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FORM (FormFactor) Operating Margin % : 8.59% (As of Sep. 2024)


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What is FormFactor Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. FormFactor's Operating Income for the three months ended in Sep. 2024 was $17.9 Mil. FormFactor's Revenue for the three months ended in Sep. 2024 was $207.9 Mil. Therefore, FormFactor's Operating Margin % for the quarter that ended in Sep. 2024 was 8.59%.

Warning Sign:

FormFactor Inc operating margin has been in a 5-year decline. The average rate of decline per year is -20.4%.

The historical rank and industry rank for FormFactor's Operating Margin % or its related term are showing as below:

FORM' s Operating Margin % Range Over the Past 10 Years
Min: -7.35   Med: 7.08   Max: 12.74
Current: 4.01


FORM's Operating Margin % is ranked worse than
53.42% of 994 companies
in the Semiconductors industry
Industry Median: 5.015 vs FORM: 4.01

FormFactor's 5-Year Average Operating Margin % Growth Rate was -20.40% per year.

FormFactor's Operating Income for the three months ended in Sep. 2024 was $17.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $43.5 Mil.


FormFactor Operating Margin % Historical Data

The historical data trend for FormFactor's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

FormFactor Operating Margin % Chart

FormFactor Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.42 12.08 12.74 7.34 1.48

FormFactor Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.58 4.24 0.61 8.84 8.59

Competitive Comparison of FormFactor's Operating Margin %

For the Semiconductor Equipment & Materials subindustry, FormFactor's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


FormFactor's Operating Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, FormFactor's Operating Margin % distribution charts can be found below:

* The bar in red indicates where FormFactor's Operating Margin % falls into.



FormFactor Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

FormFactor's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=9.803 / 663.102
=1.48 %

FormFactor's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=17.855 / 207.917
=8.59 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


FormFactor  (NAS:FORM) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


FormFactor Operating Margin % Related Terms

Thank you for viewing the detailed overview of FormFactor's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


FormFactor Business Description

Traded in Other Exchanges
Address
7005 Southfront Road, Livermore, CA, USA, 94551
FormFactor Inc designs, develops, manufactures, sells, and supports semiconductor probe card products. The company operates in two reportable segments namely Probe Cards Segment and the Systems Segment. Sales of probe cards and analytical probes are included in the Probe Cards Segment, while sales of probe stations and thermal sub-systems are included in the Systems Segment. Probe cards generate the maximum revenue from its operations. It offers multiple product lines which include analytical probes, probe stations, thermal sub-systems, and related services.
Executives
Mike Slessor director, officer: CEO 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Jorge Titinger director 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Rebeca Obregon-jimenez director 3748 E MARE COURT, PHOENIX AZ 85044
Brian C White director C/O INTEGRATED DEVICE TECHNOLOGY, INC., 6024 SILVER CREEK VALLEY ROAD, SAN JOSE CA 95138
Lothar Maier director 1630 MCCARTHY BLVD, MILPITAS CA 95035
Dennis Thomas St director C/O FORMFACTOR, INC., 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Sheri Rhodes director 7001 EAST BELLEVIEW AVENUE, DENVER CO 80112
Shai Shahar officer: CFO, SVP Global Finance 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Kelley Steven-waiss director 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Raymond A Link director C/O FORMFACTOR, INC., 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Edward Jr Rogas director C/O VITESSE SEMICONDUCTOR CORPORATION, 4721 CALLE CARGA, CAMARILLO CA 93012
Michael W Zellner director C/O CYAN, INC., 1383 N. MCDOWELL BLVD., SUITE 300, PETALUMA CA 94954
Richard Delateur director C/O FORMFACTOR, INC., 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Michael M Ludwig officer: SR VP, CFO C/O AMTECH SYSTEMS, INC., 131 S CLARK DRIVE, TEMPE AZ 85288
Stuart L Merkadeau officer: SVP and General Counsel 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551