NasdaqGS:FRTA

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Executive Summary

Forterra, Inc. manufactures and sells pipe and precast products in the United States, Canada, and Mexico. More Details


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

0.7%

FRTA

-2.3%

US Basic Materials

-3.4%

US Market


1 Year Return

74.9%

FRTA

33.5%

US Basic Materials

29.4%

US Market

Return vs Industry: FRTA exceeded the US Basic Materials industry which returned 39.3% over the past year.

Return vs Market: FRTA exceeded the US Market which returned 36.6% over the past year.


Shareholder returns

FRTAIndustryMarket
7 Day0.7%-2.3%-3.4%
30 Day20.6%13.3%0.6%
90 Day23.4%21.1%6.3%
1 Year74.9%74.9%34.7%33.5%32.2%29.4%
3 Year183.1%183.1%37.5%33.9%51.3%41.7%
5 Yearn/a91.4%83.5%119.6%95.2%

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?

47.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRTA ($23.44) is trading below our estimate of fair value ($44.81)

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 (23.7x) compared to the US Basic Materials industry average (24.7x).

PE vs Market: FRTA is poor value based on its PE Ratio (23.7x) compared to the US market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: FRTA is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: FRTA is overvalued based on its PB Ratio (8x) 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 5 analysts?

31.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRTA's forecast earnings growth (31.3% per year) is above the savings rate (2%).

Earnings vs Market: FRTA's earnings (31.3% per year) are forecast to grow faster than the US market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FRTA's revenue (4.3% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: FRTA's revenue (4.3% 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 (464.5%) is considered high.

Reducing Debt: FRTA's debt to equity ratio has reduced from 1320.9% to 464.5% over the past 5 years.

Debt Coverage: FRTA's debt is well covered by operating cash flow (27%).

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)

1.67yrs

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 ($USD7.81M) is above average for companies of similar size in the US market ($USD3.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Karl Watson
CEO & Director1.67yrsUS$7.81m1.58%
$ 24.6m
Charles Brown
Executive VP & CFO3.5yrsUS$1.97m0.25%
$ 3.9m
Lori Browne
Executive VP6yrsUS$1.27m0.094%
$ 1.5m
Vikrant Bhatia
President of Water Pipe & Productsno dataUS$1.23m0.13%
$ 2.1m
David Lawrence
Vice President of Treasury & Investor Relationsno datano datano data
Truman Greene
Senior Vice President of Human Resources2.17yrsno datano data
Ed Sexe
Senior Vice President of Stormwater Management Systems5.17yrsno datano data
Charlie Ward
Senior Vice President and General Manager of Bricks10.42yrsUS$973.99kno data
Matthew Wayman
Senior VP and GM of Drainage Pipe & Products -South (KYno datano datano data
Greg Kent
Executive Vice President of Business Development - Stormwater Management Systemsno datano datano data
Howard Smith
Senior Vice President of Marketing & Sales - U.S. Pipeno datano datano data
Shiming Chen
VP & Corporate Controllerno datano datano data

4.3yrs

Average Tenure

50yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Karl Watson
CEO & Director1.67yrsUS$7.81m1.58%
$ 24.6m
Jacques Sarrazin
Independent Director4.42yrsUS$182.50k0.025%
$ 382.5k
Chad Lewis
Non-Independent Director2.92yrsno datano data
Clinton McDonnough
Independent Director4.42yrsUS$202.50k0.090%
$ 1.4m
John McPherson
Independent Non-Executive Vice Chairman & Lead Director1.75yrsUS$499.37k0.092%
$ 1.4m
Richard Cammerer
Non-Independent Director2.92yrsno datano data
Chris Meyer
Chairman3.67yrsno data0.094%
$ 1.5m
Maureen Harrell
Non-Independent Director1.08yrsno datano data
Rafael Colorado
Non-Independent Director2.5yrsno datano data

2.9yrs

Average Tenure

49yo

Average Age

Experienced Board: FRTA's board of directors are not considered experienced ( 2.9 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 been diluted in the past year, with total shares outstanding growing by 2.2%.


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$1.551b
  • Shares outstanding: 66.26m
  • Website: https://www.forterrabp.com

Number of Employees


Location

  • Forterra, Inc.
  • 511 East John Carpenter Freeway
  • 6th Floor
  • Irving
  • Texas
  • 75062
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRTANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2016
05GDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2016

Biography

Forterra, Inc. manufactures and sells pipe and precast products in the United States, Canada, and Mexico. It operates through Drainage Pipe & Products; and Water Pipe & Products segments. The company offer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 23:02
End of Day Share Price2021/03/03 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.