SWX:FORN

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


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


Market Performance


7 Day Return

1.3%

FORN

0.3%

CH Consumer Durables

-0.6%

CH Market


1 Year Return

6.4%

FORN

10.1%

CH Consumer Durables

10.7%

CH Market

Return vs Industry: FORN underperformed the Swiss Consumer Durables industry which returned 10.1% over the past year.

Return vs Market: FORN underperformed the Swiss Market which returned 10.7% over the past year.


Shareholder returns

FORNIndustryMarket
7 Day1.3%0.3%-0.6%
30 Day3.6%1.9%-0.4%
90 Day-9.2%2.6%1.1%
1 Year7.8%6.4%17.1%10.1%16.6%10.7%
3 Year22.7%17.9%38.0%19.1%35.5%21.9%
5 Year64.6%53.8%91.2%51.9%36.8%15.3%

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?

17.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FORN (CHF1523) is trading above our estimate of fair value (CHF1422.95)

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 (17.6x) compared to the Consumer Durables industry average (12.4x).

PE vs Market: FORN is good value based on its PE Ratio (17.6x) compared to the Swiss market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: FORN is poor value based on its PEG Ratio (8.9x)


Price to Book Ratio

PB vs Industry: FORN is overvalued based on its PB Ratio (4x) 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 8 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FORN's forecast earnings growth (2% per year) is below the savings rate (3.3%).

Earnings vs Market: FORN's earnings (2% per year) are forecast to grow slower than the Swiss market (10.4% per year).

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

Revenue vs Market: FORN's revenue (1.4% per year) is forecast to grow slower than the Swiss market (3.5% per year).

High Growth Revenue: FORN's revenue (1.4% 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 (17.3%).


Next Steps

Past Performance

How has Forbo Holding performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FORN's earnings have declined by -0.5% per year over the past 5 years.

Accelerating Growth: FORN's earnings growth over the past year (10.9%) exceeds its 5-year average (-0.5% per year).

Earnings vs Industry: FORN earnings growth over the past year (10.9%) exceeded the Consumer Durables industry 1.9%.


Return on Equity

High ROE: FORN's Return on Equity (23%) is considered high.


Return on Assets

ROA vs Industry: FORN has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: FORN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Forbo Holding's financial position?


Financial Position Analysis

Short Term Liabilities: FORN's short term assets (CHF598.8M) exceeds its short term liabilities (CHF272.8M)

Long Term Liabilities: FORN's short term assets (598.8M) exceeds its long term liabilities (163.1M)


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 0.1%.

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

Inventory Level: FORN has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if FORN's debt is covered by short term assets.


Next Steps

Dividend

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

1.38%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.9%markettop25%3.7%industryaverage5.0%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FORN's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.92%).

High Dividend: FORN's dividend (1.38%) is low compared to the top 25% of dividend payers in the Swiss market (3.71%).

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 low payout ratio (24.3%), 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 (26% payout ratio).


Next Steps

Management

What is the CEO of Forbo Holding's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Stephan Bauer (58yo)

5.8yrs

Tenure

CHF1,148,034

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 ($USD1.16M) is about average for companies of similar size in the Swiss market ($USD1.58M).

Compensation vs Earnings: Insufficient data to compare Stephan's compensation with company performance.


Management Age and Tenure

4.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: FORN's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: FORN's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • This Schneider (67yo)

    Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: CHF3.00m
  • Karin Marti

    Head of Corporate Communications

    • Tenure: 0yrs
  • Nicole Häfeli

    Secretary of the Board

    • Tenure: 0yrs
  • Urs Christen

    Head of Corporate Development & Investor Relations

    • Tenure: 0yrs
  • Jean-Michel Wins (52yo)

    Executive VP of Flooring Systems & Member of Executive Board

    • Tenure: 6.8yrs
  • Stephan Bauer (58yo)

    Chairman of the Executive Board & CEO

    • Tenure: 5.8yrs
    • Compensation: CHF1.15m
  • Urs Uehlinger (53yo)

    CFO & Member of Executive Board

    • Tenure: 2.8yrs
  • Marc Deimling

    Executive VP of Movement Systems & Member of Executive Board

    • Tenure: 1.8yrs

Board Members

  • Michael Pieper (73yo)

    Vice Chairman

    • Tenure: 14.6yrs
    • Compensation: CHF157.64k
  • This Schneider (67yo)

    Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: CHF3.00m
  • Peter Altorfer (66yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: CHF205.49k
  • Vincent Studer (57yo)

    Non-Executive Director

    • Tenure: 10.5yrs
    • Compensation: CHF164.84k
  • Reto Müller (68yo)

    Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: CHF140.49k
  • Claudia Coninx-Kaczynski (46yo)

    Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: CHF142.97k

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: CHF2.439b
  • 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 Analysis2019/10/23 21:01
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.