Forterra Inc. [FRTA] Revenue clocked in at $1.58 billion, up 42.47% YTD: What’s Next?

Forterra Inc. [NASDAQ: FRTA] price surged by 16.40 percent to reach at $2.32. The company report on September 11, 2020 that Forterra Announces Favorable Decision in Earnout Arbitration.

Forterra, Inc. (“Forterra” or “the Company”) (NASDAQ: FRTA), a leading manufacturer of water and drainage infrastructure pipe and products in the United States and Eastern Canada, today announced that a decision favorable to the Company has been rendered in the arbitration proceeding involving the earnout provision in the purchase agreement relating to the 2015 acquisition of certain businesses now owned by the Company from HeidelbergCement, A.G. (“Heidelberg”). A neutral accounting arbitrator engaged by the parties rendered a written decision on September 10, 2020 in which he determined that no earnout payment was due under the terms of the purchase agreement. In the proceeding, Heidelberg had sought an earnout payment of the maximum amount of $100 million from the parties that had entered into the purchase agreement with Heidelberg.

Forterra’s CEO Karl Watson, Jr. commented, “We are pleased with the ruling from the arbitrator, as we have consistently held the view that no earnout payment was owed in this matter. We look forward to moving on from this and continuing to execute on our five improvement pillars which have created significant momentum over the past several quarters. Comparing our recent second quarter 2020 results to the second quarter of 2019, in each case on a last twelve-month basis, we have increased our sales by 7%, gross profit by 26%, improved from a net loss of $34 million to net income of $28 million, and improved Adjusted EBITDA1 by 37%, with Adjusted EBITDA margin1 increasing from 12.0% to 15.3%.”.

A sum of 1671916 shares traded at recent session while its average daily volume was at 296.97K shares. Forterra Inc. shares reached a high of $16.7999 and dropped to a low of $14.50 until finishing in the latest session at $16.47.

The one-year FRTA stock forecast points to a potential downside of -2.94. The average equity rating for FRTA stock is currently 2.60, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Forterra Inc. [FRTA]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for FRTA shares is $16.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on FRTA stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

SunTrust have made an estimate for Forterra Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 01, 2020. The new note on the price target was released on February 13, 2020, representing the official price target for Forterra Inc. stock.

The Average True Range (ATR) for Forterra Inc. is set at 0.90, with the Price to Sales ratio for FRTA stock in the period of the last 12 months amounting to 0.58. The Price to Book ratio for the last quarter was 7.92, with the Price to Cash per share for the same quarter was set at 0.94. Price to Free Cash Flow for FRTA in the course of the last twelve months was 4.97 with Quick ratio for the last quarter at 1.30.

FRTA Stock Performance Analysis:

Forterra Inc. [FRTA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 20.57. With this latest performance, FRTA shares gained by 6.19% in over the last four-week period, additionally plugging by 109.81% over the last 6 months – not to mention a rise of 126.24% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for FRTA stock in for the last two-week period is set at 69.24, with the RSI for the last a single of trading hit 74.71, and the three-weeks RSI is set at 66.15 for Forterra Inc. [FRTA]. The present Moving Average for the last 50 days of trading for this stock 13.56, while it was recorded at 14.29 for the last single week of trading, and 10.93 for the last 200 days.

Insight into Forterra Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Forterra Inc. [FRTA] shares currently have an operating margin of +4.89 and a Gross Margin at +16.28. Forterra Inc.’s Net Margin is presently recorded at -0.48.

Return on Total Capital for FRTA is now 5.19, given the latest momentum, and Return on Invested Capital for the company is -0.52. Return on Equity for this stock declined to -6.40, with Return on Assets sitting at -0.40. When it comes to the capital structure of this company, Forterra Inc. [FRTA] has a Total Debt to Total Equity ratio set at 1,087.41. Additionally, FRTA Total Debt to Total Capital is recorded at 91.58, with Total Debt to Total Assets ending up at 72.41. Long-Term Debt to Equity for the company is recorded at 1,056.13, with the Long-Term Debt to Total Capital now at 88.94.

Reflecting on the efficiency of the workforce at the company, Forterra Inc. [FRTA] managed to generate an average of -$1,601 per employee. Receivables Turnover for the company is 7.57 with a Total Asset Turnover recorded at a value of 0.84.Forterra Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 2.30.


With the latest financial reports released by the company, Forterra Inc. posted 0.35/share EPS, while the average EPS was predicted by analysts to be reported at 0.12/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 191.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for FRTA.

Forterra Inc. [FRTA] Insider Position Details

There are presently around $1,041 million, or 98.10% of FRTA stock, in the hands of institutional investors. The top three institutional holders of FRTA stocks are: LONE STAR GLOBAL ACQUISITIONS, LTD. with ownership of 45,107,250, which is approximately 0% of the company’s market cap and around 0.70% of the total institutional ownership; ELECTRON CAPITAL PARTNERS, LLC, holding 3,338,207 shares of the stock with an approximate value of $54.98 million in FRTA stocks shares; and PARADIGM CAPITAL MANAGEMENT INC/NY, currently with $26.64 million in FRTA stock with ownership of nearly 3.68% of the company’s market capitalization.

Positions in Forterra Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 49 institutional holders increased their position in Forterra Inc. [NASDAQ:FRTA] by around 3,058,532 shares. Additionally, 53 investors decreased positions by around 2,077,222 shares, while 11 investors held positions by with 58,077,462 shares. The mentioned changes placed institutional holdings at 63,213,216 shares, according to the latest SEC report filing. FRTA stock had 15 new institutional investments in for a total of 1,184,194 shares, while 16 institutional investors sold positions of 466,211 shares during the same period.

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