FORESTAR GROUP INC (FOR) Stock Fundamental Analysis
USA - NYSE:FOR - US3462321015 - Common Stock
24.73 USD
+0.08 (+0.32%)
24.73 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to FOR. FOR was compared to 63 industry peers in the Real Estate Management & Development industry. While FOR belongs to the best of the industry regarding profitability, 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.
In the past 5 years FOR has always been profitable.
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 5.21%, FOR belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
FOR has a Return On Equity of 9.68%. This is amongst the best in the industry. FOR outperforms 82.54% of its industry peers.
FOR's Return On Invested Capital of 6.00% is fine compared to the rest of the industry. FOR outperforms 79.37% 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 6.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 9.68% | ||
| ROIC | 6% |
ROA(3y)6.42%
ROA(5y)6.43%
ROE(3y)11.48%
ROE(5y)12.05%
ROIC(3y)7.27%
ROIC(5y)7.56%
1.3 Margins
FOR has a better Profit Margin (10.54%) than 80.95% of its industry peers.
In the last couple of years the Profit Margin of FOR has grown nicely.
FOR's Operating Margin of 13.54% is fine compared to the rest of the industry. FOR outperforms 79.37% of its industry peers.
In the last couple of years the Operating Margin of FOR has grown nicely.
The Gross Margin of FOR (22.86%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FOR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.54% | ||
| PM (TTM) | 10.54% | ||
| GM | 22.86% |
OM growth 3Y-6.56%
OM growth 5Y10.11%
PM growth 3Y-4.97%
PM growth 5Y9.13%
GM growth 3Y0.44%
GM growth 5Y11.52%
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.
FOR has more shares outstanding than it did 5 years ago.
FOR has a worse debt/assets ratio than last year.
2.2 Solvency
FOR has an Altman-Z score of 1.58. This is a bad value and indicates that FOR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.58, FOR is in line with its industry, outperforming 52.38% of the companies in the same industry.
FOR has a Debt/Equity ratio of 0.52. This is a neutral value indicating FOR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, FOR perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.58 |
ROIC/WACC0.76
WACC7.85%
2.3 Liquidity
FOR has a Current Ratio of 0.51. This is a bad value and indicates that FOR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of FOR (0.51) is worse than 84.13% of its industry peers.
A Quick Ratio of 0.51 indicates that FOR may have some problems paying its short term obligations.
FOR has a worse Quick ratio (0.51) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
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%.
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.
FOR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.13%.
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
The Earnings Per Share is expected to grow by 5.75% on average over the next years.
Based on estimates for the next years, FOR will show a quite strong growth in Revenue. The Revenue will grow by 8.29% on average per year.
EPS Next Y-7.04%
EPS Next 2Y5.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.61%
Revenue Next 2Y8.29%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.47, which indicates a rather cheap valuation of FOR.
Compared to the rest of the industry, the Price/Earnings ratio of FOR indicates a rather cheap valuation: FOR is cheaper than 93.65% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FOR to the average of the S&P500 Index (26.34), we can say FOR is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.04, the valuation of FOR can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FOR indicates a rather cheap valuation: FOR is cheaper than 98.41% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. FOR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 8.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOR is valued cheaply inside the industry as 93.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.12 |
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)0.34
EPS Next 2Y5.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FOR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.73
+0.08 (+0.32%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners36.48%
Inst Owner Change2.28%
Ins Owners0.45%
Ins Owner Change-1.01%
Market Cap1.26B
Revenue(TTM)1.66B
Net Income(TTM)162.60M
Analysts82.5
Price Target31.96 (29.24%)
Short Float %4.34%
Short Ratio6.16
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)0
Avg EPS beat(2)-16.41%
Min EPS beat(2)-19.97%
Max EPS beat(2)-12.84%
EPS beat(4)1
Avg EPS beat(4)-16.63%
Min EPS beat(4)-54.74%
Max EPS beat(4)21.02%
EPS beat(8)4
Avg EPS beat(8)4.45%
EPS beat(12)7
Avg EPS beat(12)19.73%
EPS beat(16)10
Avg EPS beat(16)19.15%
Revenue beat(2)0
Avg Revenue beat(2)-4.73%
Min Revenue beat(2)-8.45%
Max Revenue beat(2)-1.01%
Revenue beat(4)1
Avg Revenue beat(4)-6.42%
Min Revenue beat(4)-24.59%
Max Revenue beat(4)8.37%
Revenue beat(8)4
Avg Revenue beat(8)0.81%
Revenue beat(12)7
Avg Revenue beat(12)6.45%
Revenue beat(16)10
Avg Revenue beat(16)4.73%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-9.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 8.04 | ||
| P/S | 0.81 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.75 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 9.12 |
EPS(TTM)3.31
EY13.38%
EPS(NY)3.08
Fwd EY12.44%
FCF(TTM)-6.63
FCFYN/A
OCF(TTM)-6.59
OCFYN/A
SpS30.36
BVpS33.04
TBVpS33.04
PEG (NY)N/A
PEG (5Y)0.34
Graham Number49.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 9.68% | ||
| ROCE | 7.9% | ||
| ROIC | 6% | ||
| ROICexc | 6.46% | ||
| ROICexgc | 6.56% | ||
| OM | 13.54% | ||
| PM (TTM) | 10.54% | ||
| GM | 22.86% | ||
| FCFM | N/A |
ROA(3y)6.42%
ROA(5y)6.43%
ROE(3y)11.48%
ROE(5y)12.05%
ROIC(3y)7.27%
ROIC(5y)7.56%
ROICexc(3y)9.35%
ROICexc(5y)9.23%
ROICexgc(3y)9.53%
ROICexgc(5y)9.36%
ROCE(3y)9.58%
ROCE(5y)9.96%
ROICexgc growth 3Y-11.52%
ROICexgc growth 5Y8.52%
ROICexc growth 3Y-12.69%
ROICexc growth 5Y7.72%
OM growth 3Y-6.56%
OM growth 5Y10.11%
PM growth 3Y-4.97%
PM growth 5Y9.13%
GM growth 3Y0.44%
GM growth 5Y11.52%
F-Score2
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 69.7% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.58 |
F-Score2
WACC7.85%
ROIC/WACC0.76
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
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-7.04%
EPS Next 2Y5.75%
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 Year7.61%
Revenue Next 2Y8.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-9.68%
EBIT growth 3Y-3.71%
EBIT growth 5Y23.63%
EBIT Next Year16.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-553.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-573.64%
OCF growth 3YN/A
OCF growth 5YN/A
FORESTAR GROUP INC / FOR FAQ
Can you provide the ChartMill fundamental rating for FORESTAR GROUP INC?
ChartMill assigns a fundamental rating of 4 / 10 to FOR.
What is the valuation status for FOR stock?
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.
Can you provide the financial health for FOR stock?
The financial health rating of FORESTAR GROUP INC (FOR) is 1 / 10.