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FORTREA HOLDINGS INC (FTRE) Stock Fundamental Analysis

NASDAQ:FTRE - Nasdaq - US34965K1079 - Common Stock - Currency: USD

5.5  +0.3 (+5.77%)

After market: 5.5 0 (0%)

Fundamental Rating

3

Overall FTRE gets a fundamental rating of 3 out of 10. We evaluated FTRE against 55 industry peers in the Life Sciences Tools & Services industry. Both the profitability and financial health of FTRE have multiple concerns. FTRE has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

FTRE had positive earnings in the past year.
FTRE had a positive operating cash flow in the past year.
In multiple years FTRE reported negative net income over the last 5 years.
In the past 5 years FTRE always reported a positive cash flow from operatings.
FTRE Yearly Net Income VS EBIT VS OCF VS FCFFTRE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 2024 0 200M -200M

1.2 Ratios

With a Return On Assets value of -9.18%, FTRE perfoms like the industry average, outperforming 56.36% of the companies in the same industry.
FTRE has a Return On Equity (-24.11%) which is in line with its industry peers.
Industry RankSector Rank
ROA -9.18%
ROE -24.11%
ROIC N/A
ROA(3y)-1.75%
ROA(5y)-2.26%
ROE(3y)-6.6%
ROE(5y)-5.54%
ROIC(3y)N/A
ROIC(5y)N/A
FTRE Yearly ROA, ROE, ROICFTRE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 0 -10 -20

1.3 Margins

The Gross Margin of FTRE (19.81%) is worse than 81.82% of its industry peers.
In the last couple of years the Gross Margin of FTRE has remained more or less at the same level.
FTRE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 19.81%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.07%
GM growth 5YN/A
FTRE Yearly Profit, Operating, Gross MarginsFTRE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 0 10 -10 20

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2

2. Health

2.1 Basic Checks

FTRE does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, FTRE has more shares outstanding
Compared to 1 year ago, FTRE has an improved debt to assets ratio.
FTRE Yearly Shares OutstandingFTRE Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 20M 40M 60M 80M
FTRE Yearly Total Debt VS Total AssetsFTRE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of 0.62, we must say that FTRE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.62, FTRE is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
FTRE has a debt to FCF ratio of 4.74. This is a neutral value as FTRE would need 4.74 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.74, FTRE is doing good in the industry, outperforming 67.27% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that FTRE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, FTRE is doing worse than 74.55% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 4.74
Altman-Z 0.62
ROIC/WACCN/A
WACC7.18%
FTRE Yearly LT Debt VS Equity VS FCFFTRE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.00 indicates that FTRE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, FTRE is doing worse than 85.45% of the companies in the same industry.
FTRE has a Quick Ratio of 1.00. This is a bad value and indicates that FTRE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.00, FTRE is doing worse than 78.18% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 1
FTRE Yearly Current Assets VS Current LiabilitesFTRE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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3

3. Growth

3.1 Past

The earnings per share for FTRE have decreased strongly by -9582.54% in the last year.
Looking at the last year, FTRE shows a very negative growth in Revenue. The Revenue has decreased by -13.27% in the last year.
Measured over the past years, FTRE shows a decrease in Revenue. The Revenue has been decreasing by -4.10% on average per year.
EPS 1Y (TTM)-9582.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-5.26%
Revenue 1Y (TTM)-13.27%
Revenue growth 3Y-4.1%
Revenue growth 5YN/A
Sales Q2Q%-10.11%

3.2 Future

Based on estimates for the next years, FTRE will show a very strong growth in Earnings Per Share. The EPS will grow by 50.34% on average per year.
FTRE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.13% yearly.
EPS Next Y33.53%
EPS Next 2Y55.88%
EPS Next 3Y61.42%
EPS Next 5Y50.34%
Revenue Next Year-7.65%
Revenue Next 2Y-2.29%
Revenue Next 3Y0.68%
Revenue Next 5Y3.13%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
FTRE Yearly Revenue VS EstimatesFTRE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B 4B
FTRE Yearly EPS VS EstimatesFTRE Yearly EPS VS EstimatesYearly EPS VS Estimates 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5 2 2.5

