NYSE:FOE

Stock Analysis Report

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Executive Summary

Ferro Corporation produces and markets specialty materials in the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FOE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FOE's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

9.2%

FOE

1.7%

US Chemicals

-0.4%

US Market


1 Year Return

64.1%

FOE

38.9%

US Chemicals

36.2%

US Market

Return vs Industry: FOE exceeded the US Chemicals industry which returned 38.9% over the past year.

Return vs Market: FOE exceeded the US Market which returned 36.2% over the past year.


Shareholder returns

FOEIndustryMarket
7 Day9.2%1.7%-0.4%
30 Day23.5%0.7%-2.9%
90 Day17.7%5.8%5.0%
1 Year64.1%64.1%42.0%38.9%39.1%36.2%
3 Year-29.7%-29.7%27.3%7.6%48.4%39.0%
5 Year63.6%63.6%92.2%53.6%116.5%92.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FOE ($17.33) is trading below our estimate of fair value ($23.85)

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


Price To Earnings Ratio

PE vs Industry: FOE is poor value based on its PE Ratio (49.5x) compared to the US Chemicals industry average (29x).

PE vs Market: FOE is poor value based on its PE Ratio (49.5x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: FOE is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: FOE is overvalued based on its PB Ratio (3.3x) compared to the US Chemicals industry average (2.6x).


Next Steps

Future Growth

How is Ferro forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

43.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FOE's forecast earnings growth (43.9% per year) is above the savings rate (2%).

Earnings vs Market: FOE's earnings (43.9% per year) are forecast to grow faster than the US market (19.2% per year).

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

Revenue vs Market: FOE's revenue (5.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: FOE's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FOE's Return on Equity is forecast to be high in 3 years time (37.5%)


Next Steps

Past Performance

How has Ferro performed over the past 5 years?

-28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FOE has a large one-off loss of $17.4M impacting its December 31 2020 financial results.

Growing Profit Margin: FOE's current net profit margins (3%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: FOE's earnings have declined by 28.7% per year over the past 5 years.

Accelerating Growth: FOE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FOE had negative earnings growth (-14.1%) over the past year, making it difficult to compare to the Chemicals industry average (-1.4%).


Return on Equity

High ROE: FOE's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Ferro's financial position?


Financial Position Analysis

Short Term Liabilities: FOE's short term assets ($969.8M) exceed its short term liabilities ($403.6M).

Long Term Liabilities: FOE's short term assets ($969.8M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: FOE's debt to equity ratio (186.5%) is considered high.

Reducing Debt: FOE's debt to equity ratio has increased from 146.4% to 186.5% over the past 5 years.

Debt Coverage: FOE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: FOE's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FOE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FOE'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 FOE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FOE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FOE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FOE'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?

7.9yrs

Average management tenure


CEO

Peter Thomas (64 yo)

7.92yrs

Tenure

US$4,981,850

Compensation

Mr. Peter T. Thomas has been the Chief Executive Officer and President of Ferro Corporation since April 24, 2013. Mr. Thomas served as Interim Chief Executive Officer and Interim President at Ferro Corpora...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD4.98M) is above average for companies of similar size in the US market ($USD3.62M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Thomas
Chairman7.92yrsUS$4.98m1.06%
$ 15.1m
Benjamin Schlater
Group VP & CFO4.5yrsUS$1.34m0.047%
$ 671.6k
Mark Duesenberg
VP, General Counsel & Secretary12.5yrsUS$1.23m0.28%
$ 4.0m
Matthias Bell
Group Vice President of Global Operations2.17yrsno datano data
Andrew Henke
Controller & Chief Accounting Officer1.5yrsno data0.0085%
$ 121.1k
Kevin Grant
Director of Investor Relations & Corporate Relationsno datano datano data
Mary Abood
Director of Corporate Communications14.83yrsno datano data
Judy DeForest
Chief Tax Officer13.33yrsno datano data

7.9yrs

Average Tenure

58yo

Average Age

Experienced Management: FOE's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Thomas
Chairman7.92yrsUS$4.98m1.06%
$ 15.1m
Allen Spizzo
Independent Director4.42yrsUS$181.23k0.0061%
$ 86.7k
Ronald Vargo
Independent Director11.25yrsUS$181.23k0.044%
$ 631.6k
Marran J. Ogilvie
Independent Director3.42yrsUS$161.23k0.0024%
$ 34.7k
David Lorber
Independent Lead Director3.17yrsUS$206.23k0.027%
$ 381.2k
Andrew Ross
Independent Director4.42yrsUS$161.23k0.011%
$ 155.9k

4.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: FOE's board of directors are considered experienced (4.4 years average tenure).


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

Ferro Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ferro Corporation
  • Ticker: FOE
  • Exchange: NYSE
  • Founded: 1919
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$1.428b
  • Shares outstanding: 82.38m
  • Website: https://www.ferro.com

Number of Employees


Location

  • Ferro Corporation
  • 6060 Parkland Boulevard
  • Suite 250
  • Mayfield Heights
  • Ohio
  • 44124
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FOENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
FR9DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Ferro Corporation produces and markets specialty materials in the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It operates through two segments, Functional Coatings ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 23:42
End of Day Share Price2021/03/05 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.