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Market Cap

UK£661.0m

Last Updated

2021/05/10 04:24 UTC

Data Sources

Company Financials +

Executive Summary

Forterra plc manufactures and sells masonry products in the United Kingdom. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FORT is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FORT's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

FORT

1.4%

GB Basic Materials

2.1%

GB Market


1 Year Return

28.4%

FORT

45.8%

GB Basic Materials

26.3%

GB Market

Return vs Industry: FORT underperformed the UK Basic Materials industry which returned 45.8% over the past year.

Return vs Market: FORT exceeded the UK Market which returned 26.3% over the past year.


Shareholder returns

FORTIndustryMarket
7 Day-0.9%1.4%2.1%
30 Day-0.5%4.3%3.5%
90 Day4.1%15.6%8.8%
1 Year28.4%28.4%46.6%45.8%31.9%26.3%
3 Year-4.3%-10.9%14.3%7.6%12.9%-0.1%
5 Year92.3%72.3%73.5%59.2%51.5%22.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FORT (£2.9) is trading below our estimate of fair value (£9.26)

Significantly Below Fair Value: FORT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FORT is unprofitable, so we can't compare its PE Ratio to the GB Basic Materials industry average.

PE vs Market: FORT is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FORT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FORT is overvalued based on its PB Ratio (3.2x) compared to the GB Basic Materials industry average (2.5x).


Future Growth

How is Forterra forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FORT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: FORT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FORT's is expected to become profitable in the next 3 years.

Revenue vs Market: FORT's revenue (11% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: FORT's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FORT's Return on Equity is forecast to be low in 3 years time (19.7%).


Past Performance

How has Forterra performed over the past 5 years?

-1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FORT is currently unprofitable.

Growing Profit Margin: FORT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FORT is unprofitable, and losses have increased over the past 5 years at a rate of 1.8% per year.

Accelerating Growth: Unable to compare FORT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FORT is unprofitable, making it difficult to compare its past year earnings growth to the Basic Materials industry (-42.6%).


Return on Equity

High ROE: FORT has a negative Return on Equity (-2.74%), as it is currently unprofitable.


Financial Health

How is Forterra's financial position?


Financial Position Analysis

Short Term Liabilities: FORT's short term assets (£100.8M) exceed its short term liabilities (£72.7M).

Long Term Liabilities: FORT's short term assets (£100.8M) exceed its long term liabilities (£31.1M).


Debt to Equity History and Analysis

Debt Level: FORT's debt to equity ratio (7.6%) is considered satisfactory.

Reducing Debt: FORT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: FORT's debt is well covered by operating cash flow (260%).

Interest Coverage: FORT is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

What is Forterra current dividend yield, its reliability and sustainability?

0.97%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 10 2021Ex Dividend DateJun 17 2021Dividend Pay DateJul 09 202122 days from Ex DividendBuy in the next 38 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: FORT's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: FORT's dividend (0.97%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


Stability and Growth of Payments

Stable Dividend: FORT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FORT has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: FORT is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: FORT's dividends in 3 years are forecast to be well covered by earnings (42.6% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Stephen Harrison (52 yo)

5.08yrs

Tenure

UK£748,689

Compensation

Mr. Stephen Harrison has been the Chief Executive Officer at Forterra plc since April 2016 has been its Director since January 21, 2016. Mr. Harrison served as the Managing Director of Hanson Building Prod...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD1.05M) is about average for companies of similar size in the UK market ($USD959.26K).

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


Leadership Team

Experienced Management: FORT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: FORT's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: FORT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.6%.


Top Shareholders

Company Information

Forterra plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Forterra plc
  • Ticker: FORT
  • Exchange: LSE
  • Founded: 2016
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: UK£661.046m
  • Shares outstanding: 228.34m
  • Website: https://forterraplc.co.uk

Number of Employees


Location

  • Forterra plc
  • 5 Grange Park Court
  • Roman Way
  • Northampton
  • Northamptonshire
  • NN4 5EA
  • United Kingdom

Listings


Biography

Forterra plc manufactures and sells masonry products in the United Kingdom. It operates through three segments: Bricks, Blocks, and Bespoke Products. The company offers bricks; aircrete and aggregate block...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/10 04:24
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.