FORESTAR GROUP INC (FOR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FOR - US3462321015 - Common Stock
25.52 USD
-0.27 (-1.05%)
25.52 USD
0 (0%)
Overall FOR gets a fundamental rating of 4 out of 10. We evaluated FOR against 64 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FOR was profitable.
FOR had a negative operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 5.21%, FOR belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
FOR's Return On Equity of 9.68% is amongst the best of the industry. FOR outperforms 82.81% of its industry peers.
FOR has a better Return On Invested Capital (6.00%) than 78.13% 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 6.42%.
| 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 Profit Margin of 10.54%. This is in the better half of the industry: FOR outperforms 79.69% of its industry peers.
FOR's Profit Margin has improved in the last couple of years.
The Operating Margin of FOR (13.54%) is better than 82.81% of its industry peers.
FOR's Operating Margin has improved in the last couple of years.
FOR has a Gross Margin (22.86%) which is comparable to the rest of the industry.
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 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.
FOR has more shares outstanding than it did 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
Based on the Altman-Z score of 1.60, we must say that FOR is in the distress zone and has some risk of bankruptcy.
FOR has a Altman-Z score (1.60) which is comparable to the rest of the industry.
FOR has a Debt/Equity ratio of 0.52. This is a neutral value indicating FOR is somewhat dependend on debt financing.
The Debt to Equity ratio of FOR (0.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.6 |
ROIC/WACC0.77
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.51 indicates that FOR may have some problems paying its short term obligations.
With a Current ratio value of 0.51, FOR is not doing good in the industry: 82.81% of the companies in the same industry are doing better.
FOR has a Quick 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.
Looking at the Quick ratio, with a value of 0.51, FOR is doing worse than 79.69% of the companies in the same industry.
| 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 -15.99% in the last year.
The Earnings Per Share has been growing by 22.29% on average over the past years. This is a very strong growth
The Revenue has grown by 10.13% in the past year. This is quite good.
Measured over the past years, FOR shows a quite strong growth in Revenue. The Revenue has been growing by 12.27% on average per year.
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
Based on estimