LSE:FORT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


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


Market Performance


7 Day Return

2.2%

LSE:FORT

1.1%

GB Basic Materials

1.1%

GB Market


1 Year Return

5.7%

LSE:FORT

-3.5%

GB Basic Materials

-0.3%

GB Market

FORT outperformed the Basic Materials industry which returned -2.7% over the past year.

FORT outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.1% over the past year.


Share holder returns

FORTIndustryMarket
7 Day2.2%1.1%1.1%
30 Day6.5%4.4%4.4%
90 Day-2.8%-2.6%0.2%
1 Year9.7%5.7%-0.7%-3.5%4.5%-0.3%
3 Year89.3%72.0%35.0%25.6%21.4%6.9%
5 Yearn/a67.5%53.5%31.8%4.1%

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 based on future cash flows and its price relative to the stock market?

38%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Forterra's share price is below the future cash flow value, and at a moderate discount (> 20%).

Forterra's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Forterra is good value based on earnings compared to the GB Basic Materials industry average.

Forterra is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Forterra is poor value based on expected growth next year.


Price Based on Value of Assets

Forterra is overvalued based on assets compared to the GB Basic Materials industry average.


Next Steps

Future Growth

How is Forterra expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Forterra's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).

Forterra's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Forterra's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Forterra's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Forterra's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Forterra is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Forterra performed over the past 5 years?

30.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Forterra has delivered over 20% year on year earnings growth in the past 5 years.

Forterra's 1-year earnings growth is less than its 5-year average (11% vs 30.5%)

Forterra's earnings growth has not exceeded the GB Basic Materials industry average in the past year (11% vs 54.5%).


Return on Equity

Forterra has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Forterra used its assets more efficiently than the GB Basic Materials industry average last year based on Return on Assets.


Return on Capital Employed

Forterra has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Forterra's financial position?


Financial Position Analysis

Forterra is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Forterra's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Forterra's level of debt (47.8%) compared to net worth is high (greater than 40%).

Forterra had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (108.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 30.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

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

4.54%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Forterra's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).

Forterra's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.5%).

Whilst dividend payments have been stable, Forterra has been paying a dividend for less than 10 years.

Dividend payments have increased, but Forterra only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Stephen Harrison (51yo)

3.4yrs

Tenure

UK£859,644

Compensation

Mr. Stephen Harrison has been the Chief Executive Officer at Forterra plc since April 26, 2016 has been its Executive Director since January 21, 2016. Mr. Harrison served as the Managing Director of Hanson ...


CEO Compensation Analysis

Stephen's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Stephen's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.4yrs

Average Tenure

52.5yo

Average Age

The tenure for the Forterra management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

53.5yo

Average Age

The average tenure for the Forterra board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUK£1,395,00003 May 19
Forterra Plc, Employee Benefit Trust
EntityCompany
Shares450,000
Max PriceUK£3.10
BuyUK£2,97702 Apr 19
Katherine Christina Mary Ker
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares1,000
Max PriceUK£2.98
BuyUK£10,86820 Nov 18
Stephen Harrison
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares5,050
Max PriceUK£2.15
BuyUK£52,07819 Nov 18
Shatish Dasani
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares23,930
Max PriceUK£2.20

Ownership Breakdown


Management Team

  • Shatish Dasani (56yo)

    CFO & Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£618.67k
  • Stephen Harrison (51yo)

    CEO & Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£859.64k
  • Ben Guyatt (43yo)

    Director of Finance & Company Secretary

    • Tenure: 3.7yrs
  • George Stewart (54yo)

    Operations Director

    • Tenure: 0yrs
  • Ed Haslam

    Human Resources Director

    • Tenure: 2.5yrs
  • Peter Varnsverry

    Managing Director of Bison Precast

    • Tenure: 0.7yrs

Board Members

  • Justin Atkinson (59yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: UK£68.20k
  • Martin Sutherland (49yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£51.20k
  • Robin Ker (59yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.3yrs
    • Compensation: UK£58.20k
  • Divya Seshamani (40yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£55.20k
  • Shatish Dasani (56yo)

    CFO & Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£618.67k
  • Stephen Harrison (51yo)

    CEO & Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£859.64k
  • Vince Niblett

    Independent Non-Executive Director

    • Tenure: 0.6yrs

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£551.635m
  • Shares outstanding: 195.69m
  • Website: https://forterraplc.co.uk

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FORTLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 2016
FORTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 2016
F0TDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2016
FTTR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2016

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 Analysis2019/09/17 22:20
End of Day Share Price2019/09/17 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.