FORESTAR GROUP INC (FOR) Stock Fundamental Analysis
NYSE:FOR - New York Stock Exchange, Inc. - US3462321015 - Common Stock - Currency: USD
Taking everything into account, FOR scores 5 out of 10 in our fundamental rating. FOR was compared to 64 industry peers in the Real Estate Management & Development industry. While FOR belongs to the best of the industry regarding profitability, there are concerns on its financial health. FOR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FOR was profitable.
FOR had a negative operating cash flow in the past year.
In the past 5 years FOR has always been profitable.
In multiple years FOR reported negative operating cash flow during the last 5 years.
1.2 Ratios
FOR's Return On Assets of 5.21% is amongst the best of the industry. FOR outperforms 93.75% of its industry peers.
FOR's Return On Equity of 9.68% is amongst the best of the industry. FOR outperforms 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.95%, FOR belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
FOR had an Average Return On Invested Capital over the past 3 years of 8.23%. This is above the industry average of 5.64%.
| 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 amongst the best of the industry. FOR outperforms 82.81% of its industry peers.
FOR's Profit Margin has improved in the last couple of years.
FOR's Operating Margin of 13.54% is amongst the best of the industry. FOR outperforms 81.25% of its industry peers.
In the last couple of years the Operating Margin of FOR has grown nicely.
FOR has a Gross Margin (22.86%) which is comparable to the rest of the industry.
FOR's Gross Margin has improved in the last couple of years.
| 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
FOR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FOR has more shares outstanding
Compared to 5 years ago, FOR has more shares outstanding
The debt/assets ratio for FOR has been reduced compared to a year ago.
2.2 Solvency
FOR has an Altman-Z score of 1.61. This is a bad value and indicates that FOR is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.61, FOR perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
FOR has a Debt/Equity ratio of 0.52. This is a neutral value indicating FOR is somewhat dependend on debt financing.
FOR has a Debt to Equity ratio (0.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.61 |
ROIC/WACC0.84
WACC7.1%
2.3 Liquidity
A Current Ratio of 0.51 indicates that FOR may have some problems paying its short term obligations.
FOR has a worse Current ratio (0.51) than 87.50% 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.
With a Quick ratio value of 0.51, FOR is not doing good in the industry: 82.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
FOR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.30%.
FOR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.52% yearly.
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
Based on estimates for the next years, FOR will show a small growth in Earnings Per Share. The EPS will grow by 6.42% on average per year.
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-22.33%
EPS Next 2Y-7.28%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue Next Year6.64%
Revenue Next 2Y7.19%
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
With a Price/Earnings ratio of 8.17, the valuation of FOR can be described as very reasonable.
Based on the Price/Earnings ratio, FOR is valued cheaply inside the industry as 95.31% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FOR to the average of the S&P500 Index (27.03), we can say FOR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.74, the valuation of FOR can be described as very cheap.
FOR's Price/Forward Earnings ratio is rather cheap when compared to the industry. FOR is cheaper than 98.44% of the companies in the same industry.
FOR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
92.19% of the companies in the same industry are more expensive than FOR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.5 |
4.3 Compensation for Growth
The excellent profitability rating of FOR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-7.28%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
FOR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.23
+0.71 (+2.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners36.36%
Inst Owner Change-1.24%
Ins Owners0.49%
Ins Owner Change2.92%
Market Cap1.33B
Analysts85
Price Target29.07 (10.83%)
Short Float %5.08%
Short Ratio5.69
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)1.79%
PT rev (3m)-2.84%
EPS NQ rev (1m)-4.19%
EPS NQ rev (3m)-18.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.57%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)-8.5%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)-2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.86 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 9.5 |
EPS(TTM)3.21
EY12.24%
EPS(NY)3.39
Fwd EY12.91%
FCF(TTM)-6.63
FCFYN/A
OCF(TTM)-6.59
OCFYN/A
SpS30.36
BVpS33.04
TBVpS33.04
PEG (NY)N/A
PEG (5Y)0.27
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 | 1.61 |
F-Score2
WACC7.1%
ROIC/WACC0.84
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-22.33%
EPS Next 2Y-7.28%
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 Year6.64%
Revenue Next 2Y7.19%
Revenue Next 3Y10.1%
Revenue Next 5YN/A
EBIT growth 1Y-9.68%
EBIT growth 3Y15.05%
EBIT growth 5Y46.17%
EBIT Next Year-9.49%
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