FORESTAR GROUP INC (FOR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FOR - US3462321015 - Common Stock
24.63 USD
-0.19 (-0.77%)
24.63 USD
0 (0%)
Taking everything into account, FOR scores 4 out of 10 in our fundamental rating. FOR was compared to 63 industry peers in the Real Estate Management & Development industry. FOR scores excellent on profitability, but there are concerns on its financial health. FOR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FOR was profitable.
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
The Return On Assets of FOR (5.35%) is better than 90.48% of its industry peers.
Looking at the Return On Equity, with a value of 9.50%, FOR belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
FOR has a Return On Invested Capital of 6.15%. This is in the better half of the industry: FOR outperforms 77.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FOR is in line with the industry average of 5.35%.
| 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 has a better Profit Margin (10.10%) than 79.37% 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 82.54% of the companies in the same industry.
FOR's Operating Margin has improved in the last couple of years.
FOR has a Gross Margin of 22.30%. This is comparable to the rest of the industry: FOR outperforms 50.79% of its industry peers.
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%
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.
Compared to 1 year ago, FOR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that FOR is in the distress zone and 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 49.21% of its industry peers.
FOR has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
FOR has a Debt to Equity ratio (0.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.75 |
ROIC/WACC0.79
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.89 indicates that FOR may have some problems paying its short term obligations.
FOR's Current ratio of 0.89 is on the low side compared to the rest of the industry. FOR is outperformed by 80.95% of its industry peers.
A Quick Ratio of 0.89 indicates that FOR may have some problems paying its short term obligations.
FOR's Quick ratio of 0.89 is on the low side compared to the rest of the industry. FOR is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
FOR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.99%.
The Earnings Per Share has been growing by 22.29% on average over the past years. This is a very strong growth
Looking at the last year, FOR shows a quite strong growth in Revenue. The Revenue has grown by 10.13% 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)-15.99%
EPS 3Y-3.21%
EPS 5Y22.29%
EPS Q2Q%6.25%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y3.05%
Revenue growth 5Y12.27%
Sales Q2Q%21.6%
3.2 Future
FOR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.24% yearly.
The Revenue is expected to grow by 7.81% on average over the next years.
EPS Next Y-7.65%
EPS Next 2Y3.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.91%
Revenue Next 2Y7.81%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.44 indicates a rather cheap valuation of FOR.
Based on the Price/Earnings ratio, FOR is valued cheaply inside the industry as 93.65% of the companies are valued more expensively.
FOR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
FOR is valuated reasonably with a Price/Forward Earnings ratio of 8.06.
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.
The average S&P500 Price/Forward Earnings ratio is at 23.13. FOR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.44 | ||
| Fwd PE | 8.06 |
4.2 Price Multiples
FOR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FOR is cheaper than 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.62 |
4.3 Compensation for Growth
FOR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y3.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FOR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
24.63
-0.19 (-0.77%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners37.06%
Inst Owner Change2.79%
Ins Owners0.5%
Ins Owner Change0.34%
Market Cap1.25B
Revenue(TTM)1.66B
Net Income(TTM)167.90M
Analysts82.5
Price Target33.15 (34.59%)
Short Float %2.82%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)10.25%
Min EPS beat(2)-12.84%
Max EPS beat(2)33.35%
EPS beat(4)1
Avg EPS beat(4)-13.55%
Min EPS beat(4)-54.74%
Max EPS beat(4)33.35%
EPS beat(8)4
Avg EPS beat(8)2.01%
EPS beat(12)7
Avg EPS beat(12)13.4%
EPS beat(16)10
Avg EPS beat(16)20.39%
Revenue beat(2)1
Avg Revenue beat(2)9.13%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)19.27%
Revenue beat(4)1
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-24.59%
Max Revenue beat(4)19.27%
Revenue beat(8)4
Avg Revenue beat(8)-1.33%
Revenue beat(12)7
Avg Revenue beat(12)5.53%
Revenue beat(16)10
Avg Revenue beat(16)5.76%
PT rev (1m)0%
PT rev (3m)3.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.47%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)-2.42%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.44 | ||
| Fwd PE | 8.06 | ||
| P/S | 0.75 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.71 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 7.62 |
EPS(TTM)3.31
EY13.44%
EPS(NY)3.06
Fwd EY12.41%
FCF(TTM)-3.93
FCFYN/A
OCF(TTM)-3.89
OCFYN/A
SpS32.7
BVpS34.77
TBVpS34.77
PEG (NY)N/A
PEG (5Y)0.33
Graham Number50.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 9.5% | ||
| ROCE | 8.1% | ||
| ROIC | 6.15% | ||
| ROICexc | 7.17% | ||
| ROICexgc | 7.33% | ||
| OM | 13.01% | ||
| PM (TTM) | 10.1% | ||
| GM | 22.3% | ||
| FCFM | N/A |
ROA(3y)6.42%
ROA(5y)6.43%
ROE(3y)11.48%
ROE(5y)12.05%
ROIC(3y)7.33%
ROIC(5y)7.6%
ROICexc(3y)9.42%
ROICexc(5y)9.27%
ROICexgc(3y)9.54%
ROICexgc(5y)9.37%
ROCE(3y)9.66%
ROCE(5y)10.01%
ROICexgc growth 3Y-11.4%
ROICexgc growth 5Y8.61%
ROICexc growth 3Y-11.87%
ROICexc growth 5Y8.33%
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%
F-Score1
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.65 | ||
| Cap/Depr | 62.86% | ||
| Cap/Sales | 0.13% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.75 |
F-Score1
WACC7.83%
ROIC/WACC0.79
Cap/Depr(3y)59.84%
Cap/Depr(5y)73.68%
Cap/Sales(3y)0.12%
Cap/Sales(5y)0.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.99%
EPS 3Y-3.21%
EPS 5Y22.29%
EPS Q2Q%6.25%
EPS Next Y-7.65%
EPS Next 2Y3.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.13%
Revenue growth 3Y3.05%
Revenue growth 5Y12.27%
Sales Q2Q%21.6%
Revenue Next Year6.91%
Revenue Next 2Y7.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-11.75%
EBIT growth 3Y-2.62%
EBIT growth 5Y24.47%
EBIT Next Year12.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.81%
OCF growth 3YN/A
OCF growth 5YN/A
FORESTAR GROUP INC / FOR FAQ
What is the ChartMill fundamental rating of FORESTAR GROUP INC (FOR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to FOR.
Can you provide the valuation status for FORESTAR GROUP INC?
ChartMill assigns a valuation rating of 6 / 10 to FORESTAR GROUP INC (FOR). This can be considered as Fairly Valued.
How profitable is FORESTAR GROUP INC (FOR) stock?
FORESTAR GROUP INC (FOR) has a profitability rating of 7 / 10.
What is the valuation of FORESTAR GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FORESTAR GROUP INC (FOR) is 7.44 and the Price/Book (PB) ratio is 0.71.
How financially healthy is FORESTAR GROUP INC?
The financial health rating of FORESTAR GROUP INC (FOR) is 1 / 10.