Forterra (FORT) AI Stock Analysis

• Market Cap: £386.27M
• Dividend Yield: 2.13%
• Average Volume (3M): 584.64K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.49
• Revenue Growth: 15.99%
• EPS Growth: 96.05%
• Country: UK
• Employees: 1,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.06
• Shares Outstanding: 212,803,390
• 10 Day Avg. Volume: 901,442
• 30 Day Avg. Volume: 584,640
• PEG Ratio: 0.57
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 20.55
• 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: £223.00
• Price Target Upside: 21.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 200.00p ▲(9.05% Upside)

Forterra's overall stock score is driven by positive corporate events and a stable technical outlook. However, financial performance challenges and a high valuation limit the score. The company's strategic initiatives and internal confidence provide a supportive backdrop, but careful management of profitability and leverage is necessary for future growth.

Positive Factors

Revenue Growth

Forterra's strong revenue growth indicates robust demand for its products, supporting long-term expansion and market presence.

Cash Generation

Enhanced operating cash flow suggests better cash management and operational efficiency, crucial for funding growth and reducing debt.

Equity Stability

A stable equity base reflects strong shareholder value and financial health, providing a buffer against economic fluctuations.

Negative Factors

Profitability Pressures

Declining margins indicate challenges in maintaining profitability, which could affect long-term earnings and investment capacity.

Increased Leverage

Higher leverage increases financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.

Volatile Revenue Trend

Volatility in revenue can lead to uncertainty in financial planning and may hinder consistent growth and strategic investments.

Forterra Business Overview & Revenue Model

Company Description

Forterra plc manufactures and sells masonry products in the United Kingdom. It operates through three segments: Bricks, Blocks, and Bespoke Products. The company offers bricks; aircrete and aggregate blocks; and bespoke products comprising precast concrete flooring, concrete block paving, and chimney and roofing components, as well as other building products under the London Brick, Butterley Brick, Ecostock, Cradley, Thermalite, Conbloc, Bison Precast, Jetfloor, Red Bank, and Formpave brand names. It serves builders' merchants, residential homebuilders, specialized brick merchants, contractors, and subcontractors. The company was incorporated in 2016 and is headquartered in Northampton, the United Kingdom.

How the Company Makes Money

Forterra generates revenue primarily through the sale of its concrete and masonry products. The company's key revenue streams include the manufacturing and distribution of precast concrete products, concrete pipes, and other related materials used in construction projects. Revenue is bolstered by long-term contracts with construction companies, municipalities, and infrastructure projects, which provide a steady demand for their products. Additionally, Forterra may benefit from strategic partnerships with construction firms and participation in public works projects, which can lead to increased sales volume. The company's focus on sustainable practices also positions it favorably in a market increasingly concerned with environmentally friendly building solutions.

Forterra Financial Statement Overview

Summary

Forterra exhibits a mixed financial performance with strengths in equity stability and cash generation improvements. However, profitability pressures and increased leverage represent potential challenges. The company needs to focus on sustaining revenue growth and managing debt levels to enhance overall financial health.

Income Statement

Forterra's income statement reveals a volatile revenue trend with a notable decline from 2022 to 2024 after a peak in 2022. The gross profit margin has remained relatively stable, but the net profit margin and EBIT margin show a downward trend, indicating pressure on profitability. Despite this, the company managed to achieve a moderate net income growth in 2024 compared to 2023, reflecting some resilience.

Balance Sheet

The balance sheet shows a healthy equity base with a consistent increase in stockholders' equity over the years, suggesting strong shareholder value. However, the debt-to-equity ratio has risen, indicating increased leverage which may pose future risks. The equity ratio remains robust, highlighting a stable asset base supported by equity.

Cash Flow

Forterra's cash flow statements demonstrate improvement in operating cash flow in 2024, recovering from a negative flow in 2023. Nevertheless, free cash flow has been inconsistent, showing negative growth in previous years. The operating cash flow to net income ratio indicates effective cash generation relative to earnings, although free cash flow to net income is less stable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	377.30M	344.30M	346.40M	455.50M	370.40M	291.90M
Gross Profit	108.40M	103.00M	100.70M	160.70M	128.40M	64.70M
EBITDA	52.80M	54.70M	58.30M	91.40M	76.50M	15.10M
Net Income	15.70M	17.50M	12.80M	58.80M	45.50M	-5.60M
Balance Sheet
Total Assets	445.70M	442.40M	444.70M	397.60M	350.00M	307.90M
Cash, Cash Equivalents and Short-Term Investments	15.00M	15.20M	16.00M	34.30M	41.50M	31.50M
Total Debt	102.90M	121.00M	133.40M	58.00M	17.10M	24.90M
Total Liabilities	216.50M	217.50M	236.90M	177.10M	115.20M	103.80M
Stockholders Equity	229.20M	224.90M	207.80M	220.50M	234.80M	204.10M
Cash Flow
Free Cash Flow	44.40M	16.60M	-53.00M	31.50M	33.30M	15.40M
Operating Cash Flow	67.70M	42.20M	-20.00M	75.60M	68.20M	40.30M
Investing Cash Flow	-23.40M	-25.60M	-33.80M	-41.20M	-20.00M	-24.90M
Financing Cash Flow	-40.10M	-17.40M	35.50M	-41.60M	-38.20M	-10.50M

Forterra Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 183.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FORT, the sentiment is Positive. The current price of 183.4 is above the 20-day moving average (MA) of 181.19, above the 50-day MA of 179.93, and below the 200-day MA of 183.43, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 60.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FORT.

