FARO Technologies Inc Stock Research

Market Summary

USD23.27+0.03

Market Closed

0.13%

FARO Alerts

Big jump in Earnings (Y/Y)
Losses in recent quarter

FARO Stock Price

FARO RSI Chart

FARO Valuation

Market Cap

437.0M

Price/Earnings (Trailing)

-16.33

Price/Sales (Trailing)

1.26

EV/EBITDA

-52.06

Price/Free Cashflow

-13.99

FARO Price/Sales (Trailing)

FARO Profitability

EBT Margin

-6.26%

Return on Equity

-8.6%

Return on Assets

-5.65%

Free Cashflow Yield

-7.15%

FARO Fundamentals

FARO Revenue

Revenue (TTM)

345.8M

Revenue Y/Y

3.65%

Revenue Q/Q

21.71%

FARO Earnings

Earnings (TTM)

-26.8M

Earnings Y/Y

92.95%

Earnings Q/Q

64.3%

Price Action

52 Week Range

22.6154.95

(Low)(High)

Last 7 days

-7.6%

Last 30 days

-12.5%

Last 90 days

-17.7%

Trailing 12 Months

-51.5%

FARO Financial Health

Current Ratio

2.06

FARO Investor Care

Shares Dilution (1Y)

3.15%

Diluted EPS (TTM)

-1.46

Peers (Alternatives to FARO Tech)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
APH	46.9B	12.6B	-6.25%	4.16%	24.64	3.71	16.06%	19.58%
KEYS	33.7B	5.4B	-16.06%	3.20%	30.02	6.23	9.69%	25.73%
ZBRA	14.9B	5.8B	-9.79%	-25.66%	30.01	2.57	2.74%	-44.68%
TRMB	12.1B	3.7B	-12.70%	-26.09%	26.91	3.29	0.47%	-8.73%
MID-CAP
CGNX	8.5B	1.0B	-11.86%	-28.23%	39.56	8.47	-2.99%	-22.99%
DLB	8.0B	1.2B	-4.23%	12.59%	43.34	6.43	-0.48%	-28.07%
COHR	6.6B	-	9.93%	-44.73%	57.31	4.28	-	-
IIVI	5.1B	4.4B	-21.15%	-32.16%	570.37	1.14	38.72%	-97.10%
BMI	3.4B	565.6M	-5.77%	21.12%	51.07	6	11.95%	9.22%
ITRI	2.3B	1.8B	-9.11%	10.55%	-241.02	1.31	-9.39%	88.02%
SMALL-CAP
MEI	1.5B	1.2B	-16.24%	-0.16%	15.83	1.29	-0.75%	-27.24%
TTMI	1.3B	2.5B	-12.14%	-4.95%	13.24	0.52	13.87%	14.08%
FARO	437.0M	345.8M	-12.51%	-51.54%	-16.33	1.26	2.35%	33.05%
MICT	115.7M	51.2M	-15.81%	40.30%	-2.9	2.26	25.97%	-8.50%
CODA	76.4M	22.2M	-4.70%	6.79%	17.77	3.44	4.19%	-13.07%

Financials for FARO Tech

Income Statement (Last 12 Months)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	1.1%	345,765,000	342,109,000	335,946,000	338,139,000	337,814,000
Gross Profit	-2.6%	175,763,000	180,435,000	179,501,000	184,546,000	183,927,000
Operating Expenses	0.4%	200,686,000	199,848,000	196,996,000	193,736,000	192,363,000
S&GA Expenses	1.4%	146,657,000	144,593,000	140,800,000	138,376,000	136,234,000
R&D Expenses	0.7%	49,415,000	49,053,000	49,198,000	48,916,000	48,761,000
EBITDA	-163.1%	-7,668,000	-2,915,000	-2,888,000	2,358,000	-
EBITDA Margin	-160.3%	-0.02	-0.01	-0.01	0.01	-
Earnings Before Taxes	-28.8%	-21,651,000	-16,812,000	-16,650,000	-10,915,000	-8,561,000
EBT Margin	-27.4%	-0.06	-0.05	-0.05	-0.03	-
Interest Expenses	-	55,000	-	-	-	-
Net Income	52.4%	-26,756,000	-56,234,000	-53,828,000	-46,430,000	-39,964,000
Net Income Margin	52.9%	-0.08	-0.16	-0.16	-0.14	-
Free Cahsflow	-34.4%	-31,227,000	-23,229,000	-12,871,000	-18,157,000	-

Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	6.3%	473	445	443	468	480
Current Assets	5.1%	219	209	242	261	273
Cash Equivalents	-22.1%	38.00	49.00	102	107	122
Inventory	-1.8%	50.00	51.00	44.00	54.00	53.00
Goodwill	5.8%	107	101	80.00	82.00	82.00
Liabilities	11.3%	162	146	145	151	153
Current Liabilities	12.2%	106	95.00	94.00	98.00	99.00
Shareholder's Equity	3.9%	311	299	298	317	326
Retained Earnings	-4.6%	47.00	49.00	55.00	64.00	74.00
Additional Paid-In Capital	0.9%	328	325	306	303	301
Shares Outstanding	0.0%	19.00	19.00	18.00	20.00	18.00

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	-54.8%	-24.86	-16.06	-4.43	-10.23	-13.48
Share Based Compensation	3.9%	13.00	13.00	12.00	12.00	11.00
Cashflow From Investing	-3.4%	-49.90	-48.25	-17.01	-48.36	-45.74
Cashflow From Financing	39.3%	-1.00	-1.64	-0.92	-1.09	2.00

Risks for FARO

What is the probability of a big loss on FARO?

