Stock Price & Analysis

Based on current market conditions and analysis, FORM stock is trading near oversold levels with an RSI of 43.76, suggesting potential exhaustion of selling pressure. However, recent downgrades and weak guidance indicate caution.

The price prediction for FORM stock in 2025 is expected to reach $34.00, driven by potential recovery in demand and contributions from quantum computing advancements. However, if market conditions remain challenging, the stock may drop to $29.00.

The S1 support level for FORM Stock is $28.27 ,The R1 resistant level for FORM Stock is $32.56.

As of the end of day on 2025-04-01, the price of FORM Stock was $28.37.

The target price for FORM Stock according to analyst rating is 41.67, with the highest price target at 51.00 and the lowest at 34.00. Analysts have a Moderate Buy rating on FORM Stock overall.

The market cap of FORM is $2.2B.

Analysis and Insights

To determine whether FormFactor Inc (FORM) is overvalued, we analyze its financial performance, valuation metrics, and market sentiment.

Valuation Metrics:

FormFactor's current valuation metrics suggest potential overvaluation:

• P/E Ratio: 26.71 (Q4 2024)
• EV/EBITDA: 41.94 (Q4 2024)
• P/S Ratio: 4.91 (Q4 2024)

These metrics are higher than industry averages, indicating that the stock may be trading at a premium relative to its earnings and revenue.

Financial Performance:

• Revenue Growth: While revenue has grown steadily, net income has declined in recent quarters, raising concerns about profitability.
• Net Income: $9.705 million in Q4 2024, down from $21.781 million in Q1 2024.
• Gross Profit: $73.58 million in Q4 2024, showing consistent growth but not enough to offset declining net income.

Market Sentiment:

• Analyst Ratings: Mixed sentiment, with some analysts downgrading the stock to "Hold" and others maintaining a "Buy" rating.
• RSI: The stock entered oversold territory with an RSI of 29.6, suggesting potential exhaustion of selling pressure.

Recent Developments:

• Quantum Computing: FormFactor's innovations in cryogenic probe stations position it well in the growing quantum computing sector, a positive long-term catalyst.
• Technical Oversold Conditions: The stock's low RSI and recent price dip ($31.66 as of March 25, 2025) may indicate a buying opportunity for some investors.

Conclusion:

While FormFactor's high valuation metrics and declining net income suggest overvaluation, its oversold technical condition and positive developments in quantum computing could justify its current price. Investors should weigh these factors carefully.

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FormFactor, Inc. is a provider of essential test and measurement technologies along the full semiconductor product lifecycle from characterization, modeling, reliability, and design de-bug to qualification and production test. It provides a range of high-performance probe cards, analytical probes, probe stations, thermal systems, and cryogenic systems to both semiconductor companies and scientific institutions. Its products provide electrical information from a variety of semiconductor and electro-optical devices and integrated circuits from early research, through development, to high-volume production. It operates in two segments: Probe Cards and the Systems. The Probe Cards segment includes sales of its probe cards and analytical probes. The Systems segment includes sales of its probe stations, thermal systems and cryogenic systems. The Company's customers include companies, universities and institutions that design or make semiconductor and semiconductor related products.

Price Prediction for FORM Stock by 2030

Based on current trends and analysis, the price prediction for FORM stock by 2030 is $80 per share, driven by its strong position in quantum computing and semiconductor testing. The stock is expected to benefit from growing demand in AI and high-bandwidth memory, with potential upside due to its innovative cryogenic probe stations.

FORM has a total of 2115 employees.