Forterra plc
Forterra plc Fundamental Analysis
Forterra plc (FTTRF) shows weak financial fundamentals with a PE ratio of 22.56, profit margin of 4.40%, and ROE of 7.33%. The company generates $0.4B in annual revenue with weak year-over-year growth of -0.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FTTRF's fundamental strength across five key dimensions:
Efficiency Score
WeakFTTRF struggles to generate sufficient returns from assets.
Valuation Score
ModerateFTTRF shows balanced valuation metrics.
Growth Score
ModerateFTTRF shows steady but slowing expansion.
Financial Health Score
ExcellentFTTRF maintains a strong and stable balance sheet.
Profitability Score
WeakFTTRF struggles to sustain strong margins.
Key Financial Metrics
Is FTTRF Expensive or Cheap?
P/E Ratio
FTTRF trades at 22.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FTTRF's PEG of 3.93 indicates potential overvaluation.
Price to Book
The market values Forterra plc at 1.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.74 times EBITDA. This is generally considered low.
How Well Does FTTRF Make Money?
Net Profit Margin
For every $100 in sales, Forterra plc keeps $4.40 as profit after all expenses.
Operating Margin
Core operations generate 8.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.33 in profit for every $100 of shareholder equity.
ROA
Forterra plc generates $4.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Forterra plc produces operating cash flow of $58.31M, showing steady but balanced cash generation.
Free Cash Flow
Forterra plc generates strong free cash flow of $43.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.21 in free cash annually.
FCF Yield
FTTRF converts 11.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How FTTRF Stacks Against Its Sector Peers
| Metric | FTTRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.56 | 24.98 | Neutral |
| ROE | 7.33% | 907.00% | Weak |
| Net Margin | 4.40% | -105736.00% (disorted) | Weak |
| Debt/Equity | 0.35 | 0.56 | Strong (Low Leverage) |
| Current Ratio | 1.46 | 5.08 | Neutral |
| ROA | 4.08% | -10264.00% (disorted) | Weak |
FTTRF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Forterra plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-15.42%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-65.09%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-25.11%
Industry Style: Cyclical, Commodity, Value
Declining