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FORM (FormFactor) Gross Margin % : 40.74% (As of Sep. 2024)


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What is FormFactor Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. FormFactor's Gross Profit for the three months ended in Sep. 2024 was $84.7 Mil. FormFactor's Revenue for the three months ended in Sep. 2024 was $207.9 Mil. Therefore, FormFactor's Gross Margin % for the quarter that ended in Sep. 2024 was 40.74%.


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

FORM' s Gross Margin % Range Over the Past 10 Years
Min: 26.75   Med: 39.45   Max: 41.94
Current: 40.72


During the past 13 years, the highest Gross Margin % of FormFactor was 41.94%. The lowest was 26.75%. And the median was 39.45%.

FORM's Gross Margin % is ranked better than
72.18% of 985 companies
in the Semiconductors industry
Industry Median: 28.33 vs FORM: 40.72

FormFactor had a gross margin of 40.74% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for FormFactor was -0.40% per year.


FormFactor Gross Margin % Historical Data

The historical data trend for FormFactor's Gross 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 Gross Margin % Chart

FormFactor Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 40.29 41.51 41.94 39.58 39.00

FormFactor Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross 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 40.38 40.40 37.18 44.01 40.74

Competitive Comparison of FormFactor's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, FormFactor's Gross Margin %, along with its competitors' market caps and Gross 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 Gross Margin % Distribution in the Semiconductors Industry

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

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



FormFactor Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

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

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=258.6 / 663.102
=(Revenue - Cost of Goods Sold) / Revenue
=(663.102 - 404.522) / 663.102
=39.00 %

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


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=84.7 / 207.917
=(Revenue - Cost of Goods Sold) / Revenue
=(207.917 - 123.212) / 207.917
=40.74 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


FormFactor  (NAS:FORM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

FormFactor had a gross margin of 40.74% for the quarter that ended in Sep. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


FormFactor Gross Margin % Related Terms

Thank you for viewing the detailed overview of FormFactor's Gross 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
Dennis Thomas St director C/O FORMFACTOR, INC., 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
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