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.


Snowflake Analysis

Proven track record with limited growth.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.4%

FOE

4.5%

US Chemicals

2.8%

US Market


1 Year Return

-17.2%

FOE

-3.4%

US Chemicals

9.3%

US Market

Return vs Industry: FOE underperformed the US Chemicals industry which returned -2% over the past year.

Return vs Market: FOE underperformed the US Market which returned 9.9% over the past year.


Shareholder returns

FOEIndustryMarket
7 Day-4.4%4.5%2.8%
30 Day34.3%12.2%8.9%
90 Day8.3%1.4%-0.5%
1 Year-17.2%-17.2%2.1%-3.4%11.8%9.3%
3 Year-31.5%-31.5%13.7%-7.3%31.4%22.7%
5 Year-23.5%-23.5%27.7%-0.7%58.7%40.9%

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?

23.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FOE ($12.03) is trading above our estimate of fair value ($8.84)

Significantly Below Fair Value: FOE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FOE is poor value based on its PE Ratio (23.8x) compared to the Chemicals industry average (20.7x).

PE vs Market: FOE is poor value based on its PE Ratio (23.8x) compared to the US market (15.7x).


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 (2.8x) compared to the US Chemicals industry average (1.9x).


Next Steps

Future Growth

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

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FOE's forecast earnings growth (22% per year) is above the savings rate (2.2%).

Earnings vs Market: FOE's earnings (22% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: FOE's revenue (2.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: FOE's revenue (2.9% 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 low in 3 years time (14.1%).


Next Steps

Past Performance

How has Ferro performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FOE has high quality earnings.

Growing Profit Margin: FOE's current net profit margins (4.1%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: FOE has become profitable over the past 5 years, growing earnings by -5.3% per year.

Accelerating Growth: FOE's earnings growth over the past year (1%) exceeds its 5-year average (-5.3% per year).

Earnings vs Industry: FOE earnings growth over the past year (1%) exceeded the Chemicals industry -11.3%.


Return on Equity

High ROE: FOE's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Ferro's financial position?


Financial Position Analysis

Short Term Liabilities: FOE's short term assets ($829.9M) exceed its short term liabilities ($335.5M).

Long Term Liabilities: FOE's short term assets ($829.9M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: FOE's debt to equity ratio (229.6%) is considered high.

Reducing Debt: FOE's debt to equity ratio has increased from 100.3% to 229.6% over the past 5 years.

Debt Coverage: FOE's debt is not well covered by operating cash flow (1.7%).

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's 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?

5.7yrs

Average management tenure


CEO

Peter Thomas (63yo)

7.17yrs

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 ($USD4.98M) is above average for companies of similar size in the US market ($USD3.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Thomas
Chairman7.17yrsUS$4.98m0.96% $9.5m
Benjamin Schlater
Group VP & CFO3.75yrsUS$1.34m0.040% $393.8k
Mark Duesenberg
VP, General Counsel & Secretary11.75yrsUS$1.23m0.26% $2.6m
Matthias Bell
Group Vice President of Global Operations1.42yrsno datano data
Andrew Henke
Interim Principal Accounting Officer0.75yrno data0.0052% $51.8k
Kevin Grant
Head of Investor Relationsno datano datano data
Mary Abood
Director of Corporate Communications14.08yrsno datano data
Jose Tortajada
Vice President of Human Resources4.25yrsno datano data
Judy DeForest
Chief Tax Officer12.58yrsno datano data

5.7yrs

Average Tenure

57yo

Average Age

Experienced Management: FOE's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Thomas
Chairman7.17yrsUS$4.98m0.96% $9.5m
Allen Spizzo
Independent Director3.67yrsUS$181.23k0.0061% $60.2k
Ronald Vargo
Independent Director10.5yrsUS$181.23k0.044% $438.5k
Marran J. Ogilvie
Independent Director2.67yrsUS$161.23k0.0024% $24.0k
David Lorber
Lead Director2.42yrsUS$206.23k0.027% $264.7k
Andrew Ross
Independent Director3.67yrsUS$161.23k0.011% $108.2k

3.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: FOE's board of directors are considered experienced (3.7 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.


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$989.381m
  • Shares outstanding: 82.24m
  • 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, Performance Colors and Glass, and Color Solutions. The company offers frits, porcelain and other glass enamels, glazes, stains, decorating colors, pigments, inks, polishing materials, dielectrics, electronic glasses, and other specialty coatings. It also provides slurry-based polishing products for the semiconductor and optoelectronics industry; decorative coatings for glass and high-performance plastics coatings; digital printing solutions for glass; and dielectrics and electronic ink products for component applications. The company’s products are used in appliances, household furnishings, automobiles, industrial products, building and renovation, consumer products, packaging, electronics, and sanitary applications. It markets and sells its products directly, as well as through agents and distributors. The company’s customers include manufacturers of ceramic tiles, appliances, construction materials, automobile parts, automobiles, architectural and container glass, and electronic components and devices. Ferro Corporation was founded in 1919 and is headquartered in Mayfield Heights, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 02:46
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.