96.5%

Probability that FARO Tech stock will be more than 20% underwater in next one year

69.6%

Probability that FARO Tech stock will be more than 30% underwater in next one year.

55.4%

Probability that FARO Tech stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does FARO drawdown profile look like?

Y-axis is the maximum loss one would have experienced if FARO Tech was unfortunately bought at previous high price.

Drawdowns

Returns for FARO

Cumulative Returns on FARO

-5.5%

10-Year Cumulative Returns

-3.8%

7-Year Cumulative Returns

-16.0%

5-Year Cumulative Returns

-19.6%

3-Year Cumulative Returns

What are the long-term rolling returns for FARO?

FIve years rolling returns for FARO Tech.

Annualized Returns

Which funds bought or sold FARO recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-06	Rockefeller Capital Management L.P.	unchanged	-	-	-	-%
2023-02-28	Voya Investment Management LLC	new	-	211,958	211,958	-%
2023-02-22	TEACHERS RETIREMENT SYSTEM OF THE STATE OF KENTUCKY	unchanged	-	9,000	140,000	-%
2023-02-21	MACQUARIE GROUP LTD	sold off	-	-7,000	-	-%
2023-02-16	WHITE PINE CAPITAL LLC	reduced	-1.73	27,262	537,262	0.21%
2023-02-15	MetLife Investment Management, LLC	unchanged	-	20,041	299,041	-%
2023-02-15	CAPTRUST FINANCIAL ADVISORS	new	-	245,692	245,692	-%
2023-02-15	PROSPECTOR PARTNERS LLC	reduced	-40.6	-1,321,430	2,314,570	0.32%
2023-02-15	State of Tennessee, Treasury Department	added	51.55	212,000	552,000	-%
2023-02-15	PUBLIC EMPLOYEES RETIREMENT SYSTEM OF OHIO	added	7.6	51,000	384,000	-%

Latest Funds Activity

Are funds buying FARO calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own FARO

No. of Funds

FARO Tech News

Schedule 13G FIlings of FARO Tech

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 09, 2023	vanguard group inc	11.87%	2,230,070	SC 13G/A
Jan 27, 2023	royce & associates lp	4.67%	876,422	SC 13G/A
Jan 26, 2023	blackrock inc.	17.5%	3,291,903	SC 13G/A
Jan 20, 2023	blackrock inc.	17.5%	3,291,903	SC 13G/A
Feb 10, 2022	vanguard group inc	10.91%	1,985,479	SC 13G/A
Jan 27, 2022	blackrock inc.	17.3%	3,140,666	SC 13G/A
Jan 26, 2022	blackrock inc.	17.3%	3,140,666	SC 13G
Jan 14, 2022	royce & associates lp	5.92%	1,076,984	SC 13G/A
Feb 16, 2021	segall bryant & hamill, llc	5.2%	933,394	SC 13G
Feb 16, 2021	paradice investment management llc	4.5%	805,605	SC 13G/A

FARO Fair Value

FARO Tech fair value in different scenarios

The table shows the Fair Value estimates for FARO Tech for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	10.10 -56.60%	12.14 -47.83%	14.43 -37.99%	16.57 -28.79%	22.90 -1.59%
Current Inflation	9.81 -57.84%	11.69 -49.76%	13.79 -40.74%	15.37 -33.95%	20.78 -10.70%
Very High Inflation	9.42 -59.52%	11.11 -52.26%	12.96 -44.31%	13.93 -40.14%	18.28 -21.44%

Historical FARO Tech Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of FARO Tech

View All Filings

Date Filed	Form Type	Document
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Feb 15, 2023	8-K	Current Report
Feb 15, 2023	10-K	Annual Report
Feb 09, 2023	SC 13G/A	Major Ownership Report
Feb 02, 2023	4	Insider Trading
Feb 02, 2023	3	Insider Trading
Jan 27, 2023	SC 13G/A	Major Ownership Report
Jan 26, 2023	SC 13G/A	Major Ownership Report

Latest Insider Trading transactions for FARO

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-01	SEXTON JEFFREY D	acquired	-	-	9,057	vice president of global sales
2023-03-01	MUHICH ALLEN L.	acquired	-	-	16,604	chief financial officer
2023-03-01	BURGER MICHAEL D	acquired	-	-	57,358	president and ceo
2023-02-01	Ahsan Jawad A	acquired	-	-	3,448	-
2022-07-26	MUHICH ALLEN L.	sold (taxes)	-31,661	30.98	-1,022	chief financial officer
2022-07-26	MUHICH ALLEN L.	acquired	-	-	3,147	chief financial officer
2022-07-25	Ramanathan Rajani	acquired	-	-	3,189	-
2022-06-17	BURGER MICHAEL D	acquired	-	-	10,421	president and ceo
2022-06-17	BURGER MICHAEL D	sold (taxes)	-146,219	31.23	-4,682	president and ceo
2022-05-27	VAN ROTTERDAM JEROEN	acquired	-	-	5,412	-

