Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Forterra

DB:05G
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
05G
DB
$367M
Market Cap
  1. Home
  2. DE
  3. Materials
Company description

Forterra, Inc. manufactures and sells pipe and precast products the United States, Canada, and Mexico. The last earnings update was 41 days ago. More info.


Add to Portfolio Compare Print
  • Forterra has significant price volatility in the past 3 months.
05G Share Price and Events
7 Day Returns
4.8%
DB:05G
6.6%
Europe Basic Materials
2.1%
DE Market
1 Year Returns
47.5%
DB:05G
-26.7%
Europe Basic Materials
-16.6%
DE Market
05G Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Forterra (05G) 4.8% -35.9% -49.1% 47.5% -67.6% -
Europe Basic Materials 6.6% -18.2% -32.2% -26.7% -36.7% -34%
DE Market 2.1% -12.6% -22.9% -16.6% -21.9% -27.8%
1 Year Return vs Industry and Market
  • 05G outperformed the Basic Materials industry which returned -26.7% over the past year.
  • 05G outperformed the Market in Germany which returned -16.6% over the past year.
Price Volatility
05G
Industry
5yr Volatility vs Market

Value

 Is Forterra undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Forterra to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Forterra.

DB:05G Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:05G
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.817 (1 + (1- 21%) (358.35%))
2.428
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (2 * 5.44%)
10.49%

Discounted Cash Flow Calculation for DB:05G using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Forterra is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:05G DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.49%)
2020 -25.00 Analyst x1 -22.63
2021 64.00 Analyst x1 52.42
2022 51.00 Analyst x1 37.81
2023 48.39 Est @ -5.11% 32.47
2024 46.61 Est @ -3.69% 28.30
2025 45.35 Est @ -2.7% 24.92
2026 44.44 Est @ -2.01% 22.10
2027 43.76 Est @ -1.52% 19.70
2028 43.24 Est @ -1.18% 17.62
2029 42.83 Est @ -0.95% 15.80
Present value of next 10 years cash flows $228.00
DB:05G DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $42.83 × (1 + -0.39%) ÷ (10.49% – -0.39%)
$392.15
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $392.15 ÷ (1 + 10.49%)10
$144.62
DB:05G Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $228.00 + $144.62
$372.62
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $372.62 / 64.85
$5.75
DB:05G Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:05G represents 0.9629x of NasdaqGS:FRTA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.9629x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 5.75 x 0.9629
€5.53
Value per share (EUR) From above. €5.53
Current discount Discount to share price of €5.45
= -1 x (€5.45 - €5.53) / €5.53
1.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Forterra is available for.
Intrinsic value
1%
Share price is €5.45 vs Future cash flow value of €5.53
Current Discount Checks
For Forterra to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Forterra's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Forterra's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Forterra's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Forterra's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:05G PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-0.11
NasdaqGS:FRTA Share Price ** NasdaqGS (2020-04-07) in USD $5.66
Europe Basic Materials Industry PE Ratio Median Figure of 33 Publicly-Listed Basic Materials Companies 9.52x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 16.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Forterra.

DB:05G PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:FRTA Share Price ÷ EPS (both in USD)

= 5.66 ÷ -0.11

-49.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Forterra is loss making, we can't compare its value to the Europe Basic Materials industry average.
  • Forterra is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Forterra's expected growth come at a high price?
Raw Data
DB:05G PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -49.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
48%per year
Europe Basic Materials Industry PEG Ratio Median Figure of 17 Publicly-Listed Basic Materials Companies 1.67x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Forterra, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Forterra's assets?
Raw Data
DB:05G PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $1.87
NasdaqGS:FRTA Share Price * NasdaqGS (2020-04-07) in USD $5.66
Europe Basic Materials Industry PB Ratio Median Figure of 39 Publicly-Listed Basic Materials Companies 0.85x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.45x
DB:05G PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:FRTA Share Price ÷ Book Value per Share (both in USD)

