Forterra (FORT) AI Stock Analysis

• Market Cap: £408.17M
• Dividend Yield: 2.06%
• Average Volume (3M): 900.39K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.40
• Revenue Growth: -0.61%
• EPS Growth: 34.19%
• Country: UK
• Employees: 1,500
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Construction Materials
• EPS (TTM): 0.08
• Shares Outstanding: 212,803,390
• 10 Day Avg. Volume: 464,631
• 30 Day Avg. Volume: 900,389
• PEG Ratio: -1.31
• Price to Book (P/B): 4.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.07
• 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: 21.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: 208.00p ▲(7.33%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 Business Overview & Revenue Model

Company Description

Forterra (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 Money

Forterra 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

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
	EBIT
33.90M	24.10M	69.00M	45.00M	20.40M
	EBITDA
54.70M	44.10M	85.50M	61.40M	15.10M
	Net Income Common Stockholders
17.50M	12.80M	58.80M	45.50M	-5.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.20M	16.00M	34.30M	41.50M	31.50M
	Total Assets
442.40M	444.70M	397.60M	350.00M	307.90M
	Total Debt
121.00M	133.40M	58.00M	16.50M	24.40M
	Net Debt
105.80M	117.40M	23.70M	-25.00M	-7.10M
	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: Positive
• Last Price: 193.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 193.8 is above the 20-day moving average (MA) of 192.62, above the 50-day MA of 183.84, and above the 200-day MA of 172.33, indicating a bullish trend. The MACD of 3.01 indicates Positive momentum. The RSI at 55.88 is Neutral, neither overbought nor oversold. The STOCH value of 32.16 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
MBH	78 Outperform	£106.10M	17.45	6.47%	5.22%	-9.35%	-35.39%
BREE	76 Outperform	£1.51B	15.55	8.44%	4.58%	5.97%	-9.81%
SRC	73 Outperform	£1.18B	50.53	3.68%	―	65.87%	3.47%
FORT	69 Neutral	£408.17M	23.32	8.09%	2.06%	-0.61%	34.19%
MSLH	65 Neutral	£675.76M	21.90	4.76%	4.02%	-7.75%	66.58%
IBST	58 Neutral	£622.77M	41.09	3.80%	3.17%	-9.77%	-28.49%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

Forterra Corporate Events

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.

Forterra CFO and Spouse Adjust Shareholdings

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.

Forterra Director Increases Stake with Share Purchase

Forterra plc announced that Katherine Innes Ker, the Senior Independent Director, has purchased 2,600 Ordinary Shares of the company at a price of £1.73 per share, increasing her total beneficial interest to 6,164 shares. This transaction, disclosed under the Market Abuse Regulations, reflects confidence in the company’s market position and may influence stakeholder perceptions positively.

Forterra Publishes 2024 Annual Report and Announces 2025 AGM

Forterra plc has released its Annual Report and Accounts for 2024 and announced the Notice of its Annual General Meeting to be held in May 2025. The documents are available electronically and will be distributed to shareholders who requested hard copies. This release ensures transparency and compliance with UK financial regulations, reinforcing Forterra’s commitment to maintaining strong corporate governance and engaging with its stakeholders.

Forterra Announces Executive Share Option Vesting

Forterra plc announced the vesting of share options for its Executive Directors under the 2022 Deferred Annual Bonus Plan. The Chief Financial Officer, Ben Guyatt, exercised options and sold a portion of shares to cover tax liabilities, retaining the remainder. This transaction did not involve the issuance of new shares, as shares were transferred from the Forterra Employee Benefit Trust. The notification fulfills the company’s obligations under the Market Abuse Regulations.

Forterra plc Grants Performance-Based Share Awards to Key Executives

Forterra plc has announced the granting of awards over ordinary shares to certain directors and key personnel under its Performance Share Plan. These awards, totaling 1,965,064 shares, are subject to performance conditions related to earnings per share growth, total shareholder return, and reductions in carbon emissions and plastic packaging intensity. The awards are set to vest in March 2028, contingent on meeting these conditions, reflecting Forterra’s strategic focus on sustainability and financial performance, potentially impacting its market positioning and stakeholder value.

Forterra Announces Change in Major Holdings by GLG Partners

Forterra plc has announced a change in its major holdings, with GLG Partners LP crossing a significant threshold in their voting rights. This development indicates a shift in the financial instruments associated with Forterra, potentially impacting the company’s governance and stakeholder dynamics. The notification highlights a less than 5% change in voting rights, reflecting a strategic adjustment by GLG Partners LP, which could influence Forterra’s market positioning and investor relations.