Forterra (FORT) AI Stock Analysis

• Market Cap: £401.43M
• Dividend Yield: 1.57%
• Average Volume (3M): 500.75K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.48
• Revenue Growth: 15.99%
• EPS Growth: 96.05%
• Country: UK
• Employees: 1,500
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Construction Materials
• EPS (TTM): 0.06
• Shares Outstanding: 212,803,390
• 10 Day Avg. Volume: 587,790
• 30 Day Avg. Volume: 500,746
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £236.00
• Price Target Upside: 23.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 60 Neutral
• Price Target: 201.00p ▲(5.46% Upside)

Forterra's overall stock score reflects a mixed financial performance with stable equity but profitability pressures and increased leverage. Technical analysis indicates a lack of strong momentum, and valuation metrics suggest the stock is relatively expensive. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Forterra's robust revenue growth highlights its strong market position and ability to capitalize on increasing demand for construction materials, particularly in infrastructure projects.

Cash Generation

Enhanced operating cash flow reflects Forterra's effective cash management and operational efficiency, providing a solid foundation for reinvestment and debt management.

Equity Stability

A stable and growing equity base underscores Forterra's financial resilience and ability to deliver shareholder value, supporting long-term strategic initiatives.

Negative Factors

Profitability Pressures

Declining profitability margins indicate challenges in maintaining cost efficiency and pricing power, which could affect Forterra's long-term earnings potential.

Increased Leverage

Higher leverage could strain Forterra's financial flexibility, increasing risk and potentially impacting its ability to invest in growth opportunities.

Volatile Revenue Trend

The volatility in revenue trends suggests potential instability in Forterra's market demand, which could challenge consistent growth and strategic planning.

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 products, including precast concrete pipes, blocks, and other related items. The company operates through various segments, with key revenue streams derived from infrastructure projects, including water and sewer systems, as well as commercial and residential construction. Forterra has established significant partnerships with construction firms and municipalities that contribute to its earnings by securing long-term contracts for the supply of its products. Additionally, the company benefits from a growing demand for sustainable building materials, which enhances its market position and allows for premium pricing on environmentally friendly offerings.

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: Neutral
• Last Price: 190.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 190.6 is below the 20-day moving average (MA) of 191.67, below the 50-day MA of 194.09, and above the 200-day MA of 177.24, indicating a neutral trend. The MACD of -1.32 indicates Negative momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 66.92 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRC	76 Outperform	£1.31B	29.28	6.07%	―	32.27%	―
MBH	70 Outperform	£90.10M	17.19	5.71%	4.28%	-0.29%	-33.41%
BREE	70 Outperform	£1.25B	13.87	7.90%	4.02%	7.83%	-7.40%
MSLH	67 Neutral	£432.39M	18.26	3.57%	4.21%	1.31%	10.19%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
FORT	60 Neutral	£401.43M	25.58	7.03%	1.57%	15.99%	96.05%
IBST	59 Neutral	£524.11M	43.12	3.10%	2.51%	5.58%	66.49%

Forterra Corporate Events

Forterra’s Strong Performance and Positive Outlook Boosts Profit Forecast

Forterra has reported a significant 82% increase in adjusted profit before tax for the first half of the year, driven by strong revenue growth from its exposure to volume housebuilders. The company has raised its profit forecast for the full year and increased its interim dividend by 90%, reflecting a positive outlook and reduced debt levels.

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 Increases Full-Year Expectations Amid Strong H1 Performance

Forterra reported a robust performance for the first half of 2025, with a 20.4% increase in revenue driven by strong demand from the housebuilding sector. The company’s strategic focus on housing has led to an outperformance relative to the broader brick market, despite market share remaining below 2022 levels. Forterra is making significant strides in its operations, including the commissioning of new production facilities and strategic exits from non-core businesses, which are expected to enhance margins and cash flow. The company has increased its full-year expectations, reflecting improved market conditions and operational efficiencies, although it remains cautious about the broader UK economy’s impact on the housing 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.