= 5.66 ÷ 1.87

3.03x

* Primary Listing of Forterra.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Forterra is overvalued based on assets compared to the Europe Basic Materials industry average.
X
Value checks
We assess Forterra's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. Forterra has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Forterra expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
48%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Forterra expected to grow at an attractive rate?
  • Forterra's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Forterra's earnings growth is expected to exceed the Germany market average.
  • Forterra's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:05G Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:05G Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 48%
DB:05G Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 2.3%
Europe Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Europe Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:05G Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:05G Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 137 63
2023-12-31 1,679 133 49 1
2022-12-31 1,617 111 31 1
2021-12-31 1,564 128 30 4
2020-12-31 1,483 76 -3 4
2020-04-08
DB:05G Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,530 147 -7
2019-09-30 1,506 122 -17
2019-06-30 1,476 47 -34
2019-03-31 1,482 27 -29
2018-12-31 1,480 27 -24
2018-09-30 1,502 53 36
2018-06-30 1,511 122 19
2018-03-31 1,532 77 1
2017-12-31 1,580 42 -2
2017-09-30 1,573 7 -90
2017-06-30 1,570 -43 -74
2017-03-31 1,515 35 -32

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Forterra's earnings are expected to grow significantly at over 20% yearly.
  • Forterra's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:05G Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Forterra Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:05G Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 0.98 0.98 0.98 1.00
2023-12-31 0.75 0.75 0.75 1.00
2022-12-31 0.48 0.48 0.48 1.00
2021-12-31 0.46 0.90 0.15 3.00
2020-12-31 0.19 0.69 -0.19 3.00
2020-04-08
DB:05G Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -0.11
2019-09-30 -0.26
2019-06-30 -0.52
2019-03-31 -0.46
2018-12-31 -0.38
2018-09-30 0.56
2018-06-30 0.29
2018-03-31 0.01
2017-12-31 -0.03
2017-09-30 -1.44
2017-06-30 -1.28
2017-03-31 -0.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Forterra will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Forterra's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Forterra has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Forterra performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Forterra's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Forterra does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Forterra's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Forterra's 1-year growth to the Europe Basic Materials industry average as it is not currently profitable.
Earnings and Revenue History
Forterra's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Forterra Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:05G Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,529.75 -7.33 170.47
2019-09-30 1,505.76 -16.61 170.43
2019-06-30 1,475.74 -33.53 159.78
2019-03-31 1,481.61 -29.49 157.61
2018-12-31 1,479.71 -24.37 156.58
2018-09-30 1,501.73 35.75 161.69
2018-06-30 1,511.47 18.68 198.36
2018-03-31 1,532.07 0.64 187.70
2017-12-31 1,580.41 -2.06 199.23
2017-09-30 1,573.36 -90.36 195.69
2017-06-30 1,570.23 -74.43 197.98
2017-03-31 1,515.27 -31.54 185.84
2016-12-31 1,363.96 -11.09 164.00
2016-09-30 1,101.47 13.54 143.79
2016-06-30 901.76 -5.79 150.82
2016-03-31 733.34 -54.79 122.87
2015-12-31 716.97 -70.19 118.46
2014-12-31 597.43 9.42 68.16
2013-12-31 697.95 -244.28 87.39

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Forterra has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Forterra used its assets less efficiently than the Europe Basic Materials industry average last year based on Return on Assets.
  • It is difficult to establish if Forterra improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Forterra's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Forterra has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Forterra's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Forterra's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Forterra is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Forterra's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Forterra's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Forterra Company Filings, last reported 3 months ago.

DB:05G Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 120.97 1,098.30 34.80
2019-09-30 124.00 1,168.53 43.85
2019-06-30 98.84 1,223.06 16.79
2019-03-31 93.52 1,227.17 8.18
2018-12-31 108.22 1,188.61 35.79
2018-09-30 128.87 1,189.89 30.35
2018-06-30 120.46 1,191.18 30.18
2018-03-31 113.09 1,192.47 53.36
2017-12-31 132.49 1,193.79 104.53
2017-09-30 88.34 1,195.06 41.13
2017-06-30 99.92 1,272.79 22.02
2017-03-31 111.31 1,215.40 27.54
2016-12-31 132.92 1,096.05 40.02
2016-09-30 204.39 1,260.75 36.22
2016-06-30 203.47 1,239.78 41.82
2016-03-31 104.53 724.32 11.80
2015-12-31 52.32 705.83 26.03
2014-12-31 657.47 0.00 0.04
2013-12-31
  • Forterra's level of debt (907.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.3% vs 907.9% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Forterra has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Forterra has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 3.1% per year.
X
Financial health checks
We assess Forterra's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Forterra has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Forterra's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Forterra dividends. Estimated to be 0% next year.
If you bought €2,000 of Forterra shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Forterra's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Forterra's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:05G Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Europe Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:05G Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31 0.00 1.00
2022-12-31 0.00 2.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2020-04-08

