Forterra Plc (FORT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sigmaroc Plc

Epwin Group Plc

Eco Buildings Group Plc

Breedon Group Plc

Forterra Plc

CRH Plc

Marshalls Plc

Steppe Cement Ltd.

Ibstock Plc

Michelmersh Brick Holdings Plc

Pathfinder Minerals Plc

Why is Forterra Plc ?

High Management Efficiency with a high ROCE of 17.27%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.77

Poor long term growth as Operating profit has grown by an annual rate 14.98% of over the last 5 years

With a growth in Net Profit of 36.11%, the company declared Very Positive results in Dec 25

INTEREST COVERAGE RATIO(Q) Highest at 1,146.15
DIVIDEND PAYOUT RATIO(Y) Highest at 92.27%
RAW MATERIAL COST(Y) Fallen by -33.79% (YoY)

With ROE of 9.33%, it has a expensive valuation with a 1.21 Price to Book Value

Over the past year, while the stock has generated a return of -28.83%, its profits have risen by 12% ; the PEG ratio of the company is 1.1

Below par performance in long term as well as near term

Along with generating -28.83% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Forterra Plc should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Forterra Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Forterra Plc

-28.83%

-0.72

29.66%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.75%

EBIT Growth (5y)

14.98%

EBIT to Interest (avg)

11.77

Debt to EBITDA (avg)

0.72

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

1.35

Tax Ratio

29.44%

Dividend Payout Ratio

76.92%

Pledged Shares

Institutional Holding

ROCE (avg)

17.27%

ROE (avg)

14.37%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.21

EV to EBIT

8.34

EV to EBITDA

5.66

EV to Capital Employed

1.16

EV to Sales

0.89

PEG Ratio

1.08

Dividend Yield

466.31%

ROCE (Latest)

13.95%

ROE (Latest)

9.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,146.15

DIVIDEND PAYOUT RATIO(Y)

Highest at 92.27%

RAW MATERIAL COST(Y)

Fallen by -33.79% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 32.15 %

DEBTORS TURNOVER RATIO(HY)

Highest at 10.89 times

PRE-TAX PROFIT(Q)

Highest at GBP 16.1 MM

NET PROFIT(Q)

Highest at GBP 11.77 MM

EPS(Q)

Highest at GBP 0.05

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at GBP 6.1 MM

Here's what is working for Forterra Plc

Interest Coverage Ratio

Highest at 1,146.15

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at GBP 16.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 11.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Debt-Equity Ratio

Lowest at 32.15 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 10.89 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 92.27%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -33.79% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Forterra Plc

Cash and Eqv

Lowest at GBP 6.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents