The capital turnover (annual revenue relative to shareholder's equity) for FRTA is 9.3 -- better than 96.69% of US stocks.
FRTA's equity multiplier -- a measure of assets relative to shareholders'equity -- is greater than that of 96.2% of US stocks.
Forterra Inc's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 17.93%, greater than the shareholder yield of 87.81% of stocks in our set.
Stocks that are quantitatively similar to FRTA, based on their financial statements, market capitalization, and price volatility, are SMTX, RILY, PEIX, MTG, and VRTS.
Forterra plc produces and sells masonry products in the United Kingdom. It offers bricks under the London Brick brand; aircrete blocks under the Thermalite brand, and aggregate blocks. The company also provides bespoke products comprising precast concrete under the Jetfloor brand, concrete block paving under the Formpave brand, chimney and roofing solutions under the Red Bank brand, and structural external wall insulation products under the Structherm brand. It serves builders’ merchants, residential homebuilders, specialist brick merchants, contractors, and subcontractors. The company is headquartered in Northampton, the United Kingdom.
FRTA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FRTA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Forterra Inc ranked in the 93th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for FRTA, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 53. Its equity weight surpasses that of merely 18.98% of free cash flow generating stocks in the Basic Materials sector.
Its compound free cash flow growth rate, as measured over the past 3.58 years, is 0.91% -- higher than 89.32% of stocks in our DCF forecasting set.
The business' balance sheet suggests that 47% of the company's capital is sourced from debt; this is greater than 74.22% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FRTA, try APOG, AVTR, FUL, VEDL, and TGLS.
Forterra (FRTA) slips 4% after-hours after pricing its secondary offering by the largest stockholder, an affiliate of Lone Star Funds (Selling Stockholder) of 10M common shares at $13.50/share, a 7.6% discount from yesterday's close of $14.61.Underwriters' over-allotment is an additional 1.5M Selling Stockholder's shares.Lone Star Funds' affiliate will receive all of the proceeds from...