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FORESTAR GROUP INC (FOR) Stock Fundamental Analysis

NYSE:FOR - New York Stock Exchange, Inc. - US3462321015 - Common Stock - Currency: USD

19.425  +0.53 (+2.78%)

Fundamental Rating

5

Taking everything into account, FOR scores 5 out of 10 in our fundamental rating. FOR was compared to 65 industry peers in the Real Estate Management & Development industry. FOR scores excellent on profitability, but there are concerns on its financial health. FOR has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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8

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.
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.
FOR Yearly Net Income VS EBIT VS OCF VS FCFFOR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M

1.2 Ratios

The Return On Assets of FOR (6.14%) is better than 95.38% of its industry peers.
Looking at the Return On Equity, with a value of 11.27%, FOR belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
FOR has a better Return On Invested Capital (6.63%) than 86.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FOR is above the industry average of 5.51%.
Industry RankSector Rank
ROA 6.14%
ROE 11.27%
ROIC 6.63%
ROA(3y)7.18%
ROA(5y)6.06%
ROE(3y)13.29%
ROE(5y)11.54%
ROIC(3y)8.23%
ROIC(5y)7.03%
FOR Yearly ROA, ROE, ROICFOR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20 -30 -40

1.3 Margins

FOR has a better Profit Margin (12.50%) than 84.62% of its industry peers.
FOR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.14%, FOR belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of FOR has grown nicely.
FOR has a Gross Margin of 23.84%. This is comparable to the rest of the industry: FOR outperforms 47.69% of its industry peers.
In the last couple of years the Gross Margin of FOR has grown nicely.
Industry RankSector Rank
OM 15.14%
PM (TTM) 12.5%
GM 23.84%
OM growth 3Y10.19%
OM growth 5Y13.62%
PM growth 3Y17.48%
PM growth 5Y11.83%
GM growth 3Y11.67%
GM growth 5Y9.47%
FOR Yearly Profit, Operating, Gross MarginsFOR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50

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1

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.
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.
FOR Yearly Shares OutstandingFOR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
FOR Yearly Total Debt VS Total AssetsFOR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

FOR has an Altman-Z score of 1.47. 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 1.47, FOR perfoms like the industry average, outperforming 55.38% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that FOR is somewhat dependend on debt financing.
FOR has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF N/A
Altman-Z 1.47
ROIC/WACC0.87
WACC7.63%
FOR Yearly LT Debt VS Equity VS FCFFOR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 0.39 indicates that FOR may have some problems paying its short term obligations.
The Current ratio of FOR (0.39) is worse than 87.69% of its industry peers.
A Quick Ratio of 0.39 indicates that FOR may have some problems paying its short term obligations.
FOR's Quick ratio of 0.39 is on the low side compared to the rest of the industry. FOR is outperformed by 83.08% of its industry peers.
Industry RankSector Rank
Current Ratio 0.39
Quick Ratio 0.39
FOR Yearly Current Assets VS Current LiabilitesFOR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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5

3. Growth

3.1 Past

The earnings per share for FOR have decreased strongly by -19.35% 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
FOR shows a decrease in Revenue. In the last year, the revenue decreased by -5.60%.
The Revenue has been growing by 28.65% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-19.35%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%-28.09%
Revenue 1Y (TTM)-5.6%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%5.15%

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.
Based on estimates for the next years, FOR will show a quite strong growth in Revenue. The Revenue will grow by 10.10% on average per year.
EPS Next Y-22.33%
EPS Next 2Y-7.28%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue Next Year6.3%
Revenue Next 2Y7.57%
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.
FOR Yearly Revenue VS EstimatesFOR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
FOR Yearly EPS VS EstimatesFOR Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 5.98 indicates a rather cheap valuation of FOR.
Based on the Price/Earnings ratio, FOR is valued cheaper than 95.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, FOR is valued rather cheaply.
A Price/Forward Earnings ratio of 5.74 indicates a rather cheap valuation of FOR.
FOR's Price/Forward Earnings ratio is rather cheap when compared to the industry. FOR is cheaper than 98.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.77, FOR is valued rather cheaply.
Industry RankSector Rank
PE 5.98
Fwd PE 5.74
FOR Price Earnings VS Forward Price EarningsFOR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

