FORESTAR GROUP INC (FOR) Stock Fundamental Analysis
USA - NYSE:FOR - US3462321015 - Common Stock
25.88 USD
+0.45 (+1.77%)
25.88 USD
0 (0%)
FOR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 industry peers in the Real Estate Management & Development industry. While FOR has a great profitability rating, there are quite some concerns on its financial health. FOR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FOR had positive earnings in the past year.
In the past year FOR has reported a negative cash flow from operations.
FOR had positive earnings in each of the past 5 years.
In multiple years FOR reported negative operating cash flow during the last 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.21%, FOR belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.68%, FOR belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
The Return On Invested Capital of FOR (5.95%) is better than 81.25% of its industry peers.
FOR had an Average Return On Invested Capital over the past 3 years of 8.23%. This is in line with the industry average of 6.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 9.68% | ||
| ROIC | 5.95% |
ROA(3y)7.18%
ROA(5y)6.06%
ROE(3y)13.29%
ROE(5y)11.54%
ROIC(3y)8.23%
ROIC(5y)7.03%
1.3 Margins
FOR's Profit Margin of 10.54% is fine compared to the rest of the industry. FOR outperforms 79.69% of its industry peers.
In the last couple of years the Profit Margin of FOR has grown nicely.
The Operating Margin of FOR (13.54%) is better than 79.69% of its industry peers.
FOR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 22.86%, FOR is in line with its industry, outperforming 51.56% of the companies in the same industry.
In the last couple of years the Gross Margin of FOR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.54% | ||
| PM (TTM) | 10.54% | ||
| GM | 22.86% |
OM growth 3Y10.19%
OM growth 5Y13.62%
PM growth 3Y17.48%
PM growth 5Y11.83%
GM growth 3Y11.67%
GM growth 5Y9.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FOR is still creating some value.
The number of shares outstanding for FOR has been increased compared to 1 year ago.
Compared to 5 years ago, FOR has more shares outstanding
Compared to 1 year ago, FOR has an improved debt to assets ratio.
2.2 Solvency
FOR has an Altman-Z score of 1.59. This is a bad value and indicates that FOR is not financially healthy and even has some risk of bankruptcy.
FOR has a Altman-Z score (1.59) which is comparable to the rest of the industry.
FOR has a Debt/Equity ratio of 0.52. This is a neutral value indicating FOR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, FOR is in line with its industry, outperforming 51.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.59 |
ROIC/WACC0.76
WACC7.86%
2.3 Liquidity
FOR has a Current Ratio of 0.51. This is a bad value and indicates that FOR is not financially healthy enough and could expect problems in meeting its short term obligations.
FOR's Current ratio of 0.51 is on the low side compared to the rest of the industry. FOR is outperformed by 82.81% of its industry peers.
FOR has a Quick Ratio of 0.51. This is a bad value and indicates that FOR is not financially healthy enough and could expect problems in meeting its short term obligations.
FOR's Quick ratio of 0.51 is on the low side compared to the rest of the industry. FOR is outperformed by 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for FOR have decreased strongly by -15.30% in the last year.
The Earnings Per Share has been growing by 30.52% on average over the past years. This is a very strong growth
Looking at the last year, FOR shows a small growth in Revenue. The Revenue has grown by 2.35% in the last year.
FOR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.65% yearly.
EPS 1Y (TTM)-15.3%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%-5.8%
Revenue 1Y (TTM)2.35%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%22.64%
3.2 Future
The Earnings Per Share is expected to grow by 6.42% on average over the next years.
FOR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.10% yearly.
EPS Next Y-27.45%
EPS Next 2Y-11.19%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y6.97%
Revenue Next 3Y10.1%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
FOR is valuated reasonably with a Price/Earnings ratio of 8.06.
Based on the Price/Earnings ratio, FOR is valued cheaper than 93.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, FOR is valued rather cheaply.
