Fortrea Holdings Inc. Common Stock (FTRE)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach a company like Fortrea with Graham's skepticism. It is a contract research organization that runs clinical trials and development work for biopharma and medical-device customers, with 14,000 employees. The business is understandable, but the numbers are not those of a durable compounder. Revenue was $2.8B in fiscal year 2023, then $2.7B in both fiscal year 2024 and fiscal year 2025. Worse, losses have ballooned: net income was -$25.2M in fiscal year 2023, -$328.5M in fiscal year 2024, and -$986.2M in fiscal year 2025. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $678.2M versus $710.3M in fiscal Q2 2025, while net loss was $13.2M versus a $374.9M loss a year earlier. That narrowing loss is encouraging, and trailing free cash flow of $196M, a 9.9% yield by FairStock's calculation, is a genuine positive. But the balance sheet is fragile: debt-to-equity is 2.13 and the Altman Z-Score is 0.07. FairStock's ROCE is 0.58% and ROE is -15.30%. At the 2026-10-13 close of $20.92, the P/B is 3.80 and EV/EBITDA is 34.69—rich for a company with negative earnings. The FairStock Score is 49/100 and the Lynch category is TURNAROUND. Piotroski 7/9 hints at improvement, but a real turnaround needs consistent profits and lower leverage, not just smaller losses.

In plain English: Fortrea helps drug and medical device companies run clinical trials. It has been losing money, with a huge loss in fiscal year 2025 and lower sales in the latest quarter than a year earlier. At $20.92, the price looks high for a business with weak profits and a lot of debt, though it still generates some cash.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer