SWX:FORN

Stock Analysis Report

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Executive Summary

Forbo Holding AG produces and sells floor coverings, building and construction adhesives, and power transmission and conveyor belt solutions in Switzerland and internationally. More Details

Rewards

PE ratio (21.3x) is below the Swiss market (21.7x)

Earnings are forecast to grow 15.6% per year

Risk Analysis

No risks detected for FORN from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Forbo Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FORN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

FORN

-0.5%

CH Consumer Durables

-1.9%

CH Market


1 Year Return

-4.8%

FORN

-6.3%

CH Consumer Durables

1.7%

CH Market

Return vs Industry: FORN exceeded the Swiss Consumer Durables industry which returned -6.3% over the past year.

Return vs Market: FORN underperformed the Swiss Market which returned 1.7% over the past year.


Shareholder returns

FORNIndustryMarket
7 Day-4.2%-0.5%-1.9%
30 Day-1.0%4.1%-3.1%
90 Day0.7%4.7%-1.6%
1 Year-2.9%-4.8%-3.5%-6.3%5.2%1.7%
3 Year1.0%-3.7%-6.3%-18.9%17.9%5.6%
5 Year40.9%30.9%32.4%5.5%35.0%12.5%

Price Volatility Vs. Market

How volatile is Forbo Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Forbo Holding undervalued compared to its fair value and its price relative to the market?

21.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FORN (CHF1450) is trading above our estimate of fair value (CHF1317.61)

Significantly Below Fair Value: FORN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FORN is poor value based on its PE Ratio (21.3x) compared to the XE Consumer Durables industry average (14.8x).

PE vs Market: FORN is good value based on its PE Ratio (21.3x) compared to the Swiss market (21.7x).


Price to Earnings Growth Ratio

PEG Ratio: FORN is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: FORN is overvalued based on its PB Ratio (3.6x) compared to the XE Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Forbo Holding forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FORN's forecast earnings growth (15.6% per year) is above the savings rate (-0.2%).

Earnings vs Market: FORN's earnings (15.6% per year) are forecast to grow faster than the Swiss market (11.2% per year).

High Growth Earnings: FORN's earnings are forecast to grow, but not significantly.

Revenue vs Market: FORN's revenue (4.1% per year) is forecast to grow slower than the Swiss market (4.5% per year).

High Growth Revenue: FORN's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FORN's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has Forbo Holding performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FORN has high quality earnings.

Growing Profit Margin: FORN's current net profit margins (9.3%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: FORN's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: FORN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FORN had negative earnings growth (-22.3%) over the past year, making it difficult to compare to the Consumer Durables industry average (-22.3%).


Return on Equity

High ROE: FORN's Return on Equity (17%) is considered low.


Next Steps

Financial Health

How is Forbo Holding's financial position?


Financial Position Analysis

Short Term Liabilities: FORN's short term assets (CHF626.8M) exceed its short term liabilities (CHF251.2M).

Long Term Liabilities: FORN's short term assets (CHF626.8M) exceed its long term liabilities (CHF163.0M).


Debt to Equity History and Analysis

Debt Level: FORN is debt free.

Reducing Debt: FORN has no debt compared to 5 years ago when its debt to equity ratio was 0.03%.

Debt Coverage: FORN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FORN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Forbo Holding current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FORN's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.91%).

High Dividend: FORN's dividend (1.59%) is low compared to the top 25% of dividend payers in the Swiss market (3.7%).


Stability and Growth of Payments

Stable Dividend: FORN's dividends per share have been stable in the past 10 years.

Growing Dividend: FORN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.8%), FORN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FORN's dividends in 3 years are forecast to be well covered by earnings (29.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Stephan Bauer (59 yo)

6.75yrs

Tenure

CHF887,441

Compensation

Mr. Stephan Bauer has been the Chief Executive Officer of Forbo International SA since January 2014 and serves as its Member of Executive Board. Mr. Bauer has been Chairman of the Executive Board and Chief ...


CEO Compensation Analysis

Compensation vs Market: Stephan's total compensation ($USD981.45K) is below average for companies of similar size in the Swiss market ($USD1.94M).

Compensation vs Earnings: Stephan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
This Schneider
Executive Chairman6.5yrsCHF3.01m2.41%
CHF 56.0m
Stephan Bauer
Chairman of the Executive Board & CEO6.75yrsCHF887.44k0.17%
CHF 3.9m
Urs Uehlinger
CFO & Member of Executive Board3.75yrsno data0.012%
CHF 272.6k
Jean-Michel Wins
Executive VP of Flooring Systems & Member of Executive Board7.75yrsno data0.0084%
CHF 194.3k
Marc Deimling
Executive VP of Movement Systems & Member of Executive Board2.75yrsno data0.0025%
CHF 58.0k
Urs Christen
Head of Corporate Development & Investor Relationsno datano datano data
Karin Marti
Head of Corporate Communicationsno datano datano data
Nicole Häfeli
Secretary of the Boardno datano datano data

5.3yrs

Average Tenure

54yo

Average Age

Experienced Management: FORN's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
This Schneider
Executive Chairman6.5yrsCHF3.01m2.41%
CHF 56.0m
Michael Pieper
Independent Non Executive Vice Chairman15.58yrsCHF157.58k30.4%
CHF 705.9m
Peter Altorfer
Independent Non Executive Vice Chairmanno dataCHF203.47k0.084%
CHF 1.9m
Vincent Studer
Non-Executive Director11.5yrsCHF164.92k0.060%
CHF 1.4m
Reto Müller
Non-Executive Director9.5yrsCHF140.50k0.042%
CHF 968.7k
Claudia Coninx-Kaczynski
Independent Non Executive Director6.5yrsCHF142.98k0.015%
CHF 359.7k

9.5yrs

Average Tenure

67.5yo

Average Age

Experienced Board: FORN's board of directors are considered experienced (9.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Forbo Holding AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Forbo Holding AG
  • Ticker: FORN
  • Exchange: SWX
  • Founded: 1928
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: CHF2.322b
  • Shares outstanding: 1.60m
  • Website: https://www.forbo.com

Number of Employees


Location

  • Forbo Holding AG
  • Lindenstrasse 8
  • Baar
  • Zug
  • 6340
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBOH.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDAug 1986
FOZNDB (Deutsche Boerse AG)YesRegistered SharesDEEURAug 1986
FORNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFAug 1986
0QKDLSE (London Stock Exchange)YesRegistered SharesGBCHFAug 1986
FORNESWX (SIX Swiss Exchange)CHF0.10 NO.2 LINECHCHFApr 2012
FBOH.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2013

Biography

Forbo Holding AG produces and sells floor coverings, building and construction adhesives, and power transmission and conveyor belt solutions in Switzerland and internationally. The company operates through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 20:46
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.