Fortrea Holdings Inc.

Health Care
Medical Specialities
www.fortrea.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.94B
PE -6
Debt $1.12B
Cash $105.30M
EV $2.96B
FCF $220.00M

Earnings

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Sales & Net Margins

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Earnings	-$303.30M
EBIT	-$117.00M
ROE	-20%
ROA	-3%
FCF	$220.00M
Equity	$1.51B
Growth Stability	1
PE	-6.39
PEG	2.47
PB	1.28
P/FCF	8.81
P/S	0.7
Price/Cash	0.05
Debt/Equity	0.74
Debt/FCF	5.11
Net Margins	-13%
Gross Margins	18%
Op. Margins	-4%
Earnings CAGR	-3%
Sales Growth YoY	-13%
Sales Growth QoQ	2%
Sales CAGR	-4%
FCF CAGR	79%
Equity CAGR	-31%
Earnings Stability	-1.02
Earnings Growth YoY	113%
Earnings Growth QoQ	-80%

Earnings CAGR 5Y	-3%
Sales CAGR 5Y	-4%
FCF CAGR 5Y	79%
Equity CAGR 5Y	-31%
Earnings CAGR 3Y	-4%
Sales CAGR 3Y	-4%
FCF CAGR 3Y	79%
Equity CAGR 3Y	-31%
Market Cap	$1.94B
Revenue	$2.77B
Assets	$3.66B
Total Debt	$1.12B
Cash	$105.30M
Shares Outstanding	89.4M
EV	2.96B
Earnings Score	6%
Moat Score	5%
Safety Score	85%
Final Score	32%
Working Capital	141.1M
Current Ratio	1.18
Gross Profit	$513.00M
Shares Growth 3y	0%
Equity Growth QoQ	4%
Equity Growth YoY	-11%

Assets & ROA

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Stockholders Equity & ROE

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Fortrea Holdings Inc. provides clinical development and patient access solutions to the life sciences industry. It offers phase I-IV clinical trial management, clinical pharmacology, differentiated technology enabled trial solutions, and post approval services. The company serves pharmaceutical, biotechnology, and medical device organizations. Fortrea Holdings Inc. is based in Durham, North Carolina.

SEC Filings

Direct access to Fortrea Holdings Inc. (FTRE) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30

Sector Comparison

How does Fortrea Holdings Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Fortrea Holdings Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -3%

Stability -102%

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Fortrea Holdings Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Fortrea Holdings Inc..

Years

Calculation mode

= $352B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$220M	$393M	$701M	$1.3B	$2.2B	$4B	$7.1B	$13B	$23B	$41B	$73B	$725B
DCF		$357M	$580M	$941M	$1.5B	$2.5B	$4B	$6.5B	$11B	$17B	$28B	$280B
Value	$352B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2021	12/2022	12/2023	TTM
Net Margins	3%	6%	-0%	-13%
ROA	-	6%	1%	-3%
ROE	-	6%	-0%	-20%

Bad Net Margins (-13.37%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0	12.99	5.11
Debt over Equity	-	0	0.95	0.74
Growth Stability	-	-	-	1

Bad Debt/FCF ratio (5.11)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.74)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	1%	0%	-4%
Earnings YoY growth	-	97%	-102%	-3%
Equity YoY growth	-	3%	-48%	-31%
FCF YoY growth	-	-77%	284%	79%