FTRE Stock Analysis: Fortrea Holdings | NASDAQ
Biotechnology | NASDAQ, USA | Market Cap: 2.163m USD | 12M Return: 131.6% | US34965K1079 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 32.7M
Qual. Beats: 0
Rev. Trend: -42.5%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 3.3 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Fortrea Holdings Inc. (NASDAQ: FTRE) is a contract research organization (CRO) that provides outsourced biopharmaceutical and medical device development services to pharmaceutical, biotechnology, and medical device customers worldwide. The company was incorporated in 2023 and is headquartered in Durham, North Carolina.
The companys service portfolio spans clinical pharmacology (including bioanalytics, pharmacokinetics, modeling and simulation, and biometrics), clinical development (covering Phase I–IV trials, real-world evidence studies, regulatory affairs, patient recruitment, data management and biostatistics, pharmacovigilance, and medical writing), and consulting services such as product development and regulatory support, market access and health economics, outcomes research, and real-world evidence services.
As a CRO, Fortrea operates in the contract research services segment of the life sciences tools and services industry, serving as an outsourced partner that helps sponsors design, run, and analyze clinical trials and post-market studies. The CRO model allows drug and device developers to leverage specialized external expertise, infrastructure, and global site networks rather than conducting all development activities in-house.
- Clinical services bookings decline as biotech R&D spending tightens
- Margin recovery lags as standalone costs persist post spin-off
- Competition from IQVIA and ICON pressures contract pricing
| Net Income: -85.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 9.18 > 1.0 |
| NWC/Revenue: -1.50% < 20% (prev 0.65%; Δ -2.15% < -1%) |
| CFO/TA 0.07 > 3% & CFO 182.4m > Net Income -85.2m |
| Net Debt (1.01b) to EBITDA (81.2m): 12.46 < 3 |
| Current Ratio: 0.96 > 1.5 & < 3 |
| Outstanding Shares: last quarter (94.3m) vs 12m ago 4.07% < -2% |
| Gross Margin: 17.11% > 18% (prev 19.01%; Δ -1.90% > 0.5%) |
| Asset Turnover: 96.45% > 50% (prev 96.42%; Δ 0.03% > 0%) |
| Interest Coverage Ratio: 0.03 > 6 (EBIT TTM 2.90m / Interest Expense TTM 84.0m) |
| A: -0.01 (Total Current Assets 923.6m - Total Current Liabilities 963.7m) / Total Assets 2.71b |
| B: -0.52 (Retained Earnings -1.42b / Total Assets 2.71b) |
| C: 0.00 (EBIT TTM 2.90m / Avg Total Assets 2.77b) |
| D: 0.24 (Book Value of Equity 524.2m / Total Liabilities 2.19b) |
| Altman-Z'' = -1.54 = D |
| DSRI: 0.90 (Receivables 654.4m/739.2m, Revenue 2.68b/2.73b) |
| GMI: 1.11 (GM 19.01% / 17.11%) |
| AQI: 0.99 (AQ_t 0.60 / AQ_t-1 0.61) |
| SGI: 0.98 (Revenue 2.68b / 2.73b) |
| TATA: -0.10 (NI -85.2m - CFO 182.4m) / TA 2.71b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of October 22, 2026, the stock is trading at USD 24.06 with a total of 2,446,127 shares traded. Over the past week, the price has changed by +12.75%, over one month by +20.18%, over three months by +34.34% and over the past year by +131.57%.
Current recommended Stop Loss: 22.70 (which is 5.7% or 1.2 ATR below the current price).
Fortrea Holdings has received a consensus analysts rating of 3.69. Therefore, it is recommended to hold FTRE.
- StrongBuy: 5
- Buy: 1
- Hold: 5
- Sell: 2
- StrongSell: 0
| Analysts Target Price | 21.5 | -10.8% |
P/E Forward = 12.1359
P/S = 0.8082
P/B = 3.5431
P/EG = 0.3442
Revenue TTM = 2.68b USD
EBIT TTM = 2.90m USD
EBITDA TTM = 81.2m USD
Long Term Debt = 1.04b USD (from longTermDebt, last quarter)
Short Term Debt = 26.0m USD (from shortTermDebt, last quarter)
Debt = 1.18b USD (from shortLongTermDebtTotal, last quarter) + Leases 63.2m
Net Debt = 1.01b USD (calculated: Debt 1.18b - CCE 168.6m)
Enterprise Value = 3.18b USD (2.16b + Debt 1.18b - CCE 168.6m)
Interest Coverage Ratio = 0.03 (Ebit TTM 2.90m / Interest Expense TTM 84.0m)
EV/FCF = 21.08x (Enterprise Value 3.18b / FCF TTM 150.6m)
FCF Yield = 4.74% (FCF TTM 150.6m / Enterprise Value 3.18b)
FCF Margin = 5.63% (FCF TTM 150.6m / Revenue TTM 2.68b)
Net Margin = -3.18% (Net Income TTM -85.2m / Revenue TTM 2.68b)
Gross Margin = 17.11% ((Revenue TTM 2.68b - Cost of Revenue TTM 2.22b) / Revenue TTM)
Gross Margin QoQ = 20.52% (prev 16.31%)
Tobins Q-Ratio = 1.17 (Enterprise Value 3.18b / Total Assets 2.71b)
Interest Expense / Debt = 7.11% (Interest Expense 84.0m / Debt 1.18b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 2.29m (EBIT 2.90m * (1 - 21.00%))
Current Ratio = 0.96 (Total Current Assets 923.6m / Total Current Liabilities 963.7m)
Debt / Equity = 2.25 (Debt 1.18b / totalStockholderEquity, last quarter 524.2m)
Debt / EBITDA = 12.46 (Net Debt 1.01b / EBITDA 81.2m)
Debt / FCF = 6.72 (Net Debt 1.01b / FCF TTM 150.6m)
Total Stockholder Equity = 548.6m (last 4 quarters mean from totalStockholderEquity)
RoA = -3.07% (Net Income -85.2m / Total Assets 2.71b)
RoE = -15.53% (Net Income TTM -85.2m / Total Stockholder Equity 548.6m)
RoCE = 0.18% (EBIT 2.90m / Capital Employed (Equity 548.6m + L.T.Debt 1.04b))
RoIC = 0.14% (NOPAT 2.29m / Invested Capital 1.64b)
WACC = 9.48% (E(2.16b)/V(3.34b) * Re(11.58%) + D(1.18b)/V(3.34b) * Rd(7.11%) * (1-Tc(0.21)))
Discount Rate = 11.58% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 84.72 | Cagr: 2.49%
[DCF] Terminal Value 71.59% ; FCFF base≈150.6m ; Y1≈151.2m ; Y5≈160.2m
[DCF] Fair Price = 11.34 (EV 2.09b - Net Debt 1.01b = Equity 1.08b / Shares 95.1m; r=9.48% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.47 | # QB: 0
Revenue Correlation: -42.55 | Revenue CAGR: -1.39% | SUE: 0.84 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.22 | Chg30d=+2.89% | Revisions=-8% | Analysts=12
EPS current Year (2026-12-31): EPS=0.85 | Chg30d=+0.64% | Revisions=+21% | GrowthEPS=+96.7% | GrowthRev=-2.2%
EPS next Year (2027-12-31): EPS=1.14 | Chg30d=-0.12% | Revisions=+17% | GrowthEPS=+34.4% | GrowthRev=+3.3%
[Analyst] Revisions Ratio: +12% (up=13, down=10)