Forbo Holding AG (FORN) AI Stock Analysis

• Market Cap: CHF1.29B
• Dividend Yield: 2.9%
• Average Volume (3M): 3.17K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.07
• Revenue Growth: -2.80%
• EPS Growth: -14.35%
• Country: CH
• Employees: 5,059
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 23.68
• Shares Outstanding: 1,485,000
• 10 Day Avg. Volume: 2,886
• 30 Day Avg. Volume: 3,175
• PEG Ratio: -1.58
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 7.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF820.00
• Price Target Upside: 18.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: CHF1,047.00 ▲(51.08% Upside)

The score is primarily driven by strong financial stability (zero debt, high equity ratio) and improving free cash flow, partially offset by declining revenue trends. Technicals are bullish due to the price holding well above key moving averages, but overbought momentum indicators temper the rating. Valuation is supportive with a moderate P/E and a 2.61% dividend yield.

Positive Factors

Balance Sheet Strength

Zero financial leverage and a high equity ratio provide durable financial flexibility. This strengthens resilience across cycles, supports capital expenditure, dividend sustainability, and selective M&A without constraining liquidity or forcing asset sales during downturns.

Improving Free Cash Flow

A near 17% rise in free cash flow and strong cash conversion (FCF/Net Income 1.43) indicate improving ability to fund operations and investments internally. Durable cash generation supports reinvestment, product development, and consistent shareholder returns.

Business Diversification

Two distinct segments—commercial/residential flooring and industrial conveyor/power belts—provide structural diversification. Replacement demand, service work, and specification-driven sales create recurring revenue streams and reduce dependence on a single end market.

Negative Factors

Declining Revenue Trend

Persistent year-over-year top-line decline erodes scale advantages and raises questions about market share, pricing effectiveness, or demand health. Continued revenue contraction would pressure margin sustainability and limit resources available for strategic investments.

Moderate Profitability

Mid-single-digit net margins and mid-teens EBITDA constrain the firm's ability to absorb raw material or labor cost shocks. Moderate profitability limits internal funding for growth, reduces margin of safety, and heightens sensitivity to input-cost inflation over time.

Cyclicality of End Markets

Heavy exposure to construction and renovation cycles creates structural revenue volatility. Prolonged downturns in building activity can materially reduce orders for flooring and installation systems, complicating capacity planning and extending recovery timelines for revenue and margins.

Forbo Holding AG Business Overview & Revenue Model

Company Description

Forbo Holding AG produces and sells floor coverings, building and construction adhesives, and power transmission and conveyor belt solutions in Switzerland and internationally. The company operates through two divisions, Flooring Systems and Movement Systems. The Flooring Systems division develops, produces, and sells linoleum, vinyl floorings, entrance flooring systems, carpet tiles, needle felt floor coverings, washable textile floorings, and building and construction adhesives, as well as various accessory products for laying, processing, cleaning, and care of flooring. This division also provides ready-made adhesives for floor covering installations, parquet flooring, and ceramic tiles, as well as leveling compounds for the construction industry and liquid floors under the trade name of Eurocol. Its products are used in public buildings, department stores, hospitals and other healthcare facilities, schools, libraries, commercial and office spaces, leisure centers, shops, hotels, restaurants, and cafeterias; as well as for applications in the residential market. The Movement Systems division offers conveyor and processing belts, plastic modular belts, power transmission belts, and timing and flat belts under the Siegling brand name. Its products are used in various applications in industry, trade, and the service sector, including conveyor and processing belts in the food industry; treadmill belts in fitness studios; and flat belts in mail distribution centers. The company was founded in 1928 and is headquartered in Baar, Switzerland.

How the Company Makes Money

Forbo Holding AG generates revenue through the sale of its core products in the Flooring Systems and Bonding Systems segments. Key revenue streams include the production and distribution of flooring products such as vinyl, linoleum, carpets, and rubber flooring, which cater to diverse markets including commercial, residential, and industrial sectors. Additionally, the Bonding Systems segment contributes to revenue through the sale of adhesives used in construction, automotive, and other manufacturing processes. The company benefits from significant partnerships with distributors and retailers, ensuring a broad market reach. Moreover, Forbo's commitment to sustainability and eco-friendly product offerings attracts environmentally-conscious consumers, further enhancing its revenue potential.

Forbo Holding AG Financial Statement Overview

Summary

Overall solid fundamentals supported by a strong balance sheet (zero debt, 64.15% equity ratio, 15.19% ROE) and improving free cash flow (+16.98%). The key offset is declining revenue (-4.52% YoY) with only moderate profitability (8.48% net margin), plus a noted dip in operating cash flow that warrants monitoring.

Income Statement

Forbo Holding AG has experienced a declining revenue trend over the years, with a Revenue Growth Rate of -4.52% from 2023 to 2024. The Gross Profit Margin for 2024 is 34.30%, and the Net Profit Margin is 8.48%, indicating moderate profitability. The EBIT Margin stands at 10.75%, and the EBITDA Margin is 15.07%, reflecting stable operational efficiency despite the revenue decline.

