# Foraco International SA (FAR.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Basic Materials / Metals & Mining. Price C$2.90, market value C$284 million.

## Valuation
- **P/E (trailing): 17.1×** (5-yr avg 8.6×, 3-yr avg 10.2×). Foraco International SA trades at 17.1× trailing earnings, well above its own five-year average of 8.6×: investors are paying up relative to the company's past. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 9.4×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.0×**. The shares trade at 2.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.0×**. Enterprise value is 6.0× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -2.0%** (5-yr avg 7.3%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 5.9%**. The inverse of the P/E: 5.9% of the price is earned each year.

## Profitability
- **Gross margin: 15.0%**. Foraco International SA keeps 15.0% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 8.4%**. 8.4% of revenue is left after running the business.
- **Net margin: 6.0%**. 6.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.1%**. 16.1% on shareholders' equity is solid.
- **Return on invested capital: 10.0%**. Return on all capital, debt included, is 10.0%.
- **Return on assets: 4.9%**. Each dollar of assets produces 4.9% of profit.

## Growth
- **Revenue growth (1 yr): -10.5%** (3-yr -7.4%/yr, 5-yr 4.9%/yr). Revenue fell 10.5% over the last year, against 4.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -42.9%** (3-yr -7.2%/yr, 5-yr 13.9%/yr). Earnings per share fell 42.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -54.7%/yr**. Free cash flow has compounded at -54.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.00**. Debt is 1.00 times equity, moderate leverage.
- **Net debt / EBITDA: 1.5×**. It would take 1.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 3.3×**. Operating profit covers interest 3.3× over, a safe margin.
- **Current ratio: 1.36** (quick 0.93). Current assets cover the next year's liabilities 1.36 times.
- **Altman Z-score: 3.22**. A Z-score of 3.22 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Foraco International SA does not currently pay a dividend, but it returned 0.8% of its market value through buybacks over the last year.

## Price and momentum
- **Total return (1 yr): 45.0%** (YTD 20.8%, 3-mo 1.8%). The shares are up 45.0% over twelve months including dividends.
- **From 52-week high: -18.1%** (52.6% above the low). Trading 18% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 59**. An RSI of 59 is neutral.
- **Beta (1 yr): 1.47** (volatility 44%). Beta of 1.47 against the S&P/TSX Composite: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=FAR.TO · Page: https://foliofundamentals.com/stocks/far.to

Not investment advice.