Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip-testing equipment maker FormFactor
With that in mind, let's take a closer look at FormFactor's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Livermore, Calif. (1993)|
|Market Cap||$528.3 million|
|Trailing-12-Month Revenue||$189.3 million|
CEO Thomas St. Dennis (since 2010)
CFO Richard DeLateur (since 2010)
|Return on Equity (average, past 3 years)||(25.4%)|
|Cash/Debt||$333.2 million / $0|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 1,561 members who have rated FormFactor believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Anders Bylund (TMFZahrim), who is ranked in the top 2% of our community, and markofzorro.
Late last month, Anders tapped FormFactor as an upturning opportunity: "I liked the early gumption [CEO] St. Dennis showed two quarters ago, I like the improvements he's making to the company, and I totally get why FormFactor is a five-star CAPS stock today. This turnaround story is happening."
Currently, FormFactor even sports a cheapish price-to-book of 1.3. That represents a discount to other semiconductor service stocks such as Advantest (2.0), Cascade (1.4), and Kulicke & Soffa
CAPS member markofzorro expands on FormFactor as a stock priced for imperfection:
The turn around team seems headed in the right direction. Its a solid product and demand should grow much faster than that for chips.
Plenty of risks: that the turnaround fails, that companies postpone new computer purchases, that PCs and personal hardware demand suddenly falls and stays down.
That said, the stock is cheap now.
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