FORESTAR GROUP INC (FOR) Stock Fundamental Analysis
NYSE:FOR - US3462321015 - Common Stock
27.67 USD
+0.04 (+0.14%)
27.67 USD
0 (0%)
Overall FOR gets a fundamental rating of 4 out of 10. We evaluated FOR against 63 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 has a correct valuation and a medium growth rate.
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.
The reported operating cash flow has been mixed in the past 5 years: FOR reported negative operating cash flow in multiple years.
1.2 Ratios
FOR has a Return On Assets of 5.21%. This is amongst the best in the industry. FOR outperforms 92.06% of its industry peers.
The Return On Equity of FOR (9.68%) is better than 85.71% 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 80.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FOR is above the industry average of 5.46%.
| 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
Looking at the Profit Margin, with a value of 10.54%, FOR belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
In the last couple of years the Profit Margin of FOR has grown nicely.
The Operating Margin of FOR (13.54%) is better than 79.37% 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 47.62% 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.
FOR has more shares outstanding than it did 1 year ago.
FOR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FOR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that FOR is in the distress zone and has some risk of bankruptcy.
FOR has a Altman-Z score (1.64) which is in line with its industry peers.
A Debt/Equity ratio of 0.52 indicates that FOR is somewhat dependend on debt financing.
The Debt to Equity ratio of FOR (0.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.64 |
ROIC/WACC0.76
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.51 indicates that FOR may have some problems paying its short term obligations.
The Current ratio of FOR (0.51) is worse than 87.30% of its industry peers.
A Quick Ratio of 0.51 indicates that FOR may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, FOR is not doing good in the industry: 84.13% 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%.
Measured over the past years, FOR shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.52% on average per year.
Looking at the last year, FOR shows a small growth in Revenue. The Revenue has grown by 2.35% in the last year.
The Revenue has been growing by 28.65% on average over the past years. This is a very strong growth!
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.
The Revenue is expected to grow by 10.10% on average over the next years. This is quite good.
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.62, which indicates a very decent valuation of FOR.
Based on the Price/Earnings ratio, FOR is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.08, FOR is valued rather cheaply.
The Price/Forward Earnings ratio is 8.90, which indicates a very decent valuation of FOR.
Based on the Price/Forward Earnings ratio, FOR is valued cheaply inside the industry as 98.41% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.72. FOR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOR is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.84 |
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)0.28
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 |
27.67
+0.04 (+0.14%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners35.51%
Inst Owner Change1.6%
Ins Owners0.49%
Ins Owner Change1.66%
Market Cap1.41B
Analysts82.5
Price Target31.96 (15.5%)
Short Float %5.01%
Short Ratio5.28
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)9.94%
PT rev (3m)6.82%
EPS NQ rev (1m)-4.66%
EPS NQ rev (3m)-18.92%
EPS NY rev (1m)-6.6%
EPS NY rev (3m)-6.6%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-8.5%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 8.9 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.84 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 9.84 |
EPS(TTM)3.21
EY11.6%
EPS(NY)3.11
Fwd EY11.23%
FCF(TTM)-6.63
FCFYN/A
OCF(TTM)-6.59
OCFYN/A
SpS30.36
BVpS33.04
TBVpS33.04
PEG (NY)N/A
PEG (5Y)0.28
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 | 1.64 |
F-Score2
WACC7.78%
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