# FormFactor (FORM.US)

Canonical: https://gigainvestors.com/s/FORM

Analysis as of: 2026-10-16T07:28:36.679Z. Financial observations: FY2003–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $113.34 per share; close as of 2026-10-15.

Estimated value: low $15.74 per share, central $17.33 per share, high $19.44 per share. Buy at or below the central value $17.33 per share. Valuation as of 2026-10-16T07:28:36.679Z; scenarios are not confidence intervals.

Expected annual return: 3.8% at the stated quote. About 3.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.95×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.12×

- FY2017: 0.08×

- FY2018: 0.07×

- FY2019: 0.08×

- FY2020: 0.12×

- FY2021: 0.13×

- FY2022: 0.07×

- FY2023: 0.12×

- FY2024: 0.08×

- FY2025: 0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.7%

- ROIC, second-lowest year: 8.8%

- Typical minus recent gross margin: 0.5 pp

- Typical gross margin (annual median): 39.6%

- Recent gross margin (lower of latest and 3-year median): 39.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.5%

- ROIC including acquisitions, ten-year median: 11.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -15.4%

- FY2017: 19.2%

- FY2018: 11.8%

- FY2019: 12.1%

- FY2020: 22.4%

- FY2021: 21.4%

- FY2022: 11.8%

- FY2023: 17.9%

- FY2024: 13.3%

- FY2025: 8.8%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.69×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $235M

- Net income, five-year total: $341M

- Return on incremental invested capital: 32.3%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -1.8 pp

- Working capital / revenue, final three-year average: 22.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.88×

- FY2022: 0.46×

- FY2023: 0.77×

- FY2024: 1.00×

- FY2025: 0.08×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 11.8% vs 13.3%

- Per-share earnings: -0.03 to 0.89 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.1%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: $3.5B

- Cumulative retained earnings: $604M

- Diluted shares, 10-year annual growth: 3.1%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $0.91

- Per-share value, starting three-year median: -$0.03

- Per-share value, ending three-year median: $0.89

- Buybacks concentrated in cheaper years (correlation): 0.33

- Average buyback yield: 1.3%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $296M

- Cumulative net income, 10 years: $597M

- ROIC, first three-year median: 11.8%

- ROIC, last three-year median: 13.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.10

- FY2017: $0.55

- FY2018: $1.38

- FY2019: $0.51

- FY2020: $0.99

- FY2021: $1.06

- FY2022: $0.65

- FY2023: $1.05

- FY2024: $0.89

- FY2025: $0.69

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -5.0%

- Receivables to sales index (DSRI): 1.17×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 33.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.12×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.9%

- FY2017: -7.0%

- FY2018: 4.9%

- FY2019: -9.7%

- FY2020: -9.4%

- FY2021: -5.4%

- FY2022: -8.0%

- FY2023: 1.6%

- FY2024: -4.2%

- FY2025: -5.0%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 29% since Jun 2026 · "FormFactor Q2 Earnings Call Highlights AI Demand Drives Growth" (finance.yahoo.com, Jul 2026) · sales +2.8%

Story as of 2026-10-16T09:58:46.791Z; price observation 2026-10-15.

Price needs cash profits to grow 28.4% a year for ten years

- 2025-05-14: FORM Q1 Earnings Call: Tariffs and AI-Driven Demand Shape FormFactor’s Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/form-q1-earnings-call-tariffs-125248372.html))

- 2025-08-21: FormFactor slides as Citi cuts on 'non-AI softness' ([seekingalpha.com](https://seekingalpha.com/news/4487889-formfactor-slides-as-citi-cuts-on-non-ai-softness?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-10-31: FormFactor (FORM) Hits New Record High as Firm Beats Revenue Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/formfactor-form-hits-record-high-140113306.html))

- 2026-08-01: FormFactor (FORM) Stock Sees Modest Fair Value Cut As Analysts Reset AI Expectations ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/formfactor-form-stock-sees-modest-180818392.html))

### Sales · FY2024–2025

sales +2.8%; source https://www.sec.gov/Archives/edgar/data/1039399/000103939926000009/form-20251227.htm; observed 2026-02-20.

- FY2016: $384M 

- FY2017: $548M 

- FY2018: $530M 

- FY2019: $589M 

- FY2020: $694M 

- FY2021: $770M 

- FY2022: $748M 

- FY2023: $663M 

- FY2024: $764M 

- FY2025: $785M 

### Gross margin · FY2025

gross margin 39.1%; source https://www.sec.gov/Archives/edgar/data/1039399/000103939926000009/form-20251227.htm; observed 2026-02-20.

- FY2016: 26.7% 

- FY2017: 39.3% 

- FY2018: 39.7% 

- FY2019: 40.3% 

- FY2020: 41.5% 

- FY2021: 41.9% 

- FY2022: 39.6% 

- FY2023: 39.0% 

- FY2024: 40.3% 

- FY2025: 39.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductor equipment & materials; annual sales are USD 785 million.

- Source: https://www.sec.gov/Archives/edgar/data/1039399/000103939926000009/form-20251227.htm (filed 2026-02-20); FY2025: revenue 784993000; grossProfit 307210000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FORM.US: FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, thermal systems, cryogenic systems, and related services in the United States, South Korea, Taiwan, China, Japan, Singapore, Europe, Malaysia, and internationally. It operates in two segments: Probe Cards and Systems segments. The company provides probe cards to test various semiconductor device types, including systems- on-chip products, such as graphics, central, digital processing units, and other custom application-specific processing units; mobile application processors, microprocessors, and microcontrollers; network devices, which include switches and network processing units; dynamic random-access memory; radio-frequency amplifiers and filters; antenna-in-package devices; analog and mixed-signal integrated circuits; image sensors; co-packaged optical integrated circuits; NAND flash memory; NOR flash memory; and quantum computer processor devices. It also offers analytical probes, which are used for device characterization, electrical simulation model development, failure analysis, and prototype design debugging; probe stations, a critical tool for the development of new generations of semiconductor and electro-optical processes and designs; and thermal subsystems, which include thermal chucks and other test systems used in probe stations and other applications for precise temperature management. In addition, the company provides cryogenic systems, which includes the manufacture of precision cryogenic instruments and semiconductor test and measurement systems; and services and support, including installation services. Further, it offers on-site probe card maintenance and service training, seminars, and telephone support services. It sells its products through direct sales force, manufacturers' representatives, and distributors. It has a strategic collaboration with Teradyne. The company was incorporated in 1993 and is headquartered in Livermore, California.

### Why customers stay

Margins ranged from 39% to 40.3% during 2023–25; it earns 12.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 39%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 40.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1039399/000103939926000009/form-20251227.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 39.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,-0.15383517600195107],[2017,0.19162887169581558],[2018,0.11771168152093833],[2019,0.12146043924428965],[2020,0.22358421559563085],[2021,0.21380161462457373],[2022,0.1176901016497894],[2023,0.17864484445151474],[2024,0.13274238098192712],[2025,0.0881367794801557]]; median 0.12710141011310838. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 32.3% on new investment; paid dividends in 3 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 11521000; owner earnings 28720000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 17756000; owner earnings 67723000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 19869000; owner earnings 127854000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 0; upkeep 20847000; owner earnings 63356000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 7180000; upkeep 48685000; owner earnings 78523000. Growth capex / owner earnings = 0.09143817734931167.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 11725890.638929144; upkeep 54770109.36107086; owner earnings 73672890.63892914. Growth capex / owner earnings = 0.15916153875918534.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 65254000; owner earnings 23521000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 56027000; owner earnings 63813000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 5533000; upkeep 32903000; owner earnings 69614000. Growth capex / owner earnings = 0.07948113885138047.

- Source: https://www.sec.gov/Archives/edgar/data/1039399/000103939926000009/form-20251227.htm (filed 2026-02-20); FY2025: growth capex 6602244.917154357; upkeep 97055755.08284564; owner earnings 4237244.917154357. Growth capex / owner earnings = 1.5581456928357786.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Incremental return on capital 0.32337605286962273, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,8025000],[2020,15450000],[2021,0],[2022,0],[2023,1],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1039399/000103939926000009/form-20251227.htm (filed 2026-02-20); FY2025: cash repurchases 26244000 USD.

### Are managers owners

Insiders own 0.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FORM.US SharesStats.PercentInsiders = 0.758 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 28.4% yearly over ten years; actual decline was 13.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.40327795228037233. Price 113.34; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.23522904062229905 → FY2025 0.05410653297861603. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $8.98 per share

