FARO Technologies, Inc. (FARO) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
FARO Technologies, Inc. (FARO) trades at $43.99 with AI Score 46/100 (Grade C). FARO Technologies, Inc. specializes in 3D measurement, imaging, and realization solutions. Market cap: $850M, Sector: Technology.
Price as of Jul 20, 2026 · Last analyzed: May 10, 2026Analyst Coverage for FARO: FARO does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FARO against Technology peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
FARO: 1/3 scored disciplines lean bearish. Dominant signal: Ken Griffin bearish.
How is this calculated? →Why this analysis is different
- A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
FARO Technologies, Inc. (FARO) Technology Profile & Competitive Position
FARO Technologies, Inc. designs and manufactures 3D measurement and imaging solutions, serving industries like manufacturing, construction, and public safety. With a focus on software-driven precision, FARO offers products like FaroArm and Laser Tracker, addressing needs for metrology, reverse engineering, and factory automation in a competitive global market.
What Is the Investment Thesis for FARO?
FARO Technologies, Inc. presents a compelling investment case based on its established position in the 3D measurement and imaging solutions market. The company's focus on software-driven precision and its diverse product portfolio cater to a wide range of industries, including manufacturing, construction, and public safety. A key value driver is the increasing demand for 3D measurement solutions in factory automation and quality control, driven by the need for improved efficiency and accuracy. Ongoing catalysts include the expansion of FARO's product offerings and strategic partnerships to penetrate new markets. However, potential risks include intense competition and the cyclical nature of capital equipment spending. With a market capitalization of $850M and a gross margin of 56.9%, FARO demonstrates financial stability. The company's ability to innovate and adapt to evolving market demands will be crucial for sustained growth.
Based on FMP financials and quantitative analysis
FARO Key Highlights
- FARO Technologies, Inc. operates in the 3D measurement and imaging solutions market, providing hardware and software products.
- The company's gross margin stands at 56.9%, indicating strong pricing power and efficient cost management.
- FARO serves diverse sectors, including manufacturing, construction, and public safety, reducing reliance on any single industry.
- FARO's product portfolio includes FaroArm, Laser Tracker, and Laser Projector, offering a range of solutions for different applications.
- The company's market capitalization is $0.85 billion, reflecting its established position in the market.
Who Are FARO's Competitors?
FARO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| DAKT Daktronics, Inc. | $19.46 | +1.78% | $940M | 78 |
| LYTS LSI Industries Inc. | $23.93 | -1.52% | $746M | 59 |
| KRKNF Kraken Robotics Inc. | $4.15 | -0.95% | $1.27B | 62 |
| MEI Methode Electronics, Inc. | $15.23 | +1.60% | $540M | 70 |
| VPG Vishay Precision Group, Inc. | $102.54 | -1.30% | $1.36B | 75 |
| ALNT Allient Inc. | $86.61 | -1.21% | $1.47B | 71 |
| CTS CTS Corporation | $59.20 | -0.34% | $1.69B | 80 |
| AMANF Amano Corporation | $24.86 | -1.04% | $1.72B | 56 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FARO's Key Strengths?
- Strong brand reputation in the 3D measurement industry.
- Diverse product portfolio serving multiple sectors.
- Global presence with operations in North America, Europe, and Asia.
- Technological expertise and innovation capabilities.
What Are FARO's Weaknesses?
- Negative profit margin indicating profitability challenges.
- High beta value suggesting higher volatility compared to the market.
- Dependence on capital equipment spending cycles.
- Intense competition in the 3D measurement market.
What Could Drive FARO Stock Higher?
- New product launches in Q3 2026 targeting the construction and public safety sectors.
- Expansion of software solutions to enhance data analysis and collaboration capabilities.
- Strategic partnerships to expand market reach and product offerings.
What Are the Key Risks for FARO?
- Negative return on equity (-0.0%) — the business is not currently generating profit on shareholder capital.
- Insider selling — insiders were net sellers of roughly $27.9M recently.
- Economic downturns affecting capital equipment spending.
- Technological advancements by competitors.
- Intense competition in the 3D measurement market.
- Currency fluctuations impacting international sales.
What Are the Growth Opportunities for FARO?
- Expansion in Factory Automation: The increasing adoption of automation in manufacturing processes presents a significant growth opportunity for FARO. The market for factory automation is projected to reach $370 billion by 2027, driven by the need for improved efficiency and reduced costs. FARO's 3D measurement solutions can play a crucial role in optimizing manufacturing processes, enhancing quality control, and reducing errors. By focusing on this sector, FARO can leverage its expertise and technology to capture a larger share of the growing market.
- Penetration of the Construction Industry: The construction industry is increasingly adopting building information modeling (BIM) and 3D scanning technologies to improve project planning, execution, and management. The global BIM market is expected to reach $15 billion by 2028. FARO's ScanPlan and Laser Scanning Portfolio offer solutions for capturing accurate 3D data of construction sites, enabling better collaboration, clash detection, and progress monitoring. By targeting this sector, FARO can capitalize on the growing demand for 3D measurement solutions in construction.
- Growth in Public Safety Applications: The use of 3D scanning and imaging in public safety applications, such as crime scene investigation and accident reconstruction, is expanding. FARO's solutions can provide law enforcement agencies and forensic investigators with accurate and detailed 3D data for documenting and analyzing scenes. The market for 3D scanning in public safety is expected to grow as agencies recognize the benefits of this technology. FARO can leverage its expertise and technology to capture a larger share of this market.
- Development of Advanced Software Solutions: FARO's software solutions, which integrate with its hardware products, are crucial for providing customers with comprehensive workflows and applications. Investing in the development of advanced software features, such as automated data processing, real-time analysis, and cloud-based collaboration, can enhance the value of FARO's offerings and attract new customers. By focusing on software innovation, FARO can differentiate itself from competitors and strengthen its position in the market.
- Strategic Partnerships and Acquisitions: Forming strategic partnerships with companies in complementary industries, such as software developers, system integrators, and technology providers, can expand FARO's reach and enhance its product offerings. Acquisitions of companies with innovative technologies or established customer bases can also accelerate FARO's growth and strengthen its competitive position. By pursuing strategic partnerships and acquisitions, FARO can expand its capabilities and capture new market opportunities.
What Opportunities Does FARO Have?
- Expansion in emerging markets with growing industrialization.
- Increasing adoption of 3D scanning in construction and public safety.
- Development of advanced software solutions for data analysis.
- Strategic partnerships and acquisitions to expand product offerings.
What Threats Does FARO Face?
- Economic downturns affecting capital equipment spending.
- Technological advancements by competitors.
- Changes in industry standards and regulations.
- Currency fluctuations impacting international sales.
What Are FARO's Competitive Advantages?
- Technological Expertise: FARO has a long history of innovation in 3D measurement and imaging, giving it a technological edge over competitors.
- Brand Reputation: FARO has built a strong brand reputation for providing high-quality and reliable products.
- Switching Costs: Customers who have invested in FARO's hardware and software solutions face high switching costs.
- Installed Base: FARO has a large installed base of customers, providing a recurring revenue stream.
What Does FARO Do?
Founded in 1981 and headquartered in Lake Mary, Florida, FARO Technologies, Inc. has evolved into a global leader in software-driven three-dimensional measurement, imaging, and realization solutions. The company's journey began with a vision to transform measurement technology, and it has since developed a comprehensive portfolio of products catering to a wide range of industries. FARO's core offerings include the FaroArm, a portable articulated measurement arm integrated with CAM2 software, and the FARO Laser Tracker, a large-volume laser measurement tool also paired with CAM2 software. These products enable precise 3D measurement and analysis for applications such as metrology, reverse engineering, and factory automation. FARO also provides the FARO Laser Projector, which offers virtual templating for accurate component positioning, and the FARO Laser Scanning Portfolio, designed for collecting dense point cloud data. Additionally, the company offers FARO ScanPlan, a handheld mapper for capturing 2D floor plans, and FARO Software, which integrates with its hardware products to facilitate data merging and collaborative workflows. FARO's solutions are utilized across various sectors, including building information modeling (BIM), public safety, and other specialized applications. The company operates globally, with a presence in North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific region, serving a diverse customer base with its advanced 3D measurement technology.
What Products and Services Does FARO Offer?
- Designs and develops 3D measurement and imaging devices.
- Manufactures portable coordinate measurement machines (CMMs).
- Offers laser trackers for large-volume metrology applications.
- Provides 3D laser scanners for capturing detailed point cloud data.
- Develops software solutions for data processing and analysis.
- Supports various industries including manufacturing, construction, and public safety.
- Offers solutions for reverse engineering and quality control.
How Does FARO Make Money?
- Sells hardware products such as FaroArm, Laser Tracker, and Laser Scanner.
- Generates revenue from software licenses and subscriptions.
- Provides maintenance and support services for its products.
- Offers training and consulting services to customers.
What Industry Does FARO Operate In?
FARO Technologies, Inc. operates within the hardware, equipment, and parts industry, which is experiencing growth driven by increasing demand for automation and precision measurement solutions. The market is competitive, with companies vying for market share by offering advanced technologies and customized solutions. Key trends include the adoption of 3D scanning and imaging in various industries, such as manufacturing, construction, and healthcare. FARO's focus on software-driven solutions and its diverse product portfolio position it to capitalize on these trends. The company competes with other players in the market by offering innovative products and services that meet the evolving needs of its customers.
Who Are FARO's Key Customers?