90.77% of the companies in the same industry are more expensive than FOR, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.33
FOR Per share dataFOR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

The excellent profitability rating of FOR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-7.28%
EPS Next 3Y6.42%

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0

5. Dividend

5.1 Amount

FOR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FORESTAR GROUP INC

NYSE:FOR (5/27/2025, 2:37:21 PM)

19.425

+0.53 (+2.78%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)04-17 2025-04-17/bmo
Earnings (Next)07-16 2025-07-16/bmo
Inst Owners36.84%
Inst Owner Change-1.05%
Ins Owners0.4%
Ins Owner Change3.14%
Market Cap987.18M
Analysts85
Price Target29.92 (54.03%)
Short Float %4.03%
Short Ratio3.43
Dividend
Industry RankSector 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)1
Avg EPS beat(2)-16.86%
Min EPS beat(2)-54.74%
Max EPS beat(2)21.02%
EPS beat(4)2
Avg EPS beat(4)-8.67%
Min EPS beat(4)-54.74%
Max EPS beat(4)21.67%
EPS beat(8)6
Avg EPS beat(8)23.75%
EPS beat(12)8
Avg EPS beat(12)25.54%
EPS beat(16)12
Avg EPS beat(16)26.65%
Revenue beat(2)1
Avg Revenue beat(2)-8.11%
Min Revenue beat(2)-24.59%
Max Revenue beat(2)8.37%
Revenue beat(4)2
Avg Revenue beat(4)-7.92%
Min Revenue beat(4)-24.59%
Max Revenue beat(4)8.37%
Revenue beat(8)6
Avg Revenue beat(8)10.22%
Revenue beat(12)8
Avg Revenue beat(12)5.81%
Revenue beat(16)11
Avg Revenue beat(16)5.35%
PT rev (1m)0%
PT rev (3m)-14.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-14.57%
EPS NY rev (3m)-14.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-2.97%
Revenue NY rev (3m)-5.82%
Valuation
Industry RankSector Rank
PE 5.98
Fwd PE 5.74
P/S 0.68
P/FCF N/A
P/OCF N/A
P/B 0.61
P/tB 0.61
EV/EBITDA 7.33
EPS(TTM)3.25
EY16.73%
EPS(NY)3.39
Fwd EY17.44%
FCF(TTM)-8.93
FCFYN/A
OCF(TTM)-8.89
OCFYN/A
SpS28.61
BVpS31.74
TBVpS31.74
PEG (NY)N/A
PEG (5Y)0.2
Profitability
Industry RankSector Rank
ROA 6.14%
ROE 11.27%
ROCE 8.8%
ROIC 6.63%
ROICexc 7%
ROICexgc 7.08%
OM 15.14%
PM (TTM) 12.5%
GM 23.84%
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-Score3
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF N/A
Debt/EBITDA 3.62
Cap/Depr 66.67%
Cap/Sales 0.14%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.39
Quick Ratio 0.39
Altman-Z 1.47
F-Score3
WACC7.63%
ROIC/WACC0.87
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)-19.35%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%-28.09%
EPS Next Y-22.33%
EPS Next 2Y-7.28%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.6%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%5.15%
Revenue Next Year6.3%
Revenue Next 2Y7.57%
Revenue Next 3Y10.1%
Revenue Next 5YN/A
EBIT growth 1Y-10.64%
EBIT growth 3Y15.05%
EBIT growth 5Y46.17%
EBIT Next Year-9.49%
EBIT Next 3Y12.12%
EBIT Next 5YN/A
FCF growth 1Y-989.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-950.66%
OCF growth 3YN/A
OCF growth 5YN/A