Fortrea Holdings Inc. (FTRE) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: -0.54%
• EPS Growth: -259.57%
• Country: US
• Employees: 15,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.12
• Shares Outstanding: 92,400,000
• 10 Day Avg. Volume: 1,641,802
• 30 Day Avg. Volume: 1,383,684
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 7.03
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: -2.14
• 1Y Price Target: $13.00
• Price Target Upside: -27.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.51
• Revenue Forecast (FY): $2.72B

• Rating: 56 Neutral
• Price Target: $14.50 ▼(-19.04% Downside)

Fortrea Holdings Inc. faces significant financial challenges, which heavily impact its overall score. However, strong technical indicators and positive corporate events provide some optimism. The earnings call also highlighted some strategic improvements, but valuation concerns remain due to negative earnings.

Positive Factors

Strategic Collaboration

The partnership with SCTbio aims to streamline development and accelerate timelines, enhancing Fortrea's ability to bring advanced therapies to market faster, which can strengthen its competitive position and improve long-term growth prospects.

Improved Book-to-Bill Ratio

An improved book-to-bill ratio indicates strong demand for Fortrea's services, suggesting potential for sustained revenue growth and a solid pipeline of future projects, which is crucial for long-term business stability.

Strong Cash Position

A strong cash position provides Fortrea with the financial flexibility to invest in growth opportunities, weather economic downturns, and manage debt obligations, supporting long-term operational resilience.

Negative Factors

Cash Flow Challenges

Persistent cash flow inefficiencies can hinder Fortrea's ability to fund operations and investments internally, potentially leading to increased reliance on external financing and impacting long-term financial health.

Profitability Issues

Ongoing profitability challenges, as indicated by negative margins, suggest difficulties in cost management and pricing power, which could affect Fortrea's ability to generate sustainable earnings over time.

Competitive Pricing Pressures

Aggressive pricing strategies from competitors in the FSP market may force Fortrea to lower prices or walk away from deals, potentially impacting revenue and market share in the long term.

Fortrea Holdings Inc. Business Overview & Revenue Model

Company Description

Fortrea Holdings Inc. (FTRE) is a diversified holding company specializing in the development and commercialization of innovative healthcare solutions. The company operates primarily in the biotechnology and pharmaceutical sectors, focusing on the research and development of novel therapeutics and medical devices. Fortrea Holdings aims to address unmet medical needs through its core products, which include a range of treatment options for various chronic and acute conditions.

How the Company Makes Money

Fortrea Holdings generates revenue through multiple streams, including the sale of pharmaceutical products, licensing agreements, and partnerships with other healthcare organizations. The company monetizes its proprietary therapeutics by distributing them through established healthcare channels. Additionally, Fortrea engages in strategic collaborations with research institutions and other biotech firms, allowing it to share development costs and access broader markets. The company may also receive milestone payments and royalties from partners as its products progress through clinical trials and achieve regulatory approvals, further enhancing its revenue potential.

Fortrea Holdings Inc. Financial Statement Overview

Summary

Fortrea Holdings Inc. faces substantial financial challenges, with negative profitability and cash flow inefficiencies. Despite some improvement in leverage, the negative return on equity and declining gross profit margins indicate ongoing operational difficulties.

Income Statement

Fortrea Holdings Inc. has experienced significant revenue volatility, with a recent TTM revenue growth of 96.6%, but this follows a period of declining revenues. The company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins in the TTM period. The gross profit margin has also decreased over time, indicating challenges in maintaining cost efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio in the TTM period, which has improved from previous years. However, the return on equity is negative, reflecting ongoing losses. The equity ratio remains stable, suggesting a reasonable level of financial stability despite profitability challenges.

Cash Flow

Fortrea Holdings Inc. faces significant cash flow challenges, with a negative free cash flow growth rate in the TTM period. The operating cash flow to net income ratio is extremely low, indicating difficulties in converting income into cash. The free cash flow to net income ratio is also negative, highlighting cash flow inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.76B	2.70B	2.84B	2.84B	3.06B
Gross Profit	474.40M	534.20M	590.60M	724.40M	604.40M
EBITDA	-852.80M	-64.30M	137.20M	280.80M	302.90M
Net Income	-1.01B	-328.50M	-25.20M	186.20M	98.00M
Balance Sheet
Total Assets	2.74B	3.58B	4.33B	4.29B	4.37B
Cash, Cash Equivalents and Short-Term Investments	131.30M	118.50M	108.60M	112.00M	94.60M
Total Debt	1.19B	1.20B	1.67B	63.40M	77.20M
Total Liabilities	2.16B	2.22B	2.62B	945.30M	1.11B
Stockholders Equity	580.80M	1.36B	1.71B	3.34B	3.26B
Cash Flow
Free Cash Flow	-13.00M	237.30M	128.10M	28.30M	143.30M
Operating Cash Flow	1.50M	262.80M	168.40M	82.70M	169.80M
Investing Cash Flow	25.40M	251.60M	-31.80M	-54.00M	-26.20M
Financing Cash Flow	-1.70M	-497.80M	-140.80M	-6.30M	-128.50M

Fortrea Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.91
• 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 FTRE, the sentiment is Positive. The current price of 17.91 is above the 20-day moving average (MA) of 15.02, above the 50-day MA of 12.32, and above the 200-day MA of 8.32, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 80.19 is Negative, neither overbought nor oversold. The STOCH value of 88.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTRE.

Fortrea Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FULC	67 Neutral	$843.10M	-10.00	-31.21%	―	-100.00%	-305.92%
CMPX	60 Neutral	$914.21M	-11.23	-37.82%	―	-100.00%	-28.79%
FTRE	56 Neutral	$1.63B	-1.59	-98.13%	―	-0.54%	-259.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NKTR	47 Neutral	$884.45M	-5.60	-180.24%	―	-32.79%	36.87%
AURA	43 Neutral	$382.29M	-3.13	-64.26%	―	―	-11.41%
ERAS	34 Underperform	$1.04B	-7.52	-32.00%	―	―	45.66%

Fortrea Holdings Inc. Corporate Events

Fortrea Holdings Completes Oversubscribed Debt Tender Offer

Fortrea Holdings, Inc. announced the expiration of its debt tender offer on November 18, 2025, to purchase up to $75,744,000 of its outstanding 7.500% Senior Secured Notes due 2030. The offer was oversubscribed, and the company accepted $75,743,000 in aggregate principal amount of the Notes based on a Final Proration Factor, indicating strong investor interest.

Fortrea Holdings Appoints William J. Sharbaugh as Director

On September 19, 2025, Fortrea Holdings Inc. announced the appointment of William J. Sharbaugh as a Class III director, effective September 22, 2025, expanding the board to eight members. Mr. Sharbaugh brings over 30 years of experience in the pharmaceutical industry, having held executive roles at companies like PPD, Inc., and Bristol-Myers Squibb. His appointment is expected to enhance Fortrea’s strategic execution and stakeholder value as the company continues to focus on delivering life-changing treatments globally.