FORESTAR GROUP INC (FOR) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:FOR - US3462321015 - Common Stock

25.36 USD

+0.86 (+3.51%)

Last: 1/27/2026, 12:23:50 PM

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to FOR. FOR was compared to 62 industry peers in the Real Estate Management & Development industry. FOR has an excellent profitability rating, but there are concerns on its financial health. FOR has a decent growth rate and is not valued too expensively.

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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.
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

Looking at the Return On Assets, with a value of 5.35%, FOR belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
FOR has a better Return On Equity (9.50%) than 85.48% of its industry peers.
With a decent Return On Invested Capital value of 6.15%, FOR is doing good in the industry, outperforming 77.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FOR is in line with the industry average of 5.44%.

		Industry Rank	Sector Rank
ROA	5.35%
ROE	9.5%
ROIC	6.15%

ROA(3y)6.42%

ROA(5y)6.43%

ROE(3y)11.48%

ROE(5y)12.05%

ROIC(3y)7.33%

ROIC(5y)7.6%

1.3 Margins

FOR's Profit Margin of 10.10% is fine compared to the rest of the industry. FOR outperforms 79.03% of its industry peers.
FOR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.01%, FOR belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
FOR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 22.30%, FOR perfoms like the industry average, outperforming 51.61% 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	13.01%
PM (TTM)	10.1%
GM	22.3%

OM growth 3Y-5.5%

OM growth 5Y10.86%

PM growth 3Y-4.97%

PM growth 5Y9.13%

GM growth 3Y1.1%

GM growth 5Y11.96%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FOR is destroying value.
The number of shares outstanding for FOR has been increased compared to 1 year ago.
The number of shares outstanding for FOR has been increased compared to 5 years ago.
FOR has a worse debt/assets ratio than last year.

2.2 Solvency

FOR has an Altman-Z score of 1.75. 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 of 1.75. This is comparable to the rest of the industry: FOR outperforms 48.39% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that FOR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.45, FOR is in line with its industry, outperforming 56.45% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.45
Debt/FCF	N/A
Altman-Z	1.75

ROIC/WACC0.81

WACC7.6%

2.3 Liquidity

A Current Ratio of 0.89 indicates that FOR may have some problems paying its short term obligations.
The Current ratio of FOR (0.89) is worse than 82.26% of its industry peers.
FOR has a Quick Ratio of 0.89. 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 Quick ratio, with a value of 0.89, FOR is doing worse than 79.03% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.89
Quick Ratio	0.89

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

FOR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.00%.
Measured over the past years, FOR shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.29% on average per year.
Looking at the last year, FOR shows a quite strong growth in Revenue. The Revenue has grown by 15.89% in the last year.
FOR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.27% yearly.

EPS 1Y (TTM)-6%

EPS 3Y-3.21%

EPS 5Y22.29%

EPS Q2Q%-6.25%

Revenue 1Y (TTM)15.89%

Revenue growth 3Y3.05%

Revenue growth 5Y12.27%

Sales Q2Q%9.03%

3.2 Future

The Earnings Per Share is expected to grow by 3.24% on average over the next years.
Based on estimates for the next years, FOR will show a small growth in Revenue. The Revenue will grow by 7.43% on average per year.

EPS Next Y-7.65%

EPS Next 2Y3.24%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year5.75%

Revenue Next 2Y7.43%

Revenue Next 3YN/A

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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.71, the valuation of FOR can be described as very cheap.
FOR's Price/Earnings ratio is rather cheap when compared to the industry. FOR is cheaper than 93.55% of the companies in the same industry.
FOR is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.19, 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 98.39% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, FOR is valued rather cheaply.

		Industry Rank	Sector Rank
PE	7.71
Fwd PE	7.19

4.2 Price Multiples

FOR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FOR is cheaper than 96.77% of the companies in the same industry.