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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Forterra Inc. To summarize, we found that Forterra Inc ranked in the 92th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 3085.5%. As for the metrics that stood out in our discounted cash flow analysis of Forterra Inc, consider:
Its compound free cash flow growth rate, as measured over the past 3.33 years, is 0.92% -- higher than 90.44% of stocks in our DCF forecasting set.
44% of the company's capital comes from equity, which is greater than just 22.91% of stocks in our cash flow based forecasting set.
Relative to other stocks in its sector (Basic Materials), Forterra Inc has a reliance on debt greater than 81.41% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FSI, ITP, LPX, DOW, and BMCH can be thought of as valuation peers to FRTA, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Forterra, Inc. (FRTA) Q2 2020 Earnings Conference Call July 28, 2020 10:00 AM ET Company Participants Charlie Brown - Chief Financial Officer Karl Watson, Jr. - Chief Executive Officer Conference Call Participants Rohit Seth - SunTrust Jatin Khanna - Goldman Sachs Daniel Wang - Berenberg Mike Dahl - RBC Capital...