FOR is valuated reasonably with a Price/Forward Earnings ratio of 8.33.
Based on the Price/Forward Earnings ratio, FOR is valued cheaper than 98.44% of the companies in the same industry.
FOR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOR is valued cheaply inside the industry as 92.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.31 |
4.3 Compensation for Growth
FOR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-11.19%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
No dividends for FOR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.88
+0.45 (+1.77%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners36.48%
Inst Owner Change2.26%
Ins Owners0.45%
Ins Owner Change-1.63%
Market Cap1.32B
Analysts82.5
Price Target31.96 (23.49%)
Short Float %4.83%
Short Ratio5.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.41%
Min EPS beat(2)-19.97%
Max EPS beat(2)-12.84%
EPS beat(4)1
Avg EPS beat(4)-16.63%
Min EPS beat(4)-54.74%
Max EPS beat(4)21.02%
EPS beat(8)4
Avg EPS beat(8)4.45%
EPS beat(12)7
Avg EPS beat(12)19.73%
EPS beat(16)10
Avg EPS beat(16)19.15%
Revenue beat(2)0
Avg Revenue beat(2)-4.73%
Min Revenue beat(2)-8.45%
Max Revenue beat(2)-1.01%
Revenue beat(4)1
Avg Revenue beat(4)-6.42%
Min Revenue beat(4)-24.59%
Max Revenue beat(4)8.37%
Revenue beat(8)4
Avg Revenue beat(8)0.81%
Revenue beat(12)7
Avg Revenue beat(12)6.45%
Revenue beat(16)10
Avg Revenue beat(16)4.73%
PT rev (1m)0%
PT rev (3m)9.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 8.33 | ||
| P/S | 0.85 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)3.21
EY12.4%
EPS(NY)3.11
Fwd EY12.01%
FCF(TTM)-6.63
FCFYN/A
OCF(TTM)-6.59
OCFYN/A
SpS30.36
BVpS33.04
TBVpS33.04
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 9.68% | ||
| ROCE | 7.9% | ||
| ROIC | 5.95% | ||
| ROICexc | 6.41% | ||
| ROICexgc | 6.5% | ||
| OM | 13.54% | ||
| PM (TTM) | 10.54% | ||
| GM | 22.86% | ||
| FCFM | N/A |
ROA(3y)7.18%
ROA(5y)6.06%
ROE(3y)13.29%
ROE(5y)11.54%
ROIC(3y)8.23%
ROIC(5y)7.03%
ROICexc(3y)10.43%
ROICexc(5y)8.72%
ROICexgc(3y)10.52%
ROICexgc(5y)8.8%
ROCE(3y)10.93%
ROCE(5y)9.33%
ROICexcg growth 3Y8.89%
ROICexcg growth 5Y25.99%
ROICexc growth 3Y8.76%
ROICexc growth 5Y25.91%
OM growth 3Y10.19%
OM growth 5Y13.62%
PM growth 3Y17.48%
PM growth 5Y11.83%
GM growth 3Y11.67%
GM growth 5Y9.47%
F-Score2
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 69.7% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.59 |
F-Score2
WACC7.86%
ROIC/WACC0.76
Cap/Depr(3y)82.1%
Cap/Depr(5y)63.56%
Cap/Sales(3y)0.16%
Cap/Sales(5y)0.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.3%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%-5.8%
EPS Next Y-27.45%
EPS Next 2Y-11.19%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue 1Y (TTM)2.35%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%22.64%
Revenue Next Year5.96%
Revenue Next 2Y6.97%
Revenue Next 3Y10.1%
Revenue Next 5YN/A
EBIT growth 1Y-9.68%
EBIT growth 3Y15.05%
EBIT growth 5Y46.17%
EBIT Next Year-15.26%
EBIT Next 3Y12.12%
EBIT Next 5YN/A
FCF growth 1Y-232.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-231.24%
OCF growth 3YN/A
OCF growth 5YN/A