Balance Sheet

The company has a robust Balance Sheet with zero debt as of 2024, leading to a Debt-to-Equity Ratio of 0, showcasing excellent leverage management. The Equity Ratio is 64.15%, indicating a strong equity position relative to total assets. Return on Equity (ROE) is 15.19%, demonstrating effective utilization of shareholder funds.

Cash Flow

Free Cash Flow has increased by 16.98% from 2023 to 2024, highlighting improved cash generation. The Operating Cash Flow to Net Income Ratio is 1.43, and the Free Cash Flow to Net Income Ratio is 1.43, indicating efficient conversion of income into cash flows. However, the decline in operating cash flow from 2023 might be a concern for future cash sufficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.10B	1.12B	1.18B	1.29B	1.25B	1.12B
Gross Profit	371.50M	384.90M	401.70M	440.80M	451.00M	410.20M
EBITDA	147.50M	169.10M	185.70M	194.30M	238.70M	192.30M
Net Income	80.10M	95.10M	102.30M	101.40M	141.20M	106.20M
Balance Sheet
Total Assets	957.50M	975.80M	901.40M	972.50M	994.10M	1.12B
Cash, Cash Equivalents and Short-Term Investments	41.70M	109.10M	69.10M	46.70M	93.30M	255.90M
Total Debt	58.50M	47.20M	40.00M	65.60M	82.40M	45.20M
Total Liabilities	349.90M	349.80M	347.70M	422.40M	472.30M	438.90M
Stockholders Equity	607.60M	626.00M	553.70M	550.10M	521.80M	683.50M
Cash Flow
Free Cash Flow	53.90M	135.60M	114.70M	50.50M	128.10M	132.40M
Operating Cash Flow	101.70M	135.60M	160.00M	81.40M	166.90M	172.10M
Investing Cash Flow	-47.50M	-43.80M	-44.10M	-30.90M	-38.80M	-39.60M
Financing Cash Flow	-49.30M	-51.10M	-87.90M	-93.90M	-290.20M	-89.60M

Forbo Holding AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 693.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:FORN, the sentiment is Positive. The current price of 693 is below the 20-day moving average (MA) of 903.50, below the 50-day MA of 827.42, and below the 200-day MA of 802.11, indicating a bullish trend. The MACD of 29.33 indicates Positive momentum. The RSI at 58.65 is Neutral, neither overbought nor oversold. The STOCH value of 59.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:FORN.

Forbo Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMPN	72 Outperform	CHF1.37B	13.70	15.36%	1.19%	1.87%	-26.72%
ELMN	72 Outperform	CHF292.47M	34.65	―	0.16%	-0.64%	-5.79%
FORN	69 Neutral	CHF1.29B	16.08	12.91%	2.90%	-2.80%	-14.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BYS	55 Neutral	CHF557.35M	-9.33	-9.18%	1.50%	-21.53%	-4693.32%
STGN	54 Neutral	CHF165.26M	-44.01	―	3.45%	-1.46%	-115.85%
ARBN	50 Neutral	CHF349.07M	-3.40	―	82.95%	―	―

Forbo Holding AG Corporate Events

Forbo Names Interroll Executive Heinz Hössli as New Group CFO

Forbo Holding AG has appointed 56-year-old Swiss executive Heinz Hössli as Chief Financial Officer and member of the Executive Board, effective July 1, 2026, succeeding interim CFO Peter Germann, who will retire after the handover. Hössli, currently CFO of the listed Interroll Group and previously in senior finance roles at Bühler Group and Ernst & Young, brings extensive international industrial, automation and corporate governance experience, which the board expects will strengthen Forbo’s leadership, support its transformation phase, and help drive growth, innovation and employee development alongside CEO Johannes Huber and the divisional heads.

The most recent analyst rating on (CH:FORN) stock is a Hold with a CHF988.00 price target. To see the full list of analyst forecasts on Forbo Holding AG stock, see the CH:FORN Stock Forecast page.

Forbo Holding AG Names Heinz Hössli as New Group CFO

Forbo Holding AG has appointed 56-year-old Swiss executive Heinz Hössli as Chief Financial Officer and member of the Executive Board, effective July 1, 2026, replacing interim CFO Peter Germann, who will retire after the handover. Hössli brings extensive international financial and industrial experience from his current role as CFO of Interroll Group and his 21-year tenure at Bühler Group, and the board expects his background in industrial technology, conveyor technology, automation, and listed-company governance to strategically complement the CEO and divisional heads as the executive team focuses on driving growth, innovation, and employee development during an ongoing transformation phase.

The most recent analyst rating on (CH:FORN) stock is a Hold with a CHF988.00 price target. To see the full list of analyst forecasts on Forbo Holding AG stock, see the CH:FORN Stock Forecast page.