FORESTAR GROUP INC (FOR) Stock Fundamental Analysis
USA - NYSE:FOR - US3462321015 - Common Stock
26.75 USD
-0.33 (-1.22%)
26.75 USD
0 (0%)
Overall FOR gets a fundamental rating of 4 out of 10. We evaluated FOR against 63 industry peers in the Real Estate Management & Development industry. FOR has an excellent profitability rating, 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
In the past year FOR was profitable.
In the past year FOR has reported a negative cash flow from operations.
FOR had positive earnings in each of the past 5 years.
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
FOR has a Return On Assets of 5.21%. This is amongst the best in the industry. FOR outperforms 90.48% of its industry peers.
With an excellent Return On Equity value of 9.68%, FOR belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
FOR's Return On Invested Capital of 5.95% is amongst the best of the industry. FOR outperforms 80.95% of its industry peers.
FOR had an Average Return On Invested Capital over the past 3 years of 8.23%. This is in line with the industry average of 6.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 9.68% | ||
| ROIC | 5.95% |
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
Looking at the Profit Margin, with a value of 10.54%, FOR is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
In the last couple of years the Profit Margin of FOR has grown nicely.
With a decent Operating Margin value of 13.54%, FOR is doing good in the industry, outperforming 77.78% 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 22.86%. This is comparable to the rest of the industry: FOR outperforms 49.21% of its industry peers.
FOR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.54% | ||
| PM (TTM) | 10.54% | ||
| GM | 22.86% |
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) below the Cost of Capital (WACC), FOR is destroying value.
FOR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FOR has been increased compared to 5 years ago.
FOR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that FOR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.63, FOR perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that 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 | 1.63 |
ROIC/WACC0.67
WACC8.85%
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.
With a Current ratio value of 0.51, FOR is not doing good in the industry: 82.54% of the companies in the same industry are doing better.
A Quick Ratio of 0.51 indicates that FOR may have some problems paying its short term obligations.
FOR's Quick ratio of 0.51 is on the low side compared to the rest of the industry. FOR is outperformed by 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for FOR have decreased strongly by -15.30% in the last year.
FOR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.52% yearly.
The Revenue has been growing slightly by 2.35% in the past year.
FOR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.65% yearly.
EPS 1Y (TTM)-15.3%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%-5.8%
Revenue 1Y (TTM)2.35%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%22.64%
3.2 Future
FOR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.42% yearly.
The Revenue is expected to grow by 10.10% on average over the next years. This is quite good.
EPS Next Y-27.45%
EPS Next 2Y-11.19%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y6.97%
Revenue Next 3Y10.1%
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
With a Price/Earnings ratio of 8.33, the valuation of FOR can be described as very reasonable.
Based on the Price/Earnings ratio, FOR is valued cheaper than 95.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. FOR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.61, 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.
FOR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FOR indicates a rather cheap valuation: FOR is cheaper than 95.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.7 |
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)0.27
EPS Next 2Y-11.19%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
No dividends for FOR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.75
-0.33 (-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 Owners35.51%
Inst Owner Change1.6%
Ins Owners0.49%
Ins Owner Change1.4%
Market Cap1.36B
Analysts82.5
Price Target31.96 (19.48%)
Short Float %4.59%
Short Ratio4.89
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)11.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.19%
EPS NY rev (1m)-6.6%
EPS NY rev (3m)-6.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 8.61 | ||
| P/S | 0.88 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.81 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 9.7 |
EPS(TTM)3.21
EY12%
EPS(NY)3.11
Fwd EY11.62%
FCF(TTM)-6.63
FCFYN/A
OCF(TTM)-6.59
OCFYN/A
SpS30.36
BVpS33.04
TBVpS33.04
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 9.68% | ||
| ROCE | 7.9% | ||
| ROIC | 5.95% | ||
| ROICexc | 6.41% | ||
| ROICexgc | 6.5% | ||
| OM | 13.54% | ||
| PM (TTM) | 10.54% | ||
| GM | 22.86% | ||
| 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-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 | 1.63 |
F-Score2
WACC8.85%
ROIC/WACC0.67
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)-15.3%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%-5.8%
EPS Next Y-27.45%
EPS Next 2Y-11.19%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue 1Y (TTM)2.35%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%22.64%
Revenue Next Year5.96%
Revenue Next 2Y6.97%
Revenue Next 3Y10.1%
Revenue Next 5YN/A
EBIT growth 1Y-9.68%
EBIT growth 3Y15.05%
EBIT growth 5Y46.17%
EBIT Next Year-15.26%
EBIT Next 3Y12.12%
EBIT Next 5YN/A
FCF growth 1Y-232.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-231.24%
OCF growth 3YN/A
OCF growth 5YN/A