Key statistics

Is FORM a good stock to buy in 2026?

FormFactor (FORM) stock appears significantly overvalued based on its P/E ratio of 185.27x, which far exceeds the Semiconductors sector average of 46.1x. Furthermore, a Discounted Cash Flow (DCF) analysis suggests a fair value of just $11.14, indicating a substantial -91.4% overvaluation compared to the current price. Despite these valuation concerns, a notable 47.4% of analysts currently rate FORM stock as a “Buy,” suggesting some optimism for its future prospects.

2026 FORM price scenarios

Based on analyst consensus of $76.29 from 19 analysts. Not a prediction by Alert Invest.

About FormFactor, Inc. (FORM)

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions. It operates in two segments, Probe Cards and Systems. The company offers probe cards to test various semiconductor device types, including systems on a chip products, mobile application processors, microprocessors, microcontrollers, and graphic processors, as well as radio frequency, ana

FormFactor, Inc. operates at the forefront of the semiconductor industry, specializing in critical test and measurement equipment. Led by CEO Michael D. Slessor, the company employs 2,238 dedicated professionals, focusing on developing and manufacturing advanced probe cards, analytical probes, and various testing systems essential for the production of cutting-edge microprocessors, mobile application processors, and other crucial semiconductor devices. Their distinctive strength lies in providing high-precision solutions that enable manufacturers to ensure the quality and reliability of complex chips before they reach the market.

FORM competitive moat and business analysis

FormFactor operates in a highly specialized niche within the semiconductor equipment market, providing essential testing solutions. While its net margin of 6.93% indicates a profitable operation, it’s not exceptionally wide, suggesting a competitive environment. The company’s N/A ROE and ROIC figures make it difficult to definitively assess its capital efficiency, but a strong focus on proprietary technology in probe cards and testing systems likely offers some level of competitive advantage. This specialization, combined with the high R&D costs and technical expertise required, creates barriers to entry for new competitors.

The provided data indicates revenue breakdown for FormFactor, Inc. for fiscal year 2025 across its two segments: Probe Cards and Systems. The data also encompasses geographical revenue distribution for the same period. This detailed segmental and geographical information is crucial for understanding the company’s market penetration and its reliance on specific product lines or regions, offering insights into its market presence and potential areas for future expansion or vulnerability.

FormFactor’s revenue growth of 2.8% indicates a moderate expansion, reflecting the cyclical nature and technological demands of the semiconductor industry. To maintain and strengthen its competitive moat, the company must continually innovate and adapt to rapid changes in chip design and manufacturing processes. Sustained investment in R&D and strategic partnerships are vital for FormFactor to secure its position against emerging technologies and competitive pressures, ensuring that its testing solutions remain indispensable to top-tier semiconductor firms.

Comparing FORM stock against peers like Ambarella (AMBA), Camtek (CAMT), and DLocal (DLO) is essential for a comprehensive FORM valuation. While all operate within the broader technology sector, their specific niches vary, impacting their respective competitive advantages and growth trajectories. Analyzing FORM’s financial metrics against these peers, especially in terms of profitability and growth, helps to determine if FormFactor is effectively leveraging its market position or facing stronger competition. Such comparisons are crucial for investors evaluating if FORM is a good stock to add to their portfolio relative to other sector players.

FormFactor, Inc. analyst rating

Based on 19 analysts. 47.4% rate FORM Buy or Strong Buy.

A 47.4% “Buy” rating for FORM stock among 19 analysts, with an equal percentage on “Hold”, presents a somewhat balanced, yet leaning positive, sentiment. While a higher “Strong Buy” percentage might be desired in the fast-paced Technology sector, this consensus still suggests a significant portion of experts see upside potential for FormFactor, Inc.

Is FORM undervalued or overvalued?

FORM valuation appears significantly stretched when examining its Price-to-Earnings (P/E) ratio. With a P/E of 185.27x, FormFactor trades at a substantial premium compared to the Semiconductors sector average of 46.1x. This indicates that investors are currently willing to pay a much higher price for FORM’s earnings than for its industry peers, which could suggest expectations of very high future growth that may already be priced into the stock.

Further reinforcing the overvaluation concern for FORM stock is the Discounted Cash Flow (DCF) analysis, which estimates a fair value of only $11.14. This DCF valuation implies a dramatic -91.4% difference from its current trading price, suggesting that, from a fundamental perspective, FormFactor’s intrinsic value is considerably lower than its market capitalization of $10.12 billion. Investors concerned about FORM valuation should carefully consider this significant discrepancy.

FORM financial health & key metrics

For value investors assessing FORM stock, the financial health presents a mixed picture. While FormFactor boasts an exceptionally low debt-to-equity ratio of 0.04x, indicating strong financial solvency, and a current ratio of 4.5x suggesting ample liquidity, other metrics raise red flags. The P/E ratio of 185.27x is significantly higher than the sector average, and the DCF fair value of $11.14 points to a substantial overvaluation. A low net margin of 6.93% and a weak FCF yield of 0.12% further suggest that while the company is financially stable in terms of debt, its operational efficiency and current FORM valuation make it challenging to consider FORM a good stock from a strict value perspective.

FormFactor, Inc. earnings history & next report

FormFactor, Inc. reported EPS of $0.46, beating estimates by 31.43%. Next earnings: 2026-04-29 with EPS estimate of $0.45.

FormFactor, Inc. is set to report its next earnings on 2026-04-29, with an EPS estimate of $0.45. Given the previous quarter’s beat of $0.46 against estimates by 31.43%, investors will be keenly watching for continued positive momentum. Key areas to focus on during the upcoming report will be any updates on forward revenue guidance, particularly regarding the projected $1.0B for the next fiscal year, and commentary on demand trends in the semiconductor testing market, which will significantly impact future FORM stock performance.

FORM daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

FORM insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent FORM analyst rating changes

FormFactor, Inc. stock news today

How does FORM compare to its peers?

To gain a deeper understanding of FormFactor, Inc.’s competitive standing and relative FORM valuation, it’s beneficial to compare its performance against key industry peers. While FORM is a leader in semiconductor test equipment, examining how it measures up against other technology companies provides crucial context for investment decisions. This comparison can highlight relative strengths in growth, profitability, or market position within the broader semiconductor and technology landscape.

FAQ — FormFactor, Inc. (FORM) stock