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. FOR scores excellent on profitability, but there are concerns on its financial health. FOR is not valued too expensively and it also shows a decent growth rate.
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.
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
The Return On Assets of FOR (6.14%) is better than 91.67% of its industry peers.
The Return On Equity of FOR (11.27%) is better than 88.33% of its industry peers.
With an excellent Return On Invested Capital value of 6.63%, FOR belongs to the best of the industry, outperforming 88.33% 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 4.87%.
| 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
With an excellent Profit Margin value of 12.50%, FOR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
FOR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.14%, FOR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
FOR's Operating Margin has improved in the last couple of years.
FOR has a Gross Margin (23.84%) 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 | 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
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.
FOR has a better debt/assets ratio than last year.
2.2 Solvency
FOR has an Altman-Z score of 1.56. This is a bad value and indicates that FOR is not financially healthy and even has some risk of bankruptcy.
FOR has a Altman-Z score (1.56) which is comparable to the rest of the 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 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.56 |
ROIC/WACC0.92
WACC7.22%
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.
With a Current ratio value of 0.39, FOR is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.39 indicates that FOR may have some problems paying its short term obligations.
With a Quick ratio value of 0.39, FOR is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The earnings per share for FOR have decreased by -4.89% 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
The Revenue has decreased by -4.72% in the past year.
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)-4.89%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%-57.89%
Revenue 1Y (TTM)-4.72%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%-18.14%
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-8.66%
EPS Next 2Y1.64%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue Next Year12.87%
Revenue Next 2Y12.02%
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
The Price/Earnings ratio is 6.50, which indicates a rather cheap valuation of FOR.
FOR's Price/Earnings ratio is rather cheap when compared to the industry. FOR is cheaper than 95.00% 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 29.63.
Based on the Price/Forward Earnings ratio of 5.59, the valuation of FOR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FOR indicates a rather cheap valuation: FOR is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FOR to the average of the S&P500 Index (22.68), we can say FOR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 5.59 |
4.2 Price Multiples
FOR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FOR is cheaper than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.19 |
4.3 Compensation for Growth
The excellent profitability rating of FOR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y1.64%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
FOR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.76
-0.28 (-1.22%)
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-89.29%
Ins Owners0.4%
Ins Owner Change0.95%
Market Cap1.15B
Analysts85
Price Target35.02 (53.87%)
Short Float %2.84%
Short Ratio3.12
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)-13.63%
PT rev (3m)-13.63%
EPS NQ rev (1m)-5.1%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)-6.06%
EPS NY rev (3m)-7.57%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 5.59 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)3.5
EY15.38%
EPS(NY)4.07
Fwd EY17.88%
FCF(TTM)-8.95
FCFYN/A
OCF(TTM)-8.91
OCFYN/A
SpS28.69
BVpS31.83
TBVpS31.83
PEG (NY)N/A
PEG (5Y)0.21
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 | 1.56 |
F-Score3
WACC7.22%
ROIC/WACC0.92
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)-4.89%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%-57.89%
EPS Next Y-8.66%
EPS Next 2Y1.64%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.72%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%-18.14%
Revenue Next Year12.87%
Revenue Next 2Y12.02%
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