FORESTAR GROUP INC (FOR)
US3462321015 - Common Stock
We assign a fundamental rating of 7 out of 10 to FOR. FOR was compared to 67 industry peers in the Real Estate Management & Development industry. FOR has an excellent profitability rating, but there are some minor concerns on its financial health. FOR is evaluated to be cheap and growing strongly. This does not happen too often! This makes FOR very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
FOR had positive earnings in the past year.
In the past year FOR had a positive 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
FOR's Return On Assets of 7.27% is amongst the best of the industry. FOR outperforms 93.94% of its industry peers.
With an excellent Return On Equity value of 13.09%, FOR belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
FOR has a better Return On Invested Capital (8.53%) than 95.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FOR is above the industry average of 5.49%.
The 3 year average ROIC (7.97%) for FOR is below the current ROIC(8.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.27% | ||
| ROE | 13.09% | ||
| ROIC | 8.53% |
ROA(3y)6.54%
ROA(5y)5.08%
ROE(3y)12.66%
ROE(5y)9.81%
ROIC(3y)7.97%
ROIC(5y)5.93%
1.3 Margins
FOR has a better Profit Margin (12.08%) than 86.36% of its industry peers.
FOR's Profit Margin has declined in the last couple of years.
FOR has a better Operating Margin (16.14%) than 86.36% of its industry peers.
FOR's Operating Margin has improved in the last couple of years.
FOR has a Gross Margin (22.88%) which is in line with its industry peers.
In the last couple of years the Gross Margin of FOR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.14% | ||
| PM (TTM) | 12.08% | ||
| GM | 22.88% |
OM growth 3Y26.46%
OM growth 5YN/A
PM growth 3Y21.19%
PM growth 5Y-23.39%
GM growth 3Y21.11%
GM growth 5Y41.73%
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
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 2.22. This is not the best score and indicates that FOR is in the grey zone with still only limited risk for bankruptcy at the moment.
FOR has a Altman-Z score of 2.22. This is in the better half of the industry: FOR outperforms 63.64% of its industry peers.
FOR has a debt to FCF ratio of 2.76. This is a good value and a sign of high solvency as FOR would need 2.76 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.76, FOR belongs to the top of the industry, outperforming 81.82% 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.
The Debt to Equity ratio of FOR (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | 2.22 |
ROIC/WACC1.03
WACC8.32%
2.3 Liquidity
A Current Ratio of 1.42 indicates that FOR should not have too much problems paying its short term obligations.
FOR has a Current ratio (1.42) which is in line with its industry peers.
A Quick Ratio of 1.42 indicates that FOR should not have too much problems paying its short term obligations.
FOR has a Quick ratio (1.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.88% over the past year.
The Earnings Per Share has been growing by 23.07% on average over the past years. This is a very strong growth
The Revenue has grown by 14.90% in the past year. This is quite good.
Measured over the past years, FOR shows a very strong growth in Revenue. The Revenue has been growing by 65.91% on average per year.
EPS 1Y (TTM)12.88%
EPS 3Y40.28%
EPS 5Y23.07%
EPS growth Q2Q80.95%
Revenue 1Y (TTM)14.9%
Revenue growth 3Y15.53%
Revenue growth 5Y65.91%
Revenue growth Q2Q41.16%
3.2 Future
FOR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.02% yearly.
The Revenue is expected to grow by 11.66% on average over the next years. This is quite good.
EPS Next Y16.22%
EPS Next 2Y12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.7%
Revenue Next 2Y16.53%
Revenue Next 3Y11.66%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
FOR is valuated reasonably with a Price/Earnings ratio of 8.51.
93.94% of the companies in the same industry are more expensive than FOR, based on the Price/Earnings ratio.
FOR is valuated cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.47, which indicates a rather cheap valuation of FOR.
Based on the Price/Forward Earnings ratio, FOR is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.49. FOR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
FOR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FOR is cheaper than 90.91% of the companies in the same industry.
FOR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FOR is cheaper than 92.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.11 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
FOR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of FOR may justify a higher PE ratio.
A more expensive valuation may be justified as FOR's earnings are expected to grow with 12.02% in the coming years.
PEG (NY)0.52
PEG (5Y)0.37
EPS Next 2Y12.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FOR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FORESTAR GROUP INC
NYSE:FOR (4/26/2024, 7:04:00 PM)
After market: 31.33 0 (0%)31.33
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.52
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.27% | ||
| ROE | 13.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.14% | ||
| PM (TTM) | 12.08% | ||
| GM | 22.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.88%
EPS 3Y40.28%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.9%
Revenue growth 3Y15.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y