# Forterra plc (FORT.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Basic Materials / Construction Materials. Price 139p, market value 275 millionp.

## Valuation
- **P/E (trailing): 15.5×** (5-yr avg 1842.0×, 3-yr avg 2380.7×). Forterra plc trades at 15.5× trailing earnings, well below its own five-year average of 1842.0×: cheap by its own standards. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 11.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.3×**. The shares trade at 1.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.2×**. Enterprise value is 3.2× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 22.2%** (5-yr avg 0.0%). Free cash flow equals 22.2% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.5%**. The inverse of the P/E: 6.5% of the price is earned each year.

## Profitability
- **Gross margin: 31.1%**. Forterra plc keeps 31.1% of revenue after the direct cost of what it sells.
- **Operating margin: 9.2%**. 9.2% of revenue is left after running the business.
- **Net margin: 4.4%**. 4.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 7.2%**. 7.2% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 15.6%**. Return on all capital, debt included, is 15.6%: comfortably above what that capital costs.
- **Return on assets: 8.3%**. Each dollar of assets produces 8.3% of profit.

## Growth
- **Revenue growth (1 yr): 12.1%** (3-yr -5.4%/yr, 5-yr 5.7%/yr). Revenue grew 12.1% over the last year, against 5.7% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -3.3%** (3-yr -33.3%/yr). Earnings per share fell 3.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 11.6%/yr**. Free cash flow has compounded at 11.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.35**. Debt is 0.35 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 4.5×**. Operating profit covers interest 4.5× over, a safe margin.
- **Current ratio: 1.46** (quick 0.53). Current assets cover the next year's liabilities 1.46 times.
- **Altman Z-score: 3.07**. A Z-score of 3.07 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 4.20%** (0p per share, trailing). Forterra plc yields 4.20%, an income-level yield.
- **Payout ratio: 48%** (24% of free cash flow). 48% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Shareholder yield: 2.6%**. Dividends plus net buybacks return 2.6% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (9 analysts). 9 analysts cover Forterra plc; the consensus is buy, with an average price target of 193p (+38% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -24.5%** (YTD -23.4%, 3-mo 4.6%). The shares are down 24.5% over twelve months including dividends.
- **From 52-week high: -30.4%** (10.1% above the low). Trading 30% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 50**. An RSI of 50 is neutral.
- **Beta (1 yr): 1.06** (volatility 28%). Beta of 1.06 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=FORT.L · Page: https://foliofundamentals.com/stocks/fort.l

Not investment advice.