Forterra (FORT) AI Stock Analysis

• Market Cap: £392.16M
• Dividend Yield: 161.12%
• Average Volume (3M): 541.75K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.41
• Revenue Growth: -0.61%
• EPS Growth: 34.19%
• Country: UK
• Employees: 1,500
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): N/A
• Shares Outstanding: 212,803,390
• 10 Day Avg. Volume: 525,429
• 30 Day Avg. Volume: 541,748
• PEG Ratio: 0.20
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.60
• 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: £235.00
• Price Target Upside: 26.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: 203.00p ▲(9.02%Upside)

Forterra's overall stock score reflects a mix of stable financial performance, neutral technical indicators, and positive corporate developments. The company's strengths lie in its stable equity base and recent revenue growth. However, the pressure on profitability and increased leverage are concerning. The technical analysis suggests a cautious approach, while corporate events provide optimism for future growth.

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 makes money by manufacturing and selling a wide range of water and drainage infrastructure products. The company's primary revenue streams include the sale of concrete pipes, precast concrete structures, and other related products used in water management and drainage systems. These products are sold to a diverse customer base, including contractors, developers, municipalities, and utility companies, who use them in construction and infrastructure projects. Forterra's earnings are significantly influenced by construction activity levels, government infrastructure spending, and the overall demand for water management solutions. The company may also engage in strategic partnerships and contracts with government entities and large construction firms to secure long-term projects and ensure a steady revenue flow.

Forterra Financial Statement Overview

Summary

Forterra shows a mixed financial performance with stable equity and improved cash generation. However, profitability is under pressure and increased leverage poses a risk.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	344.30M	346.40M	455.50M	370.40M	291.90M
Gross Profit	103.00M	100.70M	160.70M	128.40M	64.70M
EBITDA	54.70M	44.10M	85.50M	61.40M	15.10M
Net Income	17.50M	12.80M	58.80M	45.50M	-5.60M
Balance Sheet
Total Assets	442.40M	444.70M	397.60M	350.00M	307.90M
Cash, Cash Equivalents and Short-Term Investments	15.20M	16.00M	34.30M	41.50M	31.50M
Total Debt	121.00M	133.40M	58.00M	16.50M	24.40M
Total Liabilities	217.50M	236.90M	177.10M	115.20M	103.80M
Stockholders Equity	224.90M	207.80M	220.50M	234.80M	204.10M
Cash Flow
Free Cash Flow	16.60M	-54.10M	31.50M	33.30M	15.40M
Operating Cash Flow	42.20M	-20.00M	75.60M	68.20M	40.30M
Investing Cash Flow	-25.60M	-33.80M	-41.20M	-20.00M	-24.90M
Financing Cash Flow	-17.40M	35.50M	-41.60M	-38.20M	-10.50M

Forterra Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 186.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FORT, the sentiment is Negative. The current price of 186.2 is below the 20-day moving average (MA) of 194.10, below the 50-day MA of 193.10, and above the 200-day MA of 175.64, indicating a neutral trend. The MACD of -1.26 indicates Positive momentum. The RSI at 35.41 is Neutral, neither overbought nor oversold. The STOCH value of 13.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FORT.

Forterra Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBH	78 Outperform	£102.41M	16.84	6.47%	377.47%	-9.35%	-35.39%
BREE	77 Outperform	£1.25B	13.90	7.90%	400.77%	7.83%	-7.40%
SRC	76 Outperform	£1.30B	55.79	3.68%	―	65.87%	3.47%
MSLH	64 Neutral	£527.27M	17.09	4.76%	348.78%	-7.75%	66.58%
FORT	63 Neutral	£392.16M	22.41	8.09%	161.12%	-0.61%	34.19%
IBST	57 Neutral	£588.83M	38.85	3.80%	196.77%	-9.77%	-28.49%
Sector *	44 Neutral	C$980.66M	-6.79	-13.68%	1.76%	17.37%	-32.98%

Forterra Corporate Events

Forterra plc Announces Change in Major Shareholder Voting Rights

Forterra plc has reported a change in the voting rights held by Cobas Asset Management, SGIIC, S.A., a Spanish investment management firm. The firm’s stake in Forterra has decreased from 5.994181% to 4.950893%, indicating a reduction in their influence over the company’s decisions. This adjustment in holdings could impact Forterra’s shareholder dynamics and reflects a shift in investment strategy by Cobas Asset Management.

The most recent analyst rating on (GB:FORT) stock is a Hold with a £170.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Forterra’s Martin Sutherland to Chair XPS Pensions Group

Forterra plc has announced that Martin Sutherland, a Non-Executive Director of the company, will take on the role of Chair at XPS Pensions Group Plc after their AGM in September 2025. This appointment may enhance Forterra’s strategic ties with XPS Pensions Group, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (GB:FORT) stock is a Hold with a £170.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Forterra plc Annual General Meeting 2025: All Resolutions Passed

Forterra plc successfully held its Annual General Meeting on May 20, 2025, where all proposed resolutions were passed by shareholders. Key resolutions included the adoption of the annual report, reappointment of auditors, approval of a final dividend, and the election and re-election of directors. The approval of these resolutions reflects strong shareholder support and positions the company for continued stability and growth in the construction materials market.

The most recent analyst rating on (GB:FORT) stock is a Hold with a £170.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Forterra Reports Strong Revenue Growth Amid Housebuilding Surge

Forterra plc has reported a 22% year-over-year increase in revenue for the first four months of FY25, driven by strong performances in its divisions and an uplift in housebuilding. Despite the positive start, the company maintains conservative expectations for the year, with potential for upgrades if current momentum continues.

The most recent analyst rating on (GB:FORT) stock is a Hold with a £170.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Forterra Reports Strong Start to 2025 with Increased Revenue

Forterra plc reported a strong start to 2025 with a 22% increase in revenue, driven by improved demand in the housebuilding sector. The company is ramping up production capacity, including at its Desford and Wilnecote facilities, to meet demand and is strategically positioned to benefit from market recovery, despite global economic uncertainties.

The most recent analyst rating on (GB:FORT) stock is a Hold with a £170.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Cobas Asset Management Adjusts Stake in Forterra plc

Cobas Asset Management, a Madrid-based investment firm, has adjusted its holdings in Forterra plc, reducing its voting rights from 6.162132% to 5.994181%. This change reflects a minor adjustment in Cobas’s investment strategy, potentially impacting Forterra’s shareholder dynamics and indicating a shift in investor confidence or strategy.

The most recent analyst rating on (GB:FORT) stock is a Hold with a £170.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.