(FTRE) Fortrea Holdings - NASDAQ
Sector: Healthcare | Industry: Biotechnology | Exchange: NASDAQ (USA) | Market Cap: 1.557m USD | Total Return: 241.6% in 12m
Avg Turnover: 23.0M
Qual. Beats: -1
Rev. Trend: -16.9%
Qual. Beats: 0
Warnings
Interest Coverage Ratio -4.1 is critical
Altman Z'' -2.40 < 1.0 - financial distress zone
Tailwinds
Rs Leader, Idiosyncratic Leader, Tailwind
Fortrea Holdings Inc. is a contract research organization (CRO) that provides biopharmaceutical product and medical device development solutions to pharmaceutical, biotechnology, and medical device customers worldwide. The company offers a comprehensive suite of services spanning clinical pharmacology, full-phase clinical development (Phase I-IV), real-world evidence studies, regulatory affairs, bioanalytics, pharmacovigilance, and consulting services covering product development, market access, and outcomes research. Incorporated in 2023 and headquartered in Durham, North Carolina, Fortrea operates within the Health Care sector (Life Sciences Tools & Services sub-industry) and went public on NASDAQ in July 2023.
- Biotech funding weakness increases trial cancellations and delays
- Restructuring charges and transition costs pressure near-term margins
- Competition from IQVIA and ICON compresses pricing power
| Net Income: -446.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 2.45 > 1.0 |
| NWC/Revenue: -1.76% < 20% (prev -1.07%; Δ -0.68% < -1%) |
| CFO/TA 0.08 > 3% & CFO 220.7m > Net Income -446.9m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 0.95 > 1.5 & < 3 |
| Outstanding Shares: last quarter (91.2m) vs 12m ago 2.01% < -2% |
| Gross Margin: 15.97% > 18% (prev 20.21%; Δ -4.24% > 0.5%) |
| Asset Turnover: 93.33% > 50% (prev 86.05%; Δ 7.28% > 0%) |
| Interest Coverage Ratio: -4.09 > 6 (EBIT TTM -359.4m / Interest Expense TTM 87.9m) |
| A: -0.02 (Total Current Assets 881.5m - Total Current Liabilities 929.1m) / Total Assets 2.68b |
| B: -0.52 (Retained Earnings -1.41b / Total Assets 2.68b) |
| C: -0.12 (EBIT TTM -359.4m / Avg Total Assets 2.90b) |
| D: 0.24 (Book Value of Equity 525.9m / Total Liabilities 2.16b) |
| Altman-Z'' = -2.40 = D |
| DSRI: 0.84 (Receivables 619.6m/729.0m, Revenue 2.71b/2.69b) |
| GMI: 1.27 (GM 20.21% / 15.97%) |
| AQI: 0.96 (AQ_t 0.61 / AQ_t-1 0.64) |
| SGI: 1.01 (Revenue 2.71b / 2.69b) |
| TATA: -0.25 (NI -446.9m - CFO 220.7m) / TA 2.68b) |
| Beneish M = -2.96 (Cap -4..+1) = A |
As of June 27, 2026, the stock is trading at USD 17.65 with a total of 3,269,169 shares traded. Over the past week, the price has changed by +15.60%, over one month by +33.96%, over three months by +87.61% and over the past year by +241.56%.
Current recommended Stop Loss: 16.40 (which is 7.1% or 1.2 ATR below the current price).
Fortrea Holdings has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold FTRE.
- StrongBuy: 0
- Buy: 1
- Hold: 10
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 16.2 | -8.2% |
P/E Forward = 12.8535
P/S = 0.5748
P/B = 2.9604
P/EG = 0.3442
Revenue TTM = 2.71b USD
EBIT TTM = -359.4m USD
EBITDA TTM = -281.1m USD
Long Term Debt = 1.04b USD (from longTermDebt, last quarter)
Short Term Debt = 19.7m USD (from shortTermDebt, last quarter)
Debt = 1.18b USD (from shortLongTermDebtTotal, last quarter) + Leases 64.5m
Net Debt = 1.03b USD (calculated: Debt 1.18b - CCE 147.5m)
Enterprise Value = 2.59b USD (1.56b + Debt 1.18b - CCE 147.5m)
Interest Coverage Ratio = -4.09 (Ebit TTM -359.4m / Interest Expense TTM 87.9m)
EV/FCF = 13.61x (Enterprise Value 2.59b / FCF TTM 190.4m)
FCF Yield = 7.35% (FCF TTM 190.4m / Enterprise Value 2.59b)
FCF Margin = 7.03% (FCF TTM 190.4m / Revenue TTM 2.71b)
Net Margin = -16.50% (Net Income TTM -446.9m / Revenue TTM 2.71b)
Gross Margin = 15.97% ((Revenue TTM 2.71b - Cost of Revenue TTM 2.28b) / Revenue TTM)
Gross Margin QoQ = 16.31% (prev 16.93%)
Tobins Q-Ratio = 0.97 (Enterprise Value 2.59b / Total Assets 2.68b)
Interest Expense / Debt = 7.43% (Interest Expense 87.9m / Debt 1.18b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -283.9m (EBIT -359.4m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.95 (Total Current Assets 881.5m / Total Current Liabilities 929.1m)
Debt / Equity = 2.25 (Debt 1.18b / totalStockholderEquity, last quarter 525.9m)
Debt / EBITDA = -3.68 (negative EBITDA) (Net Debt 1.03b / EBITDA -281.1m)
Debt / FCF = 5.44 (Net Debt 1.03b / FCF TTM 190.4m)
Total Stockholder Equity = 564.9m (last 4 quarters mean from totalStockholderEquity)
RoA = -15.40% (Net Income -446.9m / Total Assets 2.68b)
RoE = -79.12% (Net Income TTM -446.9m / Total Stockholder Equity 564.9m)
RoCE = -22.36% (EBIT -359.4m / Capital Employed (Equity 564.9m + L.T.Debt 1.04b))
RoIC = -17.33% (negative operating profit) (NOPAT -283.9m / Invested Capital 1.64b)
WACC = 9.77% (E(1.56b)/V(2.74b) * Re(12.73%) + D(1.18b)/V(2.74b) * Rd(7.43%) * (1-Tc(0.21)))
Discount Rate = 12.73% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 84.85 | Cagr: 1.70%
[DCF] Terminal Value 73.52% ; FCFF base≈172.3m ; Y1≈197.5m ; Y5≈290.7m
[DCF] Fair Price = 26.04 (EV 3.50b - Net Debt 1.03b = Equity 2.46b / Shares 94.6m; r=9.77% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -4.0 | # QB: -1
Revenue Correlation: -16.89 | Revenue CAGR: -0.55% | SUE: 0.20 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.18 | Chg30d=+1.79% | Revisions=+0% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.21 | Chg30d=+0.58% | Revisions=+9% | Analysts=10
EPS current Year (2026-12-31): EPS=0.81 | Chg30d=-0.87% | Revisions=+57% | GrowthEPS=+87.5% | GrowthRev=-4.3%
EPS next Year (2027-12-31): EPS=1.08 | Chg30d=+1.62% | Revisions=+43% | GrowthEPS=+33.5% | GrowthRev=+3.3%
[Analyst] Revisions Ratio: +57%