FORESTAR GROUP INC (FOR) Stock Fundamental Analysis
NYSE:FOR - New York Stock Exchange, Inc. - US3462321015 - Common Stock - Currency: USD
Overall FOR gets a fundamental rating of 5 out of 10. We evaluated FOR against 65 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FOR had positive earnings in the past year.
FOR had a negative operating cash flow in the past year.
Each year in the past 5 years FOR has been profitable.
In multiple years FOR reported negative operating cash flow during the last 5 years.
1.2 Ratios
FOR has a better Return On Assets (6.14%) than 95.38% of its industry peers.
FOR has a better Return On Equity (11.27%) than 93.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.63%, FOR belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FOR is above the industry average of 5.53%.
| Industry Rank | Sector 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%
1.3 Margins
FOR's Profit Margin of 12.50% is amongst the best of the industry. FOR outperforms 87.69% of its industry peers.
FOR's Profit Margin has improved in the last couple of years.
FOR has a better Operating Margin (15.14%) than 84.62% of its industry peers.
In the last couple of years the Operating Margin of FOR has grown nicely.
FOR has a Gross Margin (23.84%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FOR has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FOR is creating some value.
Compared to 1 year ago, FOR has more shares outstanding
The number of shares outstanding for FOR has been increased compared to 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 1.50, we must say that FOR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.50, FOR perfoms like the industry average, outperforming 56.92% of the companies in the same industry.
FOR has a Debt/Equity ratio of 0.50. This is a neutral value indicating FOR is somewhat dependend on debt financing.
FOR's Debt to Equity ratio of 0.50 is in line compared to the rest of the industry. FOR outperforms 52.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.9
WACC7.34%
2.3 Liquidity
FOR has a Current Ratio of 0.39. This is a bad value and indicates that FOR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.39, FOR is doing worse than 84.62% of the companies in the same industry.
FOR has a Quick Ratio of 0.39. 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 has a worse Quick ratio (0.39) than 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
FOR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.35%.
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%.
Measured over the past years, FOR shows a very strong growth in Revenue. The Revenue has been growing by 28.65% on average per year.
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
The Earnings Per Share is expected to grow by 6.42% on average over the next years.
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-9.08%
EPS Next 2Y1.22%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue Next Year9.55%
Revenue Next 2Y9.63%
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
A Price/Earnings ratio of 6.16 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.
FOR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
The Price/Forward Earnings ratio is 4.96, which 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 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FOR to the average of the S&P500 Index (20.81), we can say FOR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.16 | ||
| Fwd PE | 4.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FOR indicates a rather cheap valuation: FOR is cheaper than 90.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.58 |
4.3 Compensation for Growth
FOR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y1.22%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
No dividends for FOR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.01
+0.63 (+3.25%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners36.84%
Inst Owner Change-3.22%
Ins Owners0.4%
Ins Owner Change3.19%
Market Cap1.02B
Analysts85
Price Target29.92 (49.53%)
Short Float %3.66%
Short Ratio3.1
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)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)-14.56%
PT rev (3m)-14.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-2.94%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.16 | ||
| Fwd PE | 4.96 | ||
| P/S | 0.7 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.63 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 7.58 |
EPS(TTM)3.25
EY16.24%
EPS(NY)4.04
Fwd EY20.17%
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 Rank | Sector 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 Rank | Sector 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 | 1.5 |
F-Score3
WACC7.34%
ROIC/WACC0.9
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-9.08%
EPS Next 2Y1.22%
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 Year9.55%
Revenue Next 2Y9.63%
Revenue Next 3Y10.1%
Revenue Next 5YN/A
EBIT growth 1Y-10.64%
EBIT growth 3Y15.05%
EBIT growth 5Y46.17%
EBIT Next Year7.12%
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