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Forterra has not reported any payouts.
  • Unable to verify if Forterra's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Forterra's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Forterra has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Forterra's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Forterra's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Forterra afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Forterra has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Forterra's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Karl Watson
COMPENSATION $7,811,078
AGE 54
TENURE AS CEO 0.8 years
CEO Bio

Mr. Karl H. Watson, Jr., has been the Chief Executive Officer & Director at Forterra, Inc. since July 1, 2019. Mr. Watson serves as Executive Vice President and Chief Operating Officer of Summit Materials, LLC since January 8, 2018. Mr. Watson served as Executive Vice President and Chief Operating Officer of Summit Materials, Inc. since January 8, 2018 until June 6, 2019. Mr. Watson served as Consultant at Summit Materials, Inc. for smooth transition in roles from June 6, 2019 to June 28, 2019. Mr. Watson joined Summit Materials in January 2018 with lots of experience in the construction materials industry. Mr. Watson is on the board of directors of the Texas Aggregates & Concrete Association. From January 2017 to December 2017, Mr. Watson served as President, Cement & Southwest Ready Mix at Martin Marietta. Mr. Watson served as the President of CEMEX USA at CEMEX, S.A.B. de C.V. since April 12, 2011 until January 1, 2016 and served as its Advisor from January 1, 2016 to June 30, 2016. He served as Global Relation Manager and Network Leader at CEMEX from 2011 to 2015. He was chairman of the National Ready Mix Concrete Association and the Florida Concrete and Products Association and was on the board of directors of the National Stone, Sand and Gravel Association from 2007 to 2011. Mr. Watson was responsible for CEMEX overseeing commercial sales activities as well as aggregates, ready mix, concrete product and gypsum operations in Florida. He served as Regional President of East at CEMEX, Inc. He joined CEMEX in 2007. Since then he has held several senior positions in CEMEX’s operations in Florida and the Eastern region of the United States. Before joining CEMEX he headed the ready-mix concrete and concrete products divisions of Rinker in the USA and Australia. He served as the President of Rinker Materials West, LLC from June 2004 to March 31, 2006. From 2008 to 2011, Mr. Watson served as President of CEMEX, Florida and CEMEX, East, USA. From 1988 to 2008, Mr. Watson served in various positions at Rinker Group Ltd. Previously, he served as the Chief Executive of Readymix in Australia and Vice President of Florida Materials. He served as Chief Executive Officer - Construction Materials at CSR Limited from 2001 to March 28, 2003. He has 20 years of experience in the construction materials industry and worked through variety of roles. He served as a Director Fidelity Federal Bank & Trust. Mr. Watson has a Bachelor's of Science degree in Business Administration from Palm Beach Atlantic University and an MBA from the University of Nova Southeastern, Florida.

CEO Compensation
  • Insufficient data for Karl to compare compensation growth.
  • Karl's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Forterra management team in years:

2.6
Average Tenure
54
Average Age
  • The tenure for the Forterra management team is about average.
Management Team

Karl Watson

TITLE
CEO & Director
COMPENSATION
$8M
AGE
54
TENURE
0.8 yrs

Charlie Brown

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
55
TENURE
2.6 yrs

Lori Browne

TITLE
Executive VP
COMPENSATION
$1M
AGE
44
TENURE
5.1 yrs

Vik Bhatia

TITLE
President of Water Pipe & Products
COMPENSATION
$1M
AGE
42

Rich Hunter

TITLE
President of Drainage Pipe & Products
COMPENSATION
$2M
AGE
57
TENURE
1.1 yrs

David Lawrence

TITLE
Vice President of Treasury & Investor Relations

Truman Greene

TITLE
Senior Vice President of Human Resources
TENURE
1.3 yrs

Ed Sexe

TITLE
Senior Vice President of Stormwater Management Systems
AGE
54
TENURE
4.3 yrs

Charlie Ward

TITLE
Senior Vice President and General Manager of Bricks
COMPENSATION
$974K
AGE
57
TENURE
9.5 yrs

