Analyzing Forbo (FBOHY) and The Competition

Institutional & Insider Ownership

63.6% of shares of all “Building Products” companies are owned by institutional investors. 10.3% of shares of all “Building Products” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Forbo and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Forbo	N/A	N/A	17.49
Forbo Competitors	$3.98 billion	$4.66 billion	53.50

Forbo’s competitors have higher revenue and earnings than Forbo. Forbo is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Forbo pays an annual dividend of $0.25 per share and has a dividend yield of 1.2%. Forbo pays out 21.1% of its earnings in the form of a dividend. As a group, “Building Products” companies pay a dividend yield of 6.5% and pay out 37.8% of their earnings in the form of a dividend.

Profitability

This table compares Forbo and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forbo	N/A	N/A	N/A
Forbo Competitors	3.28%	39.84%	5.03%

Summary

Forbo competitors beat Forbo on 8 of the 9 factors compared.

About Forbo

Forbo Holding AG produces and sells floor coverings, building and construction adhesives, and power transmission and conveyor belt solutions in Europe, the Americas, Asia Pacific, and Africa. The company operates through two divisions, Flooring Systems and Movement Systems. The Flooring Systems division develops, produces, and sells linoleum, vinyl floorings, entrance flooring systems, carpet tiles, needle felt floor coverings, Flotex, the washable textile floorings, and building and construction adhesives, as well as various accessory products for laying, processing, cleaning, and care of flooring. This division also provides ready-made adhesives for floor covering installations, parquet flooring, and ceramic tiles, as well as leveling compounds for the construction industry and liquid floors under the trade name of Eurocol. Its products are used in public buildings, department stores, hospitals and other healthcare facilities, schools, libraries, commercial and office spaces, leisure centers, shops, hotels, restaurants, and cafeterias, as well as for applications in the residential market. The Movement Systems division offers conveyor and processing belts, plastic modular belts, power transmission belts, and timing and flat belts under the Siegling brand name. Its products are used in various applications in industry, trade, and the service sector, including conveyor and processing belts in the food industry; treadmill belts in fitness studios; and flat belts in mail distribution centers. Forbo Holding AG was founded in 1928 and is headquartered in Baar, Switzerland.