- 2016-11: $11.20 per share

- 2016-12: $11.20 per share

- 2017-01: $12.45 per share

- 2017-02: $10.65 per share

- 2017-03: $11.85 per share

- 2017-04: $11.10 per share

- 2017-05: $14.70 per share

- 2017-06: $12.40 per share

- 2017-07: $13.10 per share

- 2017-08: $15.10 per share

- 2017-09: $16.85 per share

- 2017-10: $18.20 per share

- 2017-11: $16.40 per share

- 2017-12: $15.65 per share

- 2018-01: $14.35 per share

- 2018-02: $13.10 per share

- 2018-03: $13.65 per share

- 2018-04: $11.48 per share

- 2018-05: $13.55 per share

- 2018-06: $13.30 per share

- 2018-07: $12.95 per share

- 2018-08: $15.45 per share

- 2018-09: $13.75 per share

- 2018-10: $12.24 per share

- 2018-11: $16.49 per share

- 2018-12: $14.09 per share

- 2019-01: $15.02 per share

- 2019-02: $15.85 per share

- 2019-03: $16.09 per share

- 2019-04: $18.95 per share

- 2019-05: $14.36 per share

- 2019-06: $15.67 per share

- 2019-07: $16.78 per share

- 2019-08: $17.09 per share

- 2019-09: $18.65 per share

- 2019-10: $21.83 per share

- 2019-11: $23.14 per share

- 2019-12: $25.97 per share

- 2020-01: $25.31 per share

- 2020-02: $22.37 per share

- 2020-03: $20.09 per share

- 2020-04: $23.30 per share

- 2020-05: $25.17 per share

- 2020-06: $29.33 per share

- 2020-07: $28.84 per share

- 2020-08: $26.13 per share

- 2020-09: $24.93 per share

- 2020-10: $28.35 per share

- 2020-11: $41.00 per share

- 2020-12: $43.02 per share

- 2021-01: $40.87 per share

- 2021-02: $45.37 per share

- 2021-03: $45.11 per share

- 2021-04: $39.15 per share

- 2021-05: $35.25 per share

- 2021-06: $36.46 per share

- 2021-07: $37.26 per share

- 2021-08: $38.88 per share

- 2021-09: $37.33 per share

- 2021-10: $39.78 per share

- 2021-11: $41.92 per share

- 2021-12: $45.72 per share

- 2022-01: $42.74 per share

- 2022-02: $40.49 per share

- 2022-03: $42.03 per share

- 2022-04: $38.11 per share

- 2022-05: $41.06 per share

- 2022-06: $38.73 per share

- 2022-07: $35.56 per share

- 2022-08: $29.28 per share

- 2022-09: $25.05 per share

- 2022-10: $20.21 per share

- 2022-11: $23.07 per share

- 2022-12: $22.23 per share

- 2023-01: $28.14 per share

- 2023-02: $30.10 per share

- 2023-03: $31.85 per share

- 2023-04: $27.31 per share

- 2023-05: $31.29 per share

- 2023-06: $34.22 per share

- 2023-07: $37.16 per share

- 2023-08: $35.32 per share

- 2023-09: $34.94 per share

- 2023-10: $33.88 per share

- 2023-11: $37.58 per share

- 2023-12: $41.71 per share

- 2024-01: $38.77 per share

- 2024-02: $43.03 per share

- 2024-03: $45.63 per share

- 2024-04: $44.59 per share

- 2024-05: $54.72 per share

- 2024-06: $60.53 per share

- 2024-07: $53.56 per share

- 2024-08: $48.77 per share

- 2024-09: $46.00 per share

- 2024-10: $37.98 per share

- 2024-11: $40.06 per share

- 2024-12: $44.00 per share

- 2025-01: $40.05 per share

- 2025-02: $33.30 per share

- 2025-03: $28.29 per share

- 2025-04: $28.14 per share

- 2025-05: $29.85 per share

- 2025-06: $34.41 per share

- 2025-07: $28.41 per share

- 2025-08: $29.19 per share

- 2025-09: $36.42 per share

- 2025-10: $54.95 per share

- 2025-11: $55.02 per share

- 2025-12: $55.78 per share

- 2026-01: $70.49 per share

- 2026-02: $98.88 per share

- 2026-03: $96.99 per share

- 2026-04: $135.93 per share

- 2026-05: $124.59 per share

- 2026-06: $159.93 per share

- 2026-07: $106.20 per share

- 2026-08: $100.61 per share

- 2026-09: $149.31 per share

- 2026-10: $113.34 per share

## Annual estimated value (USD per share)

- FY2016: low $2.91 per share, central $3.10 per share, high $3.35 per share

- FY2017: low $5.63 per share, central $6.17 per share, high $6.88 per share

- FY2018: low $7.68 per share, central $8.57 per share, high $9.66 per share

- FY2019: low $12.47 per share, central $14.87 per share, high $16.90 per share

- FY2020: low $15.05 per share, central $18.21 per share, high $20.75 per share

- FY2021: low $15.33 per share, central $16.99 per share, high $19.20 per share

- FY2022: low $14.09 per share, central $15.64 per share, high $17.70 per share

- FY2023: low $12.95 per share, central $14.19 per share, high $15.82 per share

- FY2024: low $14.58 per share, central $15.98 per share, high $17.85 per share

- FY2025: low $13.32 per share, central $14.69 per share, high $16.53 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1039399/000103939926000009/form-20251227.htm); period 2025-12-27, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.