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A low performance year means FTSE 250 It’s stacked with the highest growth share at rock bottom prices. Here, I think that a savvy investor should consider buying today.
Revenue growth of over 30%
forterra‘(LSE:FORT) The ratio of forward price to revenue (P/E) is 18.7 times. This may not be particularly appealing from a value perspective. However, as I explain, this reading is expected to collapse in the coming years, and brokers predict that profits will take off.
| year | Expected annual revenue growth |
|---|---|
| 2025 | 31% |
| 2026 | 37% |
| 2027 | 34% |
This FTSE 250 company is the second largest brick manufacturer in the UK. Its sales and profits have declined in recent years as higher interest rates weakened new home sales.
However, revenues are being engraved so that revenues will rebound strongly from 2025 as the Bank of England steadily eases fees and the war on the mortgage market will benefit buyers. In fact, Forterra believes:Brick consumption can grow faster than home completion in the short term“Given the demand has been significantly lower than its completion in recent years, this means that the stock levels of builders are unusually low.
Sales are rising sharply
The latest trading news in May highlighted the brickmaker’s huge short-term growth potential. The business said it had grown 22% in sales in the four months leading up to April, with the company commenting “.Powerful performance in both bricks and blocks and segments that operate bespoke products“.
The business has invested heavily in three factories to take advantage of the improvements in the housing market and diversify its market offerings. The Accrington plant can produce 48m of lightweight brick slips per year, targeting the modular construction sector where construction speed and sustainability are key priorities.
It also spent £95 million to reduce the cost and double the capacity of the Desford Brick plant to 180m of bricks per year. The company is enough to build a home for the average family of 24,000, and makes it into great shape to take advantage of the new house building boom.
The current government plan is to build a new 1.5m home over the five years leading up to 2029.
A bargain for the FTSE 250?
As I said at the top, current city forecasts will drop Fortera’s forward P/E ratio sharply over the next three years. From 18.7 times this year, that multiple fell 13.6 times in 2026, once again to 10.2 times.
This is not all that caught my eye as a keen value investor. For 2025, 2026, and 2027, their P/E to growth (PEG) ratios are 0.6, 0.4, and 0.3, respectively.
Readings below one indicate that the share is underestimated.
Sudden increases inflation affecting interest rates could promote a brickwork recovery. This means a new recession in the UK economy is also possible. But, in balance, I think the company is taking a lot of shape to bring about strong and sustainable revenue growth.
If I didn’t have a Fel Brickmaker yet ibstock In my portfolio, I’m seriously thinking about snapping some Forterra stocks today.