Matt Wayman

TITLE
Senior VP and GM of Drainage Pipe & Products -South (KY
AGE
40
Board of Directors Tenure

Average tenure and age of the Forterra board of directors in years:

2
Average Tenure
48
Average Age
  • The average tenure for the Forterra board of directors is less than 3 years, this suggests a new board.
Board of Directors

Chris Meyer

TITLE
Chairman
AGE
48
TENURE
2.8 yrs

Karl Watson

TITLE
CEO & Director
COMPENSATION
$8M
AGE
54
TENURE
0.8 yrs

John McPherson

TITLE
Non-Executive Vice Chairman & Lead Director
COMPENSATION
$499K
AGE
51
TENURE
0.8 yrs

Clint McDonnough

TITLE
Independent Director
COMPENSATION
$203K
AGE
63
TENURE
3.5 yrs

Rafael Colorado

TITLE
Non-Independent Director
AGE
41
TENURE
1.6 yrs

Jacques Sarrazin

TITLE
Independent Director
COMPENSATION
$183K
AGE
69
TENURE
3.5 yrs

Chip Cammerer

TITLE
Non-Independent Director
AGE
45
TENURE
2 yrs

Chad Lewis

TITLE
Non-Independent Director
AGE
36
TENURE
2 yrs

Maureen Harrell

TITLE
Non-Independent Director
AGE
39
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
11. Sep 19 Buy Karl Watson Individual 09. Sep 19 09. Sep 19 8,465 €5.64 €47,767
07. Sep 19 Buy Karl Watson Individual 05. Sep 19 06. Sep 19 30,000 €5.41 €161,995
14. Aug 19 Buy Clinton McDonnough Individual 14. Aug 19 14. Aug 19 10,000 €6.14 €61,382
06. Sep 19 Buy Karl Watson Individual 09. Aug 19 09. Aug 19 65,200 €6.19 €403,393
12. Aug 19 Buy Vikrant Bhatia Individual 08. Aug 19 08. Aug 19 17,175 €5.85 €100,489
X
Management checks
We assess Forterra's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Forterra has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Forterra, Inc. manufactures and sells pipe and precast products the United States, Canada, and Mexico. It operates through Drainage Pipe & Products; and Water Pipe & Products segments. The company offers concrete drainage pipes used for storm water applications, residential and non-residential site developments, sanitary sewers, low-pressure sewer force mains, tunneled systems, treatment plant piping, and utility tunnels. It provides box culverts, utility vaults, manholes, drainage inlets, and pipe end sections used for roadway and airport drainage, storm water management, utility construction, and water treatment and filtration systems; and architectural panels for buildings, modular railroad crossings, retaining wall and storm water treatment systems, highway noise barriers, and concrete vaults that are used to house dry or wet utilities. The company offers hollow-core planks, prestressed bridge girders, beams, columns, wall panels, stairs, garage floors, and architectural claddings for infrastructure and non-residential applications; and precast concrete bridge girders for highway projects. It provides precast concrete foundation to support prefabricated shelters or equipment buildings; precast product that consolidates and protects underground electrical and communication cables; and storm water technologies for storm water management market. The company offers ductile iron pipes for transmission and distribution of potable and waste water, and smaller diameter applications; concrete pressure pipes for water transmission and distribution, power plant cooling water lines, sewage force mains for waste and storm water, and other various applications; and prestressed concrete and bar-wrapped concrete pipes. It serves construction contractors, developers, utility companies and contractors, municipalities, and waterworks distributors and contractors through distributors. The company was founded in 1899 and is headquartered in Irving, Texas.

Details
Name: Forterra, Inc.
05G
Exchange: DB
Founded: 1899
$337,042,131
64,853,060
Website: http://www.forterrabp.com
Address: Forterra, Inc.
511 East John Carpenter Freeway,
6th Floor,
Irving,
Texas, 75062,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS FRTA Common Stock Nasdaq Global Select US USD 20. Oct 2016
DB 05G Common Stock Deutsche Boerse AG DE EUR 20. Oct 2016
BRSE 05G Common Stock Berne Stock Exchange CH CHF 20. Oct 2016
Number of employees
Current staff
Staff numbers
4,578
Forterra employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 01:59
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.