NYSE:FOE

Stock Analysis Report

Executive Summary

Ferro Corporation produces specialty materials in the United States and internationally.

Snowflake

Fundamentals

Moderate 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


Market Performance


7 Day Return

0.09%

FOE

0.08%

US Chemicals

1.0%

US Market


1 Year Return

-35.3%

FOE

-5.6%

US Chemicals

8.0%

US Market

Return vs Industry: FOE underperformed the US Chemicals industry which returned -5.6% over the past year.

Return vs Market: FOE underperformed the US Market which returned 8% over the past year.


Shareholder returns

FOEIndustryMarket
7 Day0.09%0.08%1.0%
30 Day-5.2%-2.2%-0.07%
90 Day-24.2%-4.3%-1.0%
1 Year-35.3%-35.3%8.7%-5.6%10.4%8.0%
3 Year-17.2%-17.2%38.4%12.1%46.2%36.7%
5 Year-11.2%-11.2%44.2%11.8%64.3%46.2%

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?

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FOE ($11.28) is trading below our estimate of fair value ($17.95)

Significantly Below Fair Value: FOE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FOE is good value based on its PE Ratio (18.2x) compared to the Chemicals industry average (19.3x).

PE vs Market: FOE is poor value based on its PE Ratio (18.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: FOE is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: FOE is overvalued based on its PB Ratio (2.5x) compared to the US Chemicals industry average (2x).


Next Steps

  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Ferro forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FOE's forecast earnings growth (17.4% per year) is above the savings rate (2.7%).

Earnings vs Market: FOE's earnings (17.4% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: FOE's earnings are forecast to grow, but not significantly.

Revenue vs Market: FOE's revenue (1.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FOE's revenue (1.4% 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 (25.2%)


Next Steps

Past Performance

How has Ferro performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FOE's earnings have grown by 6.8% 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 (-23.3%) over the past year, making it difficult to compare to the Chemicals industry average (-2.9%).


Return on Equity

High ROE: FOE's Return on Equity (13.6%) is considered low.


Return on Assets

ROA vs Industry: FOE's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: FOE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ferro's financial position?


Financial Position Analysis

Short Term Liabilities: FOE's short term assets ($875.7M) exceeds its short term liabilities ($339.3M)

Long Term Liabilities: FOE's short term assets (875.7M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: FOE's debt to equity ratio (228.4%) is considered high

Reducing Debt: FOE's debt to equity ratio has increased from 117% to 228.4% over the past 5 years.

Debt Coverage: FOE's debt is not well covered by operating cash flow (16.1%).

Interest Coverage: FOE's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: FOE has a high level of physical assets or inventory.

Debt Coverage by Assets: FOE's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

5.0yrs

Average management tenure


CEO

Peter Thomas (63yo)

6.5yrs

Tenure

US$4,853,673

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 ($USD4.85M) is above average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: FOE's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

59.5yo

Average Age

Experienced Board: FOE's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$38,32521 May 19
Allen Spizzo
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$15.33
BuyUS$108,28015 May 19
Andrew Ross
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,000
Max PriceUS$15.47
BuyUS$38,77515 May 19
David Lorber
EntityIndividual
Role
Lead Director
Lead Director
Shares2,500
Max PriceUS$15.51
BuyUS$270,64010 May 19
Peter Thomas
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares17,000
Max PriceUS$15.92
BuyUS$39,75010 May 19
Allen Spizzo
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$15.90
SellUS$143,06719 Nov 18
James Barna
EntityIndividual
Shares7,500
Max PriceUS$19.08

Ownership Breakdown


Management Team

  • Mark Duesenberg (57yo)

    VP, General Counsel & Secretary

    • Tenure: 11.1yrs
    • Compensation: US$1.26m
  • Peter Thomas (63yo)

    Chairman

    • Tenure: 6.5yrs
    • Compensation: US$4.85m
  • Callahan Abood (61yo)

    Director of Corporate Communications

    • Tenure: 13.4yrs
  • Judy DeForest

    Chief Tax Officer

    • Tenure: 11.9yrs
  • Ben Schlater (43yo)

    Group VP & CFO

    • Tenure: 3.1yrs
    • Compensation: US$1.28m
  • Pepe Tortajada

    Vice President of Human Resources

    • Tenure: 3.6yrs
  • Matthias Bell

    Group Vice President of Global Operations

    • Tenure: 0.8yrs
  • Kevin Grant

    Head of Investor Relations

    • Tenure: 0yrs
  • Andrew Henke (38yo)

    Interim Principal Accounting Officer

    • Tenure: 0.08yrs

Board Members

  • Allen Spizzo (61yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$182.69k
  • Ron Vargo (64yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$189.45k
  • Marran J. Ogilvie (51yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$169.45k
  • David Lorber (41yo)

    Lead Director

    • Tenure: 1.8yrs
    • Compensation: US$207.95k
  • Peter Thomas (63yo)

    Chairman

    • Tenure: 6.5yrs
    • Compensation: US$4.85m
  • Andy Ross (58yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$169.45k

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$924.200m
  • Shares outstanding: 81.93m
  • 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 specialty materials in the United States and internationally. It operates through three segments: Performance Coatings, Performance Colors and Glass, and Color Solutions. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:36
End of Day Share Price2019/10/21 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.