Forbo Holding AG (FORN) AI Stock Analysis

• Market Cap: CHF1.13B
• Dividend Yield: 3.12%
• Average Volume (3M): 2.85K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.16
• 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: 4,510
• 30 Day Avg. Volume: 2,854
• 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): 38.86
• Revenue Forecast (FY): CHF867.22M

• Rating: 63 Neutral
• Price Target: CHF775.00 ▲(11.83% Upside)

Forbo Holding AG's overall stock score is driven by its strong balance sheet and attractive valuation. However, bearish technical indicators and declining revenue trends weigh down the score. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt and a high equity ratio indicates excellent leverage management, providing financial stability and flexibility for future investments.

Cash Generation

Improved cash generation through increased free cash flow highlights the company's ability to efficiently convert income into cash, supporting sustainable operations and potential growth initiatives.

Sustainability Focus

The company's emphasis on sustainability and eco-friendly products aligns with growing consumer demand for green solutions, potentially enhancing market position and long-term revenue growth.

Negative Factors

Declining Revenue

A consistent decline in revenue growth indicates challenges in market expansion or product demand, which could impact long-term profitability and market competitiveness.

Moderate Profitability Margins

Moderate profitability margins suggest limited pricing power or cost control, which may hinder the company's ability to improve earnings and invest in growth opportunities.

Decline in Operating Cash Flow

A decline in operating cash flow could signal potential liquidity issues, affecting the company's capacity to fund operations and invest in strategic initiatives over the long term.

Forbo Holding AG Business Overview & Revenue Model

Company Description

Forbo Holding AG is a Swiss-based multinational company specializing in flooring systems, adhesives, and building and surface materials. The company operates primarily in two segments: Flooring Systems, which includes a wide range of resilient and textile floor coverings, and Bonding Systems, which offers high-quality adhesives for various industries. With a strong emphasis on sustainability and innovation, Forbo provides solutions that enhance both functionality and aesthetics in commercial and residential spaces.

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

Forbo Holding AG shows a strong balance sheet with zero debt and a high equity ratio, indicating excellent leverage management. However, declining revenues and moderate profitability margins on the income statement, along with a slight decline in operating cash flow, suggest areas for improvement.

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: Negative
• RSI: Negative
• STOCH: Negative

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 723.40, below the 50-day MA of 729.74, and below the 200-day MA of 792.24, indicating a bullish trend. The MACD of 15.30 indicates Negative momentum. The RSI at 74.25 is Negative, neither overbought nor oversold. The STOCH value of 94.69 is Negative, 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	$1.11B	11.16	15.36%	1.32%	1.87%	-26.72%
ELMN	72 Outperform	CHF290.18M	34.38	―	0.16%	-0.64%	-5.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FORN	63 Neutral	CHF1.13B	14.09	12.91%	3.12%	-2.80%	-14.35%
STGN	54 Neutral	CHF167.98M	-44.74	―	3.42%	-1.46%	-115.85%
ARBN	50 Neutral	CHF336.97M	-3.28	―	83.27%	―	―
BYS	45 Neutral	CHF594.57M	-9.96	-9.18%	1.56%	-21.53%	-4693.32%

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.