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FormFactor - AI Stock Analysis
Analysis generated June 12, 2025
FormFactor Inc. (Nasdaq: FORM) is a leading provider of essential semiconductor test and measurement solutions. The company’s products are critical in validating, optimizing, and testing semiconductor designs to ensure performance and reliability. FormFactor operates in a highly competitive industry, serving major semiconductor manufacturers and fabless companies worldwide.
Fundamental Analysis
Revenue: In the last quarter, FormFactor reported revenue of $171 million. This represents a 9.57% decrease compared to the previous quarter, raising a potential red flag for investors. However, when compared to the same quarter last year, the revenue shows a modest 1.56% increase, suggesting there is still some year-over-year growth.
Net Income: The net income for the last quarter stood at $6.4 million. This is a significant 34.04% decrease from the preceding quarter and a steep 70.61% decrease compared to the same quarter last year. This substantial decline is concerning for the financial health of the company.
EBITDA: FormFactor's EBITDA came in at $3.3 million for the last quarter, marking a massive 93.75% decrease from the previous quarter and a 90.45% decline year-over-year. This sharp drop may indicate significant operational challenges.
P/E Ratio: The current P/E ratio is 49.58, which is relatively high and might suggest the stock is overvalued. This bears a bearish outlook, especially given the recent financial performance.
Notably, there have been a couple of company insiders selling their stock recently, which is typically a bearish signal, often indicating the insiders’ lack of confidence in the near-term outlook of the company.
Technical Analysis
Today’s stock price of FormFactor is $35.10, which is an increase of 9.11% from a month ago, indicating a positive short-term trend. However, the stock price is down by 39.23% from a year ago, presenting a cause for concern over the long-term performance.
The trend appears bullish with the Current SMA10 at 33.19, slightly higher than the previous SMA10 of 32.68. This indicates a potential upward trend in price movement. The RSI (Relative Strength Index) stands at 61.7, which is in the neutral range, suggesting the stock is not overbought or oversold.
Alternative Data Analysis
Job Postings and Employee Sentiment: According to data from popular job boards, FormFactor has 82 open positions, up by 49% in the last couple of months. This potentially indicates a company looking to grow and expand, which is generally a positive sign.
However, the business outlook among employees is low, with an estimate of only 41% of employees having a positive outlook. Even more concerning, this outlook has decreased by 15% in the last couple of months, indicating growing internal dissatisfaction.
Customer Acquisition and Engagement: FormFactor has an estimated 41,000 visitors to their webpage, with no significant changes in recent months. The customer engagement on social media is also relatively static, with 76 followers on Instagram and 330 on Twitter. There has been a minor increase of 3% in Twitter followers, suggesting slightly increased interest in the company.
The AltIndex AI score for FormFactor is 51, which translates to a hold signal.
Conclusion and Recommendation
FormFactor presents a mixed bag of financial performance and market indicators. The revenue and net income have shown concerning trends, with substantial quarterly decreases raising red flags. The P/E ratio suggests potential overvaluation, and insider selling doesn't inspire confidence.
From a technical perspective, despite a short-term bullish trend and positive gains over the last month, the long-term stock performance has been shaky. Alternative data analysis presents a company striving to grow but facing internal challenges and mixed customer engagement.
Given the mixed signals across various analyses, a cautious approach should be adopted. Based on the presented data and market indicators, the recommendation for FormFactor would be to hold the stock at this time.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