About FARO Tech

Michael D. Burger

www.faro.com

1430

FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven three-dimensional measurement, imaging, and realization solutions in North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers FaroArm, a combination of a portable articulated measurement arm, a computer, and CAM2 software programs; FARO Laser Tracker, a combination of a portable large-volume laser measurement tool, a computer, and CAM2 software programs; FARO Laser Projector, which provides a virtual template that operators and assemblers can use to quickly and accurate position components; and FARO Laser Scanning Portfolio to measure and collect a cloud of data points. It also provides FARO ScanPlan, a handheld mapper that captures two-dimensional floor plans; and FARO Software, a software solution that integrate with FARO hardware products to merge data and provide collaborative workflows and applications. The company offers its products for metrology, reverse engineering, factory automation, building information modeling, public safety, and other applications. FARO Technologies, Inc. was founded in 1981 and is headquartered in Lake Mary, Florida.

FARO Income Statement

2022-12-31

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SALES
Sales	$ 345,765	$ 337,814	$ 303,768
COST OF SALES
Total cost of sales	170,002	153,887	143,921
GROSS PROFIT	175,763	183,927	159,847
OPERATING EXPENSES
Selling, general and administrative	146,657	136,234	131,827
Research and development	49,415	48,761	42,896
Restructuring costs	4,614	7,368	15,806
Total operating expenses	200,686	192,363	190,529
LOSS FROM OPERATIONS	(24,923)	(8,436)	(30,682)
OTHER (INCOME) EXPENSE
Other (income) expense, net	(3,236)	70	431
Interest (income) expense	(36)	55	(340)
LOSS BEFORE INCOME TAX EXPENSE (BENEFIT)	(21,651)	(8,561)	(30,773)
INCOME TAX EXPENSE (BENEFIT)	5,105	31,403	(31,402)
NET (LOSS) INCOME	$ (26,756)	$ (39,964)	$ 629
NET (LOSS) INCOME PER SHARE - BASIC (in dollars per share)	$ (1.46)	$ (2.20)	$ 0.04
NET (LOSS) INCOME PER SHARE - DILUTED (in dollars per share)	$ (1.46)	$ (2.20)	$ 0.04
Weighted average shares - Basic (in shares)	18,318,191	18,187,946	17,769,958
Weighted average shares - Diluted (in shares)	18,318,191	18,187,946	17,926,324
Product
SALES
Sales	$ 265,280	$ 251,103	$ 218,587
COST OF SALES
Total cost of sales	123,836	109,024	98,864
Service
SALES
Sales	80,485	86,711	85,181
COST OF SALES
Total cost of sales	$ 46,166	$ 44,863	$ 45,057

FARO Balance Sheet

2022-12-31

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 37,812	$ 121,989
Accounts receivable, net	90,326	78,523
Inventories, net	50,026	53,145
Prepaid expenses and other current assets	41,201	19,793
Total current assets	219,365	273,450
Non-current assets:
Property, plant and equipment, net	19,720	22,194
Operating lease right-of-use asset	18,989	22,543
Goodwill	107,155	82,096
Intangible assets, net	48,978	25,616
Service and sales demonstration inventory, net	30,904	30,554
Deferred income tax assets, net	24,192	21,277
Other long-term assets	4,044	2,010
Total assets	473,347	479,740
Current liabilities:
Accounts payable	27,286	14,199
Accrued liabilities	23,345	28,208
Income taxes payable	6,767	4,499
Current portion of unearned service revenues	36,407	40,838
Customer deposits	6,725	5,399
Lease liability	5,709	5,738
Total current liabilities	106,239	98,881
Unearned service revenues - less current portion	20,947	22,350
Lease liability - less current portion	14,649	18,648
Deferred income tax liabilities	11,708	1,058
Income taxes payable - less current portion	8,706	11,297
Other long-term liabilities	49	1,047
Total liabilities	162,298	153,281
Commitments and contingencies - See Note 12
Shareholders’ equity:
Preferred stock - par value $0.01, 10,000,000 shares authorized; none issued	0	0
Common stock - par value $0.001, 50,000,000 shares authorized; 20,156,233 and 19,588,003 issued; 18,780,013 and 18,205,636 outstanding, respectively	20	20
Additional paid-in capital	328,227	301,061
Retained earnings	46,788	73,544
Accumulated other comprehensive loss	(33,331)	(17,374)
Common stock in treasury, at cost - 1,376,220 and 1,382,367 shares held, respectively	(30,655)	(30,792)
Total shareholders’ equity	311,049	326,459
Total liabilities and shareholders’ equity	$ 473,347	$ 479,740