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Forterra PLC (GB:FORT)
LSE:FORT

Forterra (FORT) AI Stock Analysis

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Forterra

(LSE:FORT)

Rating:69Neutral
Price Target:
208.00p
▲(8.45%Upside)
Forterra's stock score reflects strong corporate event outcomes and positive technical momentum, offset by financial performance concerns and a relatively high valuation. The company's strategic actions and market positioning offer potential for future growth, though profitability and leverage remain areas to watch.

Forterra (FORT) vs. iShares MSCI United Kingdom ETF (EWC)

Forterra Business Overview & Revenue Model

Company DescriptionForterra (FORT) is a leading manufacturer of water and drainage infrastructure products in the United States. The company operates in the building materials sector, providing essential products for water-related infrastructure, including pipes, precast products, and other drainage solutions. Forterra serves a variety of end markets, including residential, non-residential, and infrastructure projects, leveraging its extensive distribution network and manufacturing capabilities to meet the diverse needs of its customers.
How the Company Makes MoneyForterra makes money primarily by manufacturing and selling water and drainage infrastructure products. Its revenue model is based on the sale of pipes, precast concrete, and related products used in construction and infrastructure projects. Key revenue streams include sales to residential construction, non-residential construction, and infrastructure sectors. The company benefits from a broad distribution network and strategic manufacturing locations that help minimize transportation costs and improve delivery times. Forterra's earnings are also influenced by construction market trends, government infrastructure spending, and partnerships with contractors and distributors who integrate Forterra's products into their projects.

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
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue344.30M346.40M455.50M370.40M291.90M
Gross Profit103.00M100.70M160.70M128.40M64.70M
EBITDA54.70M44.10M85.50M61.40M15.10M
Net Income17.50M12.80M58.80M45.50M-5.60M
Balance Sheet
Total Assets442.40M444.70M397.60M350.00M307.90M
Cash, Cash Equivalents and Short-Term Investments15.20M16.00M34.30M41.50M31.50M
Total Debt121.00M133.40M58.00M16.50M24.40M
Total Liabilities217.50M236.90M177.10M115.20M103.80M
Stockholders Equity224.90M207.80M220.50M234.80M204.10M
Cash Flow
Free Cash Flow16.60M-54.10M31.50M33.30M15.40M
Operating Cash Flow42.20M-20.00M75.60M68.20M40.30M
Investing Cash Flow-25.60M-33.80M-41.20M-20.00M-24.90M
Financing Cash Flow-17.40M35.50M-41.60M-38.20M-10.50M

Forterra Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price191.80
Price Trends
50DMA
1.90
Positive
100DMA
1.76
Positive
200DMA
1.74
Positive
Market Momentum
MACD
0.01
Positive
RSI
49.54
Neutral
STOCH
51.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FORT, the sentiment is Neutral. The current price of 191.8 is above the 20-day moving average (MA) of 1.93, above the 50-day MA of 1.90, and above the 200-day MA of 1.74, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 49.54 is Neutral, neither overbought nor oversold. The STOCH value of 51.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:FORT.

Forterra Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBMBH
78
Outperform
£98.26M16.166.47%4.19%-9.35%-35.39%
GBSRC
73
Outperform
£1.18B50.533.68%65.87%3.47%
69
Neutral
£403.96M23.088.09%2.08%-0.61%34.19%
69
Neutral
£1.30B13.338.44%5.34%5.97%-9.81%
67
Neutral
£666.95M21.624.76%2.99%-7.75%66.58%
57
Neutral
£2.72B4.90-9.97%3.95%-1.19%-6.71%
56
Neutral
£572.26M37.763.80%2.53%-9.77%-28.49%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FORT
Forterra
1.92
0.15
8.47%
GB:IBST
Ibstock
145.00
-37.83
-20.69%
GB:BREE
Breedon
374.20
-13.70
-3.53%
GB:SRC
SigmaRoc
105.60
37.40
54.84%
GB:MSLH
Marshalls
2.65
-0.51
-16.14%
GB:MBH
Michelmersh Brick Holdings
1.06
0.10
10.42%

Forterra Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Forterra’s Martin Sutherland to Chair XPS Pensions Group
Neutral
Jun 19, 2025

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.

Shareholder MeetingsDividends
Forterra plc Annual General Meeting 2025: All Resolutions Passed
Positive
May 20, 2025

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.

Business Operations and StrategyFinancial Disclosures
Forterra Reports Strong Revenue Growth Amid Housebuilding Surge
Positive
May 20, 2025

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.

Business Operations and StrategyFinancial Disclosures
Forterra Reports Strong Start to 2025 with Increased Revenue
Positive
May 20, 2025

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.

Business Operations and Strategy
Cobas Asset Management Adjusts Stake in Forterra plc
Neutral
May 13, 2025

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.

Regulatory Filings and Compliance
Forterra CFO and Spouse Adjust Shareholdings
Neutral
Apr 11, 2025

Forterra plc announced share transactions involving its Chief Financial Officer, Ben Guyatt, and his spouse, Wendy Guyatt. Ben Guyatt sold 37,622 shares and purchased 23,520 shares, while Wendy Guyatt purchased 12,433 shares. These transactions were made to fully utilize their ISA allowances, and Ben Guyatt’s total beneficial interest now stands at 148,029 shares. This notification fulfills Forterra’s obligations under the Market Abuse Regulations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 22, 2025