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Fortrea Holdings Inc FTRE

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Stock XNAS Rating as of
$26.92 +0.70 (2.67%)
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Company Report

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Positive Long-Term Outlook Despite Near-Term Headwinds for Narrow-Moat Fortrea

Rachel Elfman

Fortrea is a global, late-stage contract research organization, or CRO, that provides comprehensive Phase I through IV clinical trial management, clinical pharmacology, and patient access solutions. Fortrea has a lengthy, 30-year history dating to the 1990s, originally part of Corning Incorporated's pharmaceutical services business. In 1997, Corning spun off this segment, which was named Covance. In 2015, Laboratory Corporation of America Holdings, or LabCorp, acquired Covance for $6.1 billion.

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Price vs Fair Value

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FTRE is trading at a 596% premium.
Price
$26.92
Fair Value
$94.50
Uncertainty
High
1-Star Price
$49.36
5-Star Price
$64.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Fortrea is poised to benefit from steadily increasing levels of outsourced clinical trials and complex novel therapeutics, such as biologics and gene therapies.

Bears

There are potential operational risks associated with Fortrea functioning as a newly independent company post its spinoff from LabCorp.

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News

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Trading Information

Previous Close Price
$26.22
Day Range
$26.09–27.29
52-Week Range
$22.15–41.02
Bid/Ask
$25.34 / $29.35
Market Cap
$2.41 Bil
Volume/Avg
976,435 / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
28.80
Price/Sales
0.80
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Fortrea Holdings is a late-stage contract research organization, or CRO, that provides comprehensive Phase I through IV clinical trial management, clinical pharmacology, and patient access solutions. The company works with emerging and large biopharma, medical device, and diagnostic companies to run their clinical trials as a functional-service provider, full-service provider, and offers hybrid trials. In 2023, Fortrea was formed as an independent, publicly traded company after LabCorp spun off its clinical development business, which it acquired via its purchase of Covance in 2015 for $6.1 billion. Fortrea has 19,000 staff members across 90 countries.
Sector
Healthcare
Industry
Biotechnology
Stock Style Box
Small Core
Total Number of Employees
16,000
Website
https://www.fortrea.com

Competitors

Valuation

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Metric
FTRE
IQV
MEDP
Price/Earnings (Normalized)
 28.8022.8135.89
Price/Book Value
 1.516.5115.49
Price/Sales
 0.802.926.00
Price/Cash Flow
 80.6717.7931.66
Price/Earnings
FTRE
IQV
MEDP

Financial Strength

Metric
FTRE
IQV
MEDP
Quick Ratio
 1.260.750.82
Current Ratio
 1.470.850.88
Interest Coverage
 0.083.10—
Quick Ratio
FTRE
IQV
MEDP

Profitability

Metric
FTRE
IQV
MEDP
Return on Assets (Normalized)
 −0.91%7.37%21.49%
Return on Equity (Normalized)
 −2.29%31.57%62.19%
Return on Invested Capital (Normalized)
 1.26%12.80%47.95%
Return on Assets
FTRE
IQV
MEDP
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