Forterra Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BREE	75 Outperform	£1.14B	12.62	7.90%	4.47%	7.83%	-7.40%
SRC	74 Outperform	£1.42B	31.82	6.07%	―	32.27%	―
MBH	72 Outperform	£78.49M	15.18	5.71%	5.35%	-0.29%	-33.41%
FORT	69 Neutral	£386.27M	24.62	7.03%	2.13%	15.99%	96.05%
MSLH	68 Neutral	£455.04M	19.21	3.57%	4.18%	1.31%	10.19%
IBST	67 Neutral	£550.97M	45.32	3.10%	2.39%	5.58%	66.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Forterra Corporate Events

Forterra’s Employee Benefit Trust Acquires Additional Shares

Forterra plc announced that its Employee Benefit Trust has completed the purchase of 75,000 ordinary shares at an average price of £1.832, as part of a planned share purchase program. This initiative is aimed at benefiting the company’s employees through various share schemes, with the Trust now holding 2,109,279 shares, representing 0.99% of the company’s voting rights.

Forterra’s Employee Trust Acquires Additional Shares

Forterra plc announced the completion of a share purchase by its Employee Benefit Trust, acquiring 75,000 ordinary shares at an average price of £1.78589. This move is part of a planned program to purchase 150,000 shares monthly, aimed at supporting the company’s employee share schemes. The Trust now holds 2,034,279 shares, representing 0.96% of the company’s voting rights, which underscores Forterra’s commitment to employee benefits and aligns with its strategic objectives to enhance shareholder value.

Forterra Maintains Full-Year Guidance Amid Strong New Build Demand

Forterra plc has maintained its full-year guidance, reporting a year-to-date revenue increase of 16% to £336 million, driven by strong demand in the new build housing sector despite a depressed RMI market. The company is actively managing production capacity with significant progress at its Desford and Wilnecote facilities, enhancing its product offerings and market positioning. Strategic investments in new production capacity are expected to position Forterra well for future market recovery, despite current economic uncertainties.

Forterra’s Employee Benefit Trust Acquires 75,000 Shares

Forterra plc has announced the completion of a share purchase by its Employee Benefit Trust, acquiring 75,000 ordinary shares at an average price of £1.828133. This purchase is part of a planned program to buy 150,000 shares monthly, aimed at supporting the company’s employee share schemes, and currently, the Trust holds 1,959,279 shares, representing 0.92% of the company’s voting rights.

Forterra Chair Increases Stake with Significant Share Purchase

Forterra plc announced that its Chair, Nigel Lingwood, has purchased 50,000 Ordinary Shares at a price of £1.798 per share, totaling £89,900. This transaction reflects Lingwood’s increased stake in the company, potentially signaling confidence in Forterra’s future prospects and stability, which could positively influence stakeholder sentiment.

Forterra’s Employee Benefit Trust Acquires Additional Shares

Forterra plc announced that its Employee Benefit Trust has completed a purchase of 75,000 ordinary shares at an average price of £1.80231. This acquisition is part of a planned program to buy 150,000 shares monthly, aimed at supporting the company’s employee share schemes. The Trust now holds 1,884,279 shares, representing 0.89% of the company’s voting rights, which underscores Forterra’s commitment to employee investment and could potentially enhance employee engagement and retention.

Forterra Initiates Monthly Share Purchase Program for Employee Benefit Trust

Forterra plc has announced a new initiative involving the purchase of approximately 150,000 ordinary shares each month by the Forterra Employee Benefit Trust, managed by Apex Financial Services. This program, set to continue until the end of 2026, aims to support the company’s employee share schemes, enhancing employee engagement and aligning their interests with the company’s performance. The initiative reflects Forterra’s commitment to investing in its workforce and could potentially strengthen its market position by fostering a motivated and invested employee base.

Forterra plc Launches 2025 Employee Sharesave Scheme

Forterra plc has announced the grant of options under its 2025 Employee Sharesave Scheme, allowing employees to save up to £500 monthly over three years to purchase shares at an exercise price of £1.51 each. This initiative aims to enhance employee engagement and investment in the company, potentially strengthening its market position by aligning employee interests with corporate growth.