FORTREA HOLDINGS INC (FTRE)
US34965K1079 - Common Stock
Taking everything into account, FTRE scores 2 out of 10 in our fundamental rating. FTRE was compared to 59 industry peers in the Life Sciences Tools & Services industry. Both the profitability and financial health of FTRE have multiple concerns. FTRE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FTRE had negative earnings in the past year.
In the past year FTRE had a positive cash flow from operations.
1.2 Ratios
FTRE has a better Return On Assets (-2.87%) than 62.07% of its industry peers.
FTRE has a Return On Equity of -7.65%. This is in the better half of the industry: FTRE outperforms 62.07% of its industry peers.
The Return On Invested Capital of FTRE (0.60%) is better than 68.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTRE is significantly below the industry average of 11.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.87% | ||
| ROE | -7.65% | ||
| ROIC | 0.6% |
ROA(3y)2.22%
ROA(5y)N/A
ROE(3y)2.86%
ROE(5y)N/A
ROIC(3y)3.68%
ROIC(5y)N/A
1.3 Margins
With a decent Operating Margin value of 0.87%, FTRE is doing good in the industry, outperforming 68.97% of the companies in the same industry.
FTRE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 16.64%, FTRE is doing worse than 87.93% of the companies in the same industry.
In the last couple of years the Gross Margin of FTRE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.87% | ||
| PM (TTM) | N/A | ||
| GM | 16.64% |
OM growth 3Y-10.89%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.06%
GM growth 5YN/A
2. Health
2.1 Basic Checks
FTRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FTRE has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, FTRE has a worse debt to assets ratio.
2.2 Solvency
FTRE has an Altman-Z score of 1.26. This is a bad value and indicates that FTRE is not financially healthy and even has some risk of bankruptcy.
FTRE has a Altman-Z score (1.26) which is in line with its industry peers.
The Debt to FCF ratio of FTRE is 15.38, which is on the high side as it means it would take FTRE, 15.38 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FTRE (15.38) is better than 62.07% of its industry peers.
FTRE has a Debt/Equity ratio of 0.98. This is a neutral value indicating FTRE is somewhat dependend on debt financing.
FTRE's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. FTRE is outperformed by 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.38 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.05
WACC11.84%
2.3 Liquidity
FTRE has a Current Ratio of 1.47. This is a normal value and indicates that FTRE is financially healthy and should not expect problems in meeting its short term obligations.
FTRE's Current ratio of 1.47 is on the low side compared to the rest of the industry. FTRE is outperformed by 86.21% of its industry peers.
FTRE has a Quick Ratio of 1.47. This is a normal value and indicates that FTRE is financially healthy and should not expect problems in meeting its short term obligations.
FTRE has a Quick ratio of 1.47. This is in the lower half of the industry: FTRE underperforms 67.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for FTRE have decreased strongly by -101.76% in the last year.
Looking at the last year, FTRE shows a small growth in Revenue. The Revenue has grown by 0.42% in the last year.
Measured over the past years, FTRE shows a small growth in Revenue. The Revenue has been growing by 6.41% on average per year.
EPS 1Y (TTM)-101.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-675.39%
Revenue 1Y (TTM)0.42%
Revenue growth 3Y6.41%
Revenue growth 5YN/A
Sales Q2Q%-13.36%
3.2 Future
FTRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.96% yearly.
Based on estimates for the next years, FTRE will show a small growth in Revenue. The Revenue will grow by 3.09% on average per year.
EPS Next Y-44.06%
EPS Next 2Y11.64%
EPS Next 3Y17.6%
EPS Next 5Y23.96%
Revenue Next Year-9.99%
Revenue Next 2Y-3.01%
Revenue Next 3Y0.27%
Revenue Next 5Y3.09%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FTRE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 14.18 indicates a correct valuation of FTRE.
FTRE's Price/Forward Earnings ratio is rather cheap when compared to the industry. FTRE is cheaper than 96.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FTRE to the average of the S&P500 Index (20.15), we can say FTRE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.18 |
4.2 Price Multiples
FTRE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTRE is cheaper than 70.69% of the companies in the same industry.
94.83% of the companies in the same industry are more expensive than FTRE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.98 | ||
| EV/EBITDA | 29.38 |
4.3 Compensation for Growth
FTRE's earnings are expected to grow with 17.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.64%
EPS Next 3Y17.6%
5. Dividend
5.1 Amount
FTRE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FORTREA HOLDINGS INC
NASDAQ:FTRE (7/3/2024, 7:08:44 PM)
After market: 23.47 0 (0%)23.47
-0.33 (-1.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.87% | ||
| ROE | -7.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.87% | ||
| PM (TTM) | N/A | ||
| GM | 16.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-101.76%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-44.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.42%
Revenue growth 3Y6.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y