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7

4. Valuation

4.1 Price/Earnings Ratio

FTRE is valuated correctly with a Price/Earnings ratio of 16.18.
Based on the Price/Earnings ratio, FTRE is valued cheaper than 85.45% of the companies in the same industry.
When comparing the Price/Earnings ratio of FTRE to the average of the S&P500 Index (28.33), we can say FTRE is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.11, which indicates a correct valuation of FTRE.
FTRE's Price/Forward Earnings ratio is rather cheap when compared to the industry. FTRE is cheaper than 94.55% of the companies in the same industry.
FTRE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.18
Fwd PE 12.11
FTRE Price Earnings VS Forward Price EarningsFTRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, FTRE is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 2.09
EV/EBITDA N/A
FTRE Per share dataFTRE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

FTRE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FTRE's earnings are expected to grow with 61.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y55.88%
EPS Next 3Y61.42%

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0

5. Dividend

5.1 Amount

FTRE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FORTREA HOLDINGS INC

NASDAQ:FTRE (4/22/2025, 8:07:20 PM)

After market: 5.5 0 (0%)

5.5

+0.3 (+5.77%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)03-03 2025-03-03/bmo
Earnings (Next)05-12 2025-05-12/bmo
Inst Owners106.26%
Inst Owner Change1.49%
Ins Owners0.32%
Ins Owner Change13.92%
Market Cap496.10M
Analysts52.5
Price Target11.63 (111.45%)
Short Float %7.72%
Short Ratio4.34
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.76%
Min EPS beat(2)-51.68%
Max EPS beat(2)-9.84%
EPS beat(4)0
Avg EPS beat(4)-201.22%
Min EPS beat(4)-608.63%
Max EPS beat(4)-9.84%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)-1.96%
Revenue beat(4)0
Avg Revenue beat(4)-6.13%
Min Revenue beat(4)-13.98%
Max Revenue beat(4)-1.96%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-47.47%
PT rev (3m)-50.22%
EPS NQ rev (1m)-133.63%
EPS NQ rev (3m)-131.39%
EPS NY rev (1m)-65.6%
EPS NY rev (3m)-66.91%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-8.53%
Revenue NY rev (1m)-3.71%
Revenue NY rev (3m)-8.68%
Valuation
Industry RankSector Rank
PE 16.18
Fwd PE 12.11
P/S 0.18
P/FCF 2.09
P/OCF 1.89
P/B 0.36
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.34
EY6.18%
EPS(NY)0.45
Fwd EY8.25%
FCF(TTM)2.63
FCFY47.83%
OCF(TTM)2.91
OCFY52.97%
SpS29.89
BVpS15.1
TBVpS-11.13
PEG (NY)0.48
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -9.18%
ROE -24.11%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 19.81%
FCFM 8.8%
ROA(3y)-1.75%
ROA(5y)-2.26%
ROE(3y)-6.6%
ROE(5y)-5.54%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.07%
GM growth 5YN/A
F-Score5
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 4.74
Debt/EBITDA N/A
Cap/Depr 29.34%
Cap/Sales 0.95%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1
Quick Ratio 1
Altman-Z 0.62
F-Score5
WACC7.18%
ROIC/WACCN/A
Cap/Depr(3y)43.05%
Cap/Depr(5y)33.05%
Cap/Sales(3y)1.37%
Cap/Sales(5y)1.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9582.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-5.26%
EPS Next Y33.53%
EPS Next 2Y55.88%
EPS Next 3Y61.42%
EPS Next 5Y50.34%
Revenue 1Y (TTM)-13.27%
Revenue growth 3Y-4.1%
Revenue growth 5YN/A
Sales Q2Q%-10.11%
Revenue Next Year-7.65%
Revenue Next 2Y-2.29%
Revenue Next 3Y0.68%
Revenue Next 5Y3.13%
EBIT growth 1Y-227.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year4.17%
EBIT Next 3Y11.58%
EBIT Next 5Y12.15%
FCF growth 1Y85.25%
FCF growth 3Y18.31%
FCF growth 5YN/A
OCF growth 1Y56.06%
OCF growth 3Y15.67%
OCF growth 5YN/A