Is the business good?
How good a business is FORM?
FormFactor, Inc. earns 7.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
7.2%
Return on invested capital · cost of capital 9.0% · 1.8 points below what the capital costs: growth destroys value
- Operating margin
- 8.4%
Operating margin · Semiconductor Equipment & Materials median 8.4% · 12 months to Q1 2026
- Cash conversion
- 0.54×
Cash conversion · 1.19× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +2.0%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 13% |
| FY2022 | 7.3% |
| FY2023 | 12% |
| FY2024 | 8.5% |
| FY2025 | 7.3% |
Details›
- Gross margin12 months to Q1 2026
- 39%
- Operating margin12 months to Q1 2026
- 8.4%
- Net margin12 months to Q1 2026
- 8.1%
- Free cash flow margin
- 4.3%
- R&D as % of revenue
- 14%
- Revenue, trailing twelve months
- $840M
- Free cash flow, trailing twelve months
- $37M
- Net income, trailing twelve months
- $68M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Semiconductor Equipment & Materials
Ranks #15 of 22 by Smart Score