- Manufacturing companies using FARO's solutions for quality control and inspection.
- Construction firms employing FARO's technology for BIM and site surveying.
- Public safety agencies utilizing FARO's products for crime scene investigation.
- Engineering firms using FARO's solutions for reverse engineering and product design.
FARO Valuation & Market Position
With a $850M market cap, FARO Technologies, Inc. sits in the small-cap segment of the market. Relative to its peer group, FARO's quantitative score of 46/100 is below the peer average of 69/100.
FY2026 estForward Outlook
Wall Street analysts project FARO Technologies, Inc. revenue of about $367.3M for fiscal 2026, with EPS near $1.64.
F-Score 4/9Financial Health
FARO Technologies, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.24 places it in the safe zone, indicating low near-term bankruptcy risk.
ROE -0%Key Financial Metrics
Return on equity for FARO Technologies, Inc. stands at -0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -0.0%, showing how much profit it generates from its asset base. Its free cash flow yield is 1.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.31 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -0.0%, the inverse of the P/E and a quick read on earnings relative to price.
Net sellingInsider Activity
The most recent 12 insider filings for FARO Technologies, Inc. break down as 12 sales and 0 purchases. On net that is roughly 969K shares disposed (about $27.9M), a signal worth weighing alongside the fundamentals.
FARO Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2024
Bull Case vs Bear Case
Bull Case
- Strong brand reputation in the 3D measurement industry.
- Diverse product portfolio serving multiple sectors.
- Global presence with operations in North America, Europe, and Asia.
- Technological expertise and innovation capabilities.
Bear Case
- Negative profit margin indicating profitability challenges.
- High beta value suggesting higher volatility compared to the market.
- Dependence on capital equipment spending cycles.
- Intense competition in the 3D measurement market.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
FARO Latest News
No recent news available for FARO.
FARO Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FARO.
Price Targets
Wall Street price target analysis for FARO.
FARO MoonshotScore
What does this score mean?
The MoonshotScore rates FARO 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Classification
Industry Hardware, Equipment & PartsLeadership: Peter James Lau
CEO
Peter James Lau serves as the CEO of FARO Technologies, Inc. His career spans various leadership roles in technology and manufacturing sectors. Prior to joining FARO, he held executive positions at leading companies, demonstrating expertise in strategic planning, operational excellence, and market development. His educational background includes advanced degrees in engineering and business administration, providing a strong foundation for his leadership role at FARO. He brings a wealth of experience in driving growth and innovation in technology-driven organizations.
Track Record: Since assuming the role of CEO, Peter James Lau has focused on driving innovation and expanding FARO's market presence. Key achievements include the introduction of new products and solutions, strategic partnerships, and initiatives to improve operational efficiency. Under his leadership, FARO has continued to strengthen its position as a leading provider of 3D measurement and imaging solutions. His strategic decisions have contributed to the company's growth and success in a competitive market.
Common Questions About FARO (Technology)
What does the AI Score mean for FARO?
FARO holds an AI Score of 46/100 (Grade: C). This is an educational research signal, not a buy or sell recommendation. FARO Technologies, Inc. specializes in 3D measurement, imaging, and realization solutions. Their products cater to diverse applications, including metrology, factory automation, and public safety …
What does FARO Technologies, Inc. do?
FARO Technologies, Inc. specializes in designing, developing, and manufacturing 3D measurement, imaging, and realization solutions. The company's core offerings include hardware products like the FaroArm, Laser Tracker, and Laser Scanner, along with integrated software solutions.
What do analysts say about FARO stock?
Analyst coverage of FARO Technologies, Inc. reflects a generally neutral sentiment, with expectations of moderate growth driven by increasing demand for 3D measurement solutions. Key valuation metrics, such as price-to-earnings and price-to-sales ratios, are closely monitored to assess the company's financial performance. Analysts consider FARO's ability to innovate and expand its product offerings as crucial for sustained growth.
What are the main risks for FARO?
FARO Technologies, Inc. faces several risks, including intense competition in the 3D measurement market, which could pressure pricing and market share. Economic downturns can affect capital equipment spending, impacting demand for FARO's products. Technological advancements by competitors could render FARO's solutions obsolete. Currency fluctuations can impact international sales and profitability.
What are the key factors to evaluate for FARO?
FARO Technologies, Inc. (FARO) holds an AI score of 46/100 (low). Not financial advice.
How frequently does FARO data refresh on this page?
FARO's price was last updated on Jul 20, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven FARO's recent stock price performance?
FARO Technologies, Inc. (FARO) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong brand reputation in the 3D measurement industry. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FARO overvalued or undervalued right now?
FARO Technologies, Inc. (FARO) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research FARO before investing?
Before investing in FARO Technologies, Inc. (FARO), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are based on the most recent reporting period.