0.1402 | |||
| Market Risk Adjusted Performance | 0.6132 | |||
| Mean Deviation | 2.34 | |||
| Semi Deviation | 1.57 | |||
| Downside Deviation | 2.19 | |||
| Coefficient Of Variation | 581.93 | |||
| Standard Deviation | 4.97 | |||
| Variance | 24.68 | |||
| Information Ratio | 0.1455 | |||
| Jensen Alpha | 0.6748 | |||
| Total Risk Alpha | 0.0613 | |||
| Sortino Ratio | 0.3295 | |||
| Treynor Ratio | 0.6032 | |||
| Maximum Drawdown | 40.56 | |||
| Value At Risk | (3.11) | |||
| Potential Upside | 4.09 | |||
| Downside Variance | 4.81 | |||
| Semi Variance | 2.48 | |||
| Expected Short fall | (2.83) | |||
| Skewness | 5.78 | |||
| Kurtosis | 41.62 |
Consider FARO Technologies' intraday indicators
FARO Technologies intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of FARO Technologies stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 7734.58 | |||
| Daily Balance Of Power | (0.08) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 27.43 | |||
| Day Typical Price | 27.25 | |||
| Price Action Indicator | (0.56) | |||
| Period Momentum Indicator | (0.09) | |||
| Relative Strength Index | 86.56 |
FARO Technologies Corporate Filings
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 14th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 30th of October 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
FARO Stock media impact
Far too much social signal, news, headlines, and media speculation about FARO Technologies that are available to investors today. That information is available publicly through FARO media outlets and privately through word of mouth or via FARO internal channels. However, regardless of the origin, that massive amount of FARO data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of FARO Technologies news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of FARO Technologies relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to FARO Technologies' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive FARO Technologies alpha.
FARO Technologies Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards FARO Technologies can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
FARO Technologies Corporate Management
| Jason Pollock | Chief Officer | Profile | |
| Arianne Boyer | VP Officer | Profile | |
| Allen Muhich | Executive Officer | Profile | |
| Jeffrey Sexton | Senior Sales | Profile | |
| Michael Carris | VP Officer | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in FARO Technologies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in FARO Stock, please use our How to Invest in FARO Technologies guide.You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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.
In summary, please note that there is a difference between FARO Technologies' value and its price, as these two are different measures arrived at by various 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.