Forterra
Market Cap
US$1.5b
Last Updated
2021/02/25 23:37 UTC
Data Sources
Company Financials +
Executive Summary
Forterra, Inc. manufactures and sells pipe and precast products the United States, Canada, and Mexico. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value 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: FRTA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: FRTA's weekly volatility has decreased from 15% to 7% over the past year.
Market Performance
7 Day Return
10.5%
FRTA
4.5%
US Basic Materials
-3.2%
US Market
1 Year Return
78.8%
FRTA
44.4%
US Basic Materials
38.9%
US Market
Return vs Industry: FRTA exceeded the US Basic Materials industry which returned 46.1% over the past year.
Return vs Market: FRTA exceeded the US Market which returned 37.1% over the past year.
Shareholder returns
| FRTA | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.5% | 4.5% | -3.2% |
| 30 Day | 16.5% | 13.5% | -0.8% |
| 90 Day | 23.1% | 23.2% | 3.1% |
| 1 Year | 78.8%78.8% | 45.7%44.4% | 42.0%38.9% |
| 3 Year | 219.3%219.3% | 38.2%34.7% | 60.6%50.3% |
| 5 Year | n/a | 91.2%83.7% | 128.0%102.5% |
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
2 weeks ago | Simply Wall St
Here's Why We Think Forterra's (NASDAQ:FRTA) Statutory Earnings Might Be Conservative1 month ago | Simply Wall St
Should You Be Excited About Forterra, Inc.'s (NASDAQ:FRTA) 20% Return On Equity?1 month ago | Simply Wall St
Forterra (NASDAQ:FRTA) Seems To Use Debt Quite SensiblyValuation
Is Forterra undervalued compared to its fair value and its price relative to the market?
48.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FRTA ($23.28) is trading below our estimate of fair value ($45.48)
Significantly Below Fair Value: FRTA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FRTA is good value based on its PE Ratio (23.6x) compared to the US Basic Materials industry average (29x).
PE vs Market: FRTA is poor value based on its PE Ratio (23.6x) compared to the US market (21.7x).
Price to Earnings Growth Ratio
PEG Ratio: FRTA is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: FRTA is overvalued based on its PB Ratio (7.9x) compared to the US Basic Materials industry average (2.6x).
Next Steps
Future Growth
How is Forterra forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
33.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FRTA's forecast earnings growth (33.6% per year) is above the savings rate (2%).
Earnings vs Market: FRTA's earnings (33.6% per year) are forecast to grow faster than the US market (20.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FRTA's revenue (4.7% per year) is forecast to grow slower than the US market (10.4% per year).
High Growth Revenue: FRTA's revenue (4.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FRTA's Return on Equity is forecast to be high in 3 years time (29.9%)
Next Steps
Past Performance
How has Forterra performed over the past 5 years?
46.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FRTA has high quality earnings.
Growing Profit Margin: FRTA became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: FRTA has become profitable over the past 5 years, growing earnings by 46.7% per year.
Accelerating Growth: FRTA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: FRTA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (23.3%).
Return on Equity
High ROE: Whilst FRTA's Return on Equity (33.28%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Forterra's financial position?
Financial Position Analysis
Short Term Liabilities: FRTA's short term assets ($486.5M) exceed its short term liabilities ($278.9M).
Long Term Liabilities: FRTA's short term assets ($486.5M) do not cover its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: FRTA's debt to equity ratio (451.5%) is considered high.
Reducing Debt: FRTA's debt to equity ratio has reduced from 1320.9% to 451.5% over the past 5 years.
Debt Coverage: FRTA's debt is well covered by operating cash flow (27.8%).
Interest Coverage: FRTA's interest payments on its debt are not well covered by EBIT (2x coverage).
Balance Sheet
Next Steps
Dividend
What is Forterra current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FRTA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FRTA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FRTA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FRTA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of FRTA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Karl Watson (55 yo)
1.58yrs
Tenure
US$7,811,078
Compensation
Mr. Karl H. Watson, Jr., has been the Chief Executive Officer & Director at Forterra, Inc. since July 1, 2019. Mr. Watson serves as Executive Vice President and Chief Operating Officer of Summit Materials,...
CEO Compensation Analysis
Compensation vs Market: Karl's total compensation ($USD7.81M) is above average for companies of similar size in the US market ($USD3.70M).
Compensation vs Earnings: Insufficient data to compare Karl's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.58yrs | US$7.81m | 1.6% $ 24.4m | |
| Executive VP & CFO | 3.42yrs | US$1.97m | 0.25% $ 3.8m | |
| Executive VP | 5.92yrs | US$1.27m | 0.094% $ 1.4m | |
| President of Water Pipe & Products | no data | US$1.23m | 0.14% $ 2.1m | |
| Vice President of Treasury & Investor Relations | no data | no data | no data | |
| Senior Vice President of Human Resources | 2.08yrs | no data | no data | |
| Senior Vice President of Stormwater Management Systems | 5.08yrs | no data | no data | |
| Senior Vice President and General Manager of Bricks | 10.33yrs | US$973.99k | no data | |
| Senior VP and GM of Drainage Pipe & Products -South (KY | no data | no data | no data | |
| Executive Vice President of Business Development - Stormwater Management Systems | no data | no data | no data | |
| Senior Vice President of Marketing & Sales - U.S. Pipe | no data | no data | no data | |
| VP & Corporate Controller | no data | no data | no data |
4.3yrs
Average Tenure
50yo
Average Age
Experienced Management: FRTA's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.58yrs | US$7.81m | 1.6% $ 24.4m | |
| Independent Director | 4.33yrs | US$182.50k | 0.025% $ 380.4k | |
| Non-Independent Director | 2.83yrs | no data | no data | |
| Independent Director | 4.33yrs | US$202.50k | 0.091% $ 1.4m | |
| Independent Non-Executive Vice Chairman & Lead Director | 1.67yrs | US$499.37k | 0.093% $ 1.4m | |
| Non-Independent Director | 2.83yrs | no data | no data | |
| Chairman | 3.58yrs | no data | 0.095% $ 1.5m | |
| Non-Independent Director | 1yr | no data | no data | |
| Non-Independent Director | 2.42yrs | no data | no data |
2.8yrs
Average Tenure
49yo
Average Age
Experienced Board: FRTA's board of directors are not considered experienced ( 2.8 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Forterra, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Forterra, Inc.
- Ticker: FRTA
- Exchange: NasdaqGS
- Founded: 1899
- Industry: Construction Materials
- Sector: Materials
- Market Cap: US$1.529b
- Shares outstanding: 65.67m
- Website: https://www.forterrabp.com
Number of Employees
Location
- Forterra, Inc.
- 511 East John Carpenter Freeway
- 6th Floor
- Irving
- Texas
- 75062
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FRTA | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Oct 2016 |
| 05G | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 2016 |
Biography
Forterra, Inc. manufactures and sells pipe and precast products the United States, Canada, and Mexico. It operates through Drainage Pipe & Products; and Water Pipe & Products segments. The company offers c...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/25 23:37 |
| End of Day Share Price | 2021/02/25 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.