Fortrea Holdings Inc. — Earnings Quality Grade F
FTRE · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 15 days, change -6 days YoY
AR growth -27.4% vs revenue growth 1.0%
Revenue 1.0%, CFFO -56.8%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -1.2% vs revenue 1.0%. Normal
SG&A/Gross Profit = 90.6%, exceeds 70%
Gross margin 18.5%, change -1.3pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.1B, FCF/NI = -0.09
Accruals ratio = -40.5%. Low accruals
Cash $0.2B covers only 16% of debt $1.1B
Balance Sheet Health
Goodwill+Intangibles $1.6B = 281% of equity. Over 50%
Interest coverage = -0.3x (<2x). Financial stress
Other assets -21.9% vs revenue 1.0%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -33% YoY. Normal
Manipulation Score
M-Score = -4.69 (< -2.22). Unlikely manipulator
Portfolio monitoring
Monitor FTRE continuously
The full checks and model details are free to read. Use Watchlist to track your holdings; Pro adds automatic quarterly rescoring, risk-event email alerts, scans up to 50 tickers, and export workflows.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25