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Forterra

DB:F0T
Snowflake Description

Excellent balance sheet, good value and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
F0T
DB
£398M
Market Cap
  1. Home
  2. DE
  3. Materials
Company description

Forterra plc manufactures and sells masonry products in the United Kingdom. The last earnings update was 28 days ago. More info.


Add to Portfolio Compare Print
  • Forterra has significant price volatility in the past 3 months.
F0T Share Price and Events
7 Day Returns
3.7%
DB:F0T
6.6%
Europe Basic Materials
2.1%
DE Market
1 Year Returns
-40.9%
DB:F0T
-26.7%
Europe Basic Materials
-16.6%
DE Market
F0T Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Forterra (F0T) 3.7% -44.6% -50.1% -40.9% -11.7% -
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
  • F0T underperformed the Basic Materials industry which returned -26.7% over the past year.
  • F0T underperformed the Market in Germany which returned -16.6% over the past year.
Price Volatility
F0T
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:F0T Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.5%
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:F0T
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
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- 19%) (21.07%))
0.971
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.971 * 6.07%)
5.51%

Discounted Cash Flow Calculation for DB:F0T 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:F0T DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 5.51%)
2020 11.25 Analyst x6 10.66
2021 22.27 Analyst x6 20.00
2022 37.65 Analyst x2 32.06
2023 39.90 Est @ 5.99% 32.21
2024 41.53 Est @ 4.08% 31.77
2025 42.67 Est @ 2.74% 30.94
2026 43.43 Est @ 1.8% 29.85
2027 43.93 Est @ 1.14% 28.61
2028 44.23 Est @ 0.68% 27.31
2029 44.39 Est @ 0.36% 25.97
Present value of next 10 years cash flows £269.00
DB:F0T DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £44.39 × (1 + -0.39%) ÷ (5.51% – -0.39%)
£750.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £750.06 ÷ (1 + 5.51%)10
£438.90
DB:F0T Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £269.00 + £438.90
£707.90
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £707.90 / 199.31
£3.55
DB:F0T Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:F0T represents 1.01351x of LSE:FORT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.01351x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 3.55 x 1.01351
€3.60
Value per share (EUR) From above. €3.60
Current discount Discount to share price of €2.03
= -1 x (€2.03 - €3.60) / €3.60
43.7%

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
44%
Share price is €2.03 vs Future cash flow value of €3.6
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, and at a moderate discount (> 20%).
  • Forterra's share price is below the future cash flow value, and 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:F0T PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in GBP £0.24
LSE:FORT Share Price ** LSE (2020-04-07) in GBP £2
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:F0T PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:FORT Share Price ÷ EPS (both in GBP)

= 2 ÷ 0.24

8.39x

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

  • Forterra is good value based on earnings compared to the Europe Basic Materials industry average.
  • Forterra is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Forterra's expected growth come at a high price?
Raw Data
DB:F0T PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
4.9%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 .

DB:F0T PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.39x ÷ 4.9%

1.7x

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

  • Forterra is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Forterra's assets?
Raw Data
DB:F0T PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in GBP £0.80
LSE:FORT Share Price * LSE (2020-04-07) in GBP £2
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:F0T PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:FORT Share Price ÷ Book Value per Share (both in GBP)

= 2 ÷ 0.80

2.51x

* 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 4/6, 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 10 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
4.9%
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 positive but not above the Germany market average.
  • Forterra's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:F0T Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:F0T Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 4.9%
DB:F0T Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 1.7%
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:F0T Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:F0T Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 436 102 67 1
2022-12-31 390 77 49 5
2021-12-31 380 76 48 9
2020-12-31 366 60 42 10
2020-04-07
DB:F0T Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-12-31 380 53 47
2019-09-30 381 62 50
2019-06-30 381 72 54
2019-03-31 374 69 53
2018-12-31 368 66 53
2018-09-30 358 67 51
2018-06-30 348 69 48
2018-03-31 340 73 48
2017-12-31 331 78 48
2017-09-30 321 70 46
2017-06-30 311 62 44
2017-03-31 303 50 36

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Forterra's earnings are expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
  • Forterra's revenue is expected to grow by 1.7% 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:F0T 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 10 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:F0T Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.34 0.34 0.34 1.00
2022-12-31 0.25 0.30 0.20 4.00
2021-12-31 0.24 0.27 0.19 7.00
2020-12-31 0.22 0.26 0.15 7.00
2020-04-07
DB:F0T Past Financials Data
Date (Data in GBP Millions) EPS *
2019-12-31 0.24
2019-09-30 0.25
2019-06-30 0.27
2019-03-31 0.27
2018-12-31 0.27
2018-09-30 0.25
2018-06-30 0.24
2018-03-31 0.24
2017-12-31 0.24
2017-09-30 0.23
2017-06-30 0.22
2017-03-31 0.18

*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.
  • Forterra is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
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 2/6, 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 has delivered over 20% year on year earnings growth in the past 5 years.
  • Forterra's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Forterra's 1-year earnings growth is negative, it can't be compared to the Europe Basic Materials industry average.
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:F0T Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 380.00 46.80 76.20
2019-09-30 380.55 50.20 75.50
2019-06-30 381.10 53.60 74.80
2019-03-31 374.30 53.20 73.35
2018-12-31 367.50 52.80 71.90
2018-09-30 357.90 50.55 71.60
2018-06-30 348.30 48.30 71.30
2018-03-31 339.65 47.90 70.70
2017-12-31 331.00 47.50 70.10
2017-09-30 321.10 45.65 63.00
2017-06-30 311.20 43.80 55.90
2017-03-31 302.85 35.65 57.90
2016-12-31 294.50 27.50 59.90
2016-09-30 289.95 16.65 69.80
2016-06-30 285.40 5.80 79.70
2016-03-31 287.80 11.90 76.60
2015-12-31 290.20 18.00 73.50
2014-12-31 268.07 24.16 59.57
2013-12-31 225.86 -1.55 57.47

*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.
  • Forterra has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Forterra used its assets more efficiently than the Europe Basic Materials industry average last year based on Return on Assets.
  • Forterra's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
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 3/6, 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 cash and other short term assets cover its long term commitments.
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 covered by short term assets, assets are 1.6x 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:F0T Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 156.20 69.80 26.60
2019-09-30 156.20 69.80 26.60
2019-06-30 139.50 66.70 32.20
2019-03-31 139.50 66.70 32.20
2018-12-31 134.20 64.80 26.00
2018-09-30 134.20 64.80 26.00
2018-06-30 116.90 79.80 27.90
2018-03-31 116.90 79.80 27.90
2017-12-31 104.70 89.80 29.00
2017-09-30 104.70 89.80 29.00
2017-06-30 94.90 138.70 69.30
2017-03-31 94.90 138.70 69.30
2016-12-31 69.20 148.50 56.20
2016-09-30 69.20 148.50 56.20
2016-06-30 54.10 148.10 29.10
2016-03-31 54.10 148.10 29.10
2015-12-31 -210.60 405.60 24.20
2014-12-31 -228.59 408.70 20.98
2013-12-31 214.63 2.58 13.81
  • Forterra's level of debt (44.7%) compared to net worth is high (greater than 40%).
  • Forterra had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (75.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 25.3x coverage).
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 5/6, 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
5.76%
Current annual income from Forterra dividends. Estimated to be 5.68% next year.
If you bought €2,000 of Forterra shares you are expected to receive €115 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?
  • Forterra's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.67%).
  • Forterra's dividend is above the markets top 25% of dividend payers in Germany (4.71%).
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:F0T 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 10 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:F0T Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.15 1.00
2022-12-31 0.12 5.00
2021-12-31 0.12 10.00
2020-12-31 0.11 10.00
2020-04-07
DB:F0T Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2020-03-10 0.115 5.823
2019-04-05 0.105 3.547
2019-03-12 0.105 3.571
2018-05-22 0.095 3.646
2017-04-13 0.076 2.725
2017-03-15 0.076 3.761
2016-09-07 0.040 2.220

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

  • Whilst dividend payments have been stable, Forterra has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Forterra only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Forterra's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
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 4/6, 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
Stephen Harrison
COMPENSATION £859,644
AGE 51
TENURE AS CEO 4 years
CEO Bio

Mr. Stephen Harrison has been the Chief Executive Officer at Forterra plc since April 26, 2016 has been its Executive Director since January 21, 2016. Mr. Harrison served as the Managing Director of Hanson Building Products for United Kingdom at Hanson Building Products Limited since September 2012. Prior to that, he served as Commercial Director for Hanson Building Products United Kingdom. He joined Hanson PLC in the United Kingdom in October 2002 and has held a variety of senior general management roles in Heidelberg Cement Group, Hanson Building Products United Kingdom as well as Hanson Quarry Products United Kingdom. He serves as a Principal of the Construction Products Association. He serves as a Director of the Brick Development Association and of the Aircrete Products Association. Mr. Harrison holds a B.A. degree in Economics from Kingston University, London and M.B.A. degree from Cranfield School of Management.

CEO Compensation
  • Stephen's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Stephen's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

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

1.3
Average Tenure
51
Average Age
  • The average tenure for the Forterra management team is less than 2 years, this suggests a new team.
Management Team

Stephen Harrison

TITLE
CEO & Executive Director
COMPENSATION
£860K
AGE
51
TENURE
4 yrs

Ben Guyatt

TITLE
CFO & Director
AGE
43
TENURE
0.3 yrs

George Stewart

TITLE
Operations Director
AGE
54

Ed Haslam

TITLE
Human Resources Director
TENURE
3.1 yrs

Peter Varnsverry

TITLE
Managing Director of Bison Precast
TENURE
1.3 yrs

Ashley Thompson

TITLE
Company Secretary
TENURE
0.3 yrs
Board of Directors Tenure

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

2
Average Tenure
51
Average Age
  • The average tenure for the Forterra board of directors is less than 3 years, this suggests a new board.
Board of Directors

Justin Atkinson

TITLE
Non-Executive Chairman
COMPENSATION
£68K
AGE
59
TENURE
0.9 yrs

Stephen Harrison

TITLE
CEO & Executive Director
COMPENSATION
£860K
AGE
51
TENURE
4.3 yrs

Ben Guyatt

TITLE
CFO & Director
AGE
43

Divya Seshamani

TITLE
Independent Non-Executive Director
COMPENSATION
£55K
AGE
40
TENURE
4 yrs

Robin Ker

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£58K
AGE
59
TENURE
0.9 yrs

Vince Niblett

TITLE
Independent Non-Executive Director
AGE
61
TENURE
1.2 yrs

Martin Sutherland

TITLE
Independent Non-Executive Director
COMPENSATION
£51K
AGE
49
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Forterra individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
13. Mar 20 Buy Stephen Harrison Individual 12. Mar 20 12. Mar 20 1,000 €2.99 €2,993
17. Dec 19 Sell George Stewart Individual 16. Dec 19 16. Dec 19 -4,824 €3.89 €-18,754
06. Dec 19 Sell Benjamin Guyatt Individual 03. Dec 19 03. Dec 19 -7,800 €3.39 €-26,421
03. May 19 Buy Forterra Plc, Employee Benefit Trust Company 01. May 19 01. May 19 450,000 €3.61 €1,623,235
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 plc manufactures and sells masonry products in the United Kingdom. It operates through three segments: Bricks, Blocks, and Bespoke Products. The company offers bricks; aircrete and aggregate blocks; and bespoke products comprising precast concrete flooring, concrete block paving, and chimney and roofing components, as well as other building products under the London Brick, Butterley Brick, Ecostock, Cradley, Thermalite, Conbloc, Bison Precast, Jetfloor, Red Bank, and Formpave brand names. It serves builders’ merchants, residential homebuilders, specialized brick merchants, contractors, and subcontractors. The company was incorporated in 2016 and is headquartered in Northampton, the United Kingdom.

Details
Name: Forterra plc
F0T
Exchange: DB
Founded: 2016
£452,424,983
199,306,419
Website: http://forterraplc.co.uk
Address: Forterra plc
5 Grange Park Court,
Roman Way,
Northampton,
Northamptonshire, NN4 5EA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE FORT Ordinary Shares London Stock Exchange GB GBP 21. Apr 2016
OTCPK FTTR.F Ordinary Shares Pink Sheets LLC US USD 21. Apr 2016
DB F0T Ordinary Shares Deutsche Boerse AG DE EUR 21. Apr 2016
BATS-CHIXE FORTL Ordinary Shares BATS 'Chi-X Europe' GB GBP 21. Apr 2016
Number of employees
Current staff
Staff numbers
1,940
Forterra employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 23:11
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/03/10
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.