FORESTAR GROUP INC (FOR)
US3462321015 - Common Stock
Taking everything into account, FOR scores 6 out of 10 in our fundamental rating. FOR was compared to 64 industry peers in the Real Estate Management & Development industry. While FOR has a great profitability rating, there are some minor 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.
The reported operating cash flow has been mixed in the past 5 years: FOR reported negative operating cash flow in multiple years.
1.2 Ratios
With an excellent Return On Assets value of 7.17%, FOR belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
FOR has a better Return On Equity (12.77%) than 93.65% of its industry peers.
The Return On Invested Capital of FOR (7.75%) is better than 95.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FOR is above the industry average of 4.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 12.77% | ||
| ROIC | 7.75% |
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 has a better Profit Margin (13.48%) than 88.89% of its industry peers.
In the last couple of years the Profit Margin of FOR has grown nicely.
With an excellent Operating Margin value of 16.24%, FOR belongs to the best of the industry, outperforming 87.30% 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 24.09%, FOR perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
FOR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.24% | ||
| PM (TTM) | 13.48% | ||
| GM | 24.09% |
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.
FOR has more shares outstanding than it did 1 year ago.
FOR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FOR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.91 indicates that FOR is not a great score, but indicates only limited risk for bankruptcy at the moment.
FOR's Altman-Z score of 1.91 is fine compared to the rest of the industry. FOR outperforms 60.32% of its industry peers.
FOR has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.44, FOR is in line with its industry, outperforming 50.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.91 |
ROIC/WACC1.06
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.16 indicates that FOR should not have too much problems paying its short term obligations.
FOR has a Current ratio (1.16) which is comparable to the rest of the industry.
A Quick Ratio of 1.16 indicates that FOR should not have too much problems paying its short term obligations.
FOR has a Quick ratio of 1.16. This is comparable to the rest of the industry: FOR outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.96% over the past year.
Measured over the past years, FOR shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.52% on average per year.
FOR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.05%.
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)17.96%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%10.34%
Revenue 1Y (TTM)5.05%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%0.31%
3.2 Future
FOR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.87% yearly.
The Revenue is expected to grow by 11.68% on average over the next years. This is quite good.
EPS Next Y-2.76%
EPS Next 2Y4.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.72%
Revenue Next 2Y11.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 cheaply with a Price/Earnings ratio of 6.59.
Based on the Price/Earnings ratio, FOR is valued cheaply inside the industry as 93.65% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.20. FOR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.78, the valuation of FOR can be described as very cheap.
FOR's Price/Forward Earnings ratio is rather cheap when compared to the industry. FOR is cheaper than 98.41% of the companies in the same industry.
FOR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 6.78 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than FOR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.21 |
4.3 Compensation for Growth
FOR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y4.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FOR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FORESTAR GROUP INC
NYSE:FOR (12/20/2024, 8:12:29 PM)
After market: 25.96 0 (0%)25.96
+0.44 (+1.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners36.8%
Inst Owner Change-0.61%
Ins Owners0.41%
Ins Owner Change0.59%
Market Cap1.32B
Analysts85
Price Target40.55 (56.2%)
Short Float %1.68%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-0.81%
Min EPS beat(2)-22.63%
Max EPS beat(2)21.02%
EPS beat(4)3
Avg EPS beat(4)17.56%
Min EPS beat(4)-22.63%
Max EPS beat(4)50.19%
EPS beat(8)6
Avg EPS beat(8)26.87%
EPS beat(12)9
Avg EPS beat(12)31.7%
EPS beat(16)13
Avg EPS beat(16)31.6%
Revenue beat(2)1
Avg Revenue beat(2)-4.25%
Min Revenue beat(2)-16.86%
Max Revenue beat(2)8.37%
Revenue beat(4)3
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-16.86%
Max Revenue beat(4)11.2%
Revenue beat(8)6
Avg Revenue beat(8)10.15%
Revenue beat(12)9
Avg Revenue beat(12)8.92%
Revenue beat(16)12
Avg Revenue beat(16)7.9%
PT rev (1m)0.21%
PT rev (3m)0.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)-1.6%
EPS NY rev (3m)-3.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 6.78 | ||
| P/S | 0.87 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.83 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 6.21 |
EPS(TTM)3.94
EY15.18%
EPS(NY)3.83
Fwd EY14.76%
FCF(TTM)-3.17
FCFYN/A
OCF(TTM)-3.13
OCFYN/A
SpS29.79
BVpS31.46
TBVpS31.46
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 12.77% | ||
| ROCE | 10.29% | ||
| ROIC | 7.75% | ||
| ROICexc | 9.71% | ||
| ROICexgc | 9.84% | ||
| OM | 16.24% | ||
| PM (TTM) | 13.48% | ||
| GM | 24.09% | ||
| 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-Score4
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 73.33% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.91 |
F-Score4
WACC7.29%
ROIC/WACC1.06
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)17.96%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%10.34%
EPS Next Y-2.76%
EPS Next 2Y4.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.05%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%0.31%
Revenue Next Year11.72%
Revenue Next 2Y11.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.55%
EBIT growth 3Y15.05%
EBIT growth 5Y46.17%
EBIT Next Year12.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-144.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-143.5%
OCF growth 3YN/A
OCF growth 5YN/A