Fortrea Holdings Inc. (NASDAQ: FTRE)

Sector: Healthcare Industry: Biotechnology CIK: 0001965040
Market Cap 1.57 Bn
P/B 2.71
P/E -1.55
P/S 0.57
ROIC (Qtr) -28.16
Div Yield % 0.00
Rev 1y % (Qtr) 3.91
Total Debt (Qtr) 1.19 Bn
Debt/Equity (Qtr) 2.04

About

Price action

Investment thesis

Bull case

  • Cash reserves of 131.30M provide ample 3.32x coverage of acquisition spending 39.60M, enabling strategic growth opportunities.
  • Robust tangible asset base of 1.15B provides 280.15x coverage of working capital 4.10M, indicating strong operational backing.
  • Cash position of 131.30M represents healthy 32.02x of working capital 4.10M, demonstrating strong operational liquidity.
  • Strong tangible asset base of 1.15B provides 29.01x coverage of acquisition spending 39.60M, enabling strategic growth.
  • Cash position of 131.30M fully covers payables of 49.50M by 2.65x, showing strong vendor relationship management.

Bear case

  • Operating cash flow of 1.50M barely covers its investment activities of 25.40M, with a coverage ratio of 0.06, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.50M provides insufficient coverage of deferred revenue obligations of 411.60M, which is 0x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 1.50M shows concerning coverage of stock compensation expenses of 74.90M, with a 0.02 ratio indicating potential earnings quality issues.
  • Free cash flow of (12.70M) provides weak coverage of capital expenditures of 14.20M, with a -0.89 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (919.50M) show weak coverage of depreciation charges of 91.30M, with a -10.07 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.00 12.96
EV to Cash from Ops. EV/CFO 1,823.01 23.73
EV to Debt EV to Debt 2.30 772.65
EV to EBIT EV/EBIT -2.97 -11.30
EV to EBITDA EV/EBITDA -3.32 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -215.32 22.12
EV to Market Cap EV to Market Cap 1.74 68.89
EV to Revenue EV/Rev 0.99 199.70
Price to Book Value [P/B] P/B 2.71 22.62
Price to Earnings [P/E] P/E -1.55 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.15
Interest Coverage Int. cover (Qtr) -10.21 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 62.13 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 24.69 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -389.19 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3,559.11 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -373.97 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -205.57 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -211.36 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -105.60 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.19 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.01 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.14 3.79
Current Ratio Curr Ratio (Qtr) 1.00 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 2.04 0.42
Interest Cover Ratio Int Coverage (Qtr) -10.21 857.11
Times Interest Earned Times Interest Earned (Qtr) -10.21 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -30.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -33.32 -18,862.18
EBT Margin % EBT Margin % (Qtr) -36.58 -19,783.19
Gross Margin % Gross Margin % (Qtr) 18.60 -8.62
Net Profit Margin % Net Margin % (Qtr) -36.80 -19,732.60