Forbo Holding AG (FORN) AI Stock Analysis

• Market Cap: $1.28B
• Dividend Yield: 2.73%
• Average Volume (3M): 2.48K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.18
• Revenue Growth: -4.53%
• EPS Growth: -6.83%
• Country: CH
• Employees: 5,059
• Sector: Industrials
• Sector Strength: 93
• Industry: Construction
• EPS (TTM): 33.11
• Shares Outstanding: 1,485,000
• 10 Day Avg. Volume: 2,129
• 30 Day Avg. Volume: 2,478
• PEG Ratio: -0.70
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.45
• 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: $921.04
• Price Target Upside: 0.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ―

Forbo Holding AG scores well due to its strong balance sheet and attractive valuation. The zero debt and high equity ratio contribute positively to its financial stability. However, declining revenues and moderate profitability margins present challenges that need addressing. The stock shows positive technical trends, indicating potential for upward momentum. The attractive P/E ratio and dividend yield further support a favorable valuation.

Forbo Holding AG Business Overview & Revenue Model

Company Description

Forbo Holding AG (FORN) is a leading global manufacturer specializing in flooring systems, bonding systems, and movement systems. The company's flooring segment offers a wide range of linoleum, vinyl, and textile floor coverings. Its bonding systems segment provides a variety of adhesives for industrial, commercial, and residential applications. Additionally, the movement systems segment focuses on power transmission and conveyor belt solutions for industries such as logistics, food, and textiles. Headquartered in Switzerland, Forbo serves customers worldwide with innovative and sustainable solutions.

How the Company Makes Money

Forbo Holding AG generates revenue primarily through the sale of its flooring systems, bonding systems, and movement systems. The flooring systems segment is a significant contributor, with products sold to commercial, institutional, and residential markets. The bonding systems provide revenue through adhesives used in various industries, including automotive and construction. The movement systems segment adds to the revenue by supplying conveyor and power transmission belts to different sectors. Forbo's diverse product offerings and its focus on sustainable and innovative solutions help maintain strong market positions, supported by strategic partnerships and a global distribution network.

Forbo Holding AG Financial Statement Overview

Summary

Forbo Holding AG presents a mixed financial picture. The company shows strong balance sheet stability with zero debt and a high equity ratio. However, its income statement reflects declining revenues and moderate profitability margins. The cash flow position is strong, with increasing free cash flow, but there is a slight decline in operating cash flow, which needs monitoring. Overall, the company maintains a solid financial foundation with room for improvement in revenue growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	1.18B	1.29B	1.25B	1.12B
Gross Profit	384.90M	401.70M	440.80M	451.00M	410.20M
EBITDA	169.10M	185.70M	194.30M	223.70M	192.30M
Net Income	95.10M	102.30M	101.40M	141.20M	106.20M
Balance Sheet
Total Assets	975.80M	901.40M	972.50M	994.10M	1.12B
Cash, Cash Equivalents and Short-Term Investments	109.10M	69.10M	46.70M	93.30M	255.90M
Total Debt	0.00	0.00	65.60M	82.40M	45.20M
Total Liabilities	349.80M	347.70M	422.40M	472.30M	438.90M
Stockholders Equity	626.00M	553.70M	550.10M	521.80M	683.50M
Cash Flow
Free Cash Flow	135.60M	115.90M	50.50M	128.10M	132.40M
Operating Cash Flow	135.60M	160.00M	81.40M	166.90M	172.10M
Investing Cash Flow	-43.80M	-44.10M	-30.90M	-38.80M	-39.60M
Financing Cash Flow	-51.10M	-87.90M	-93.90M	-290.20M	-89.60M

Forbo Holding AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 915.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 915 is above the 20-day moving average (MA) of 872.90, above the 50-day MA of 848.78, and above the 200-day MA of 809.30, indicating a bullish trend. The MACD of 18.95 indicates Negative momentum. The RSI at 63.99 is Neutral, neither overbought nor oversold. The STOCH value of 75.76 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
FORN	73 Outperform	$1.28B	13.47	16.01%	2.73%	-4.53%	-6.83%
AUTN	72 Outperform	$903.51M	17.34	10.83%	1.80%	1.58%	-9.05%
KARN	70 Outperform	CHF2.37B	30.93		<0.01%	10.38%	18.74%
Sector *	67 Neutral	£2.83B	10.49	4.69%	212.35%	2.73%	-20.56%
KOMN	61 Neutral	CHF565.04M	99.21		2.84%	-16.31%	-107.34%
VETN	60 Neutral	CHF623.46M	91.03		3.18%	-6.31%	-78.36%
ARBN	54 Neutral	CHF397.46M	48.24		74.91%	―	―

Forbo Holding AG Corporate Events

Forbo Holding AG CEO Jens Fankhänel Steps Down Permanently

Forbo Holding AG announced that Jens Fankhänel, who had temporarily stepped down as CEO for health reasons, will not be returning to his position and will leave the company on April 30, 2025. Andreas Jaeger, the current interim CEO, will continue in his role while the company searches for a permanent successor, working closely with the Chairman of the Board of Directors.

Forbo Holding AG CEO Jens Fankhänel Steps Down

Forbo Holding AG announced that its CEO, Jens Fankhänel, will not return to his position due to health reasons, and will officially leave the company at the end of April 2025. Andreas Jaeger, the current interim CEO, will continue in this role while the company searches for a permanent successor, working closely with the Chairman of the Board, Bernhard Merki.

Forbo Shareholders Approve Board Proposals and Leadership Changes

At its 97th Ordinary General Meeting, Forbo Holding AG’s shareholders approved all proposals by the Board of Directors, including the election of Bernhard Merki as the new Chairman and a dividend of CHF 25 per share. The meeting saw the re-election of existing board members and the approval of various remuneration packages, reflecting strong shareholder confidence in the company’s leadership and strategic direction. This transition in leadership, with the departure of long-serving Chairman This E. Schneider, marks a significant moment for Forbo as it continues to focus on sustainable growth and innovation in its industry.

Forbo Holding AG Announces New Chairman and Dividend at General Meeting

At the 97th ordinary General Meeting of Forbo Holding AG, shareholders approved all board proposals, including the election of Bernhard Merki as the new Chairman and a dividend payment of CHF 25 per share. The meeting also saw the approval of compensation packages for the Board and Executive Board, the re-election of board members, and the extension of KPMG AG’s auditor mandate. The departure of long-serving board member This E. Schneider was acknowledged, highlighting his significant contributions to the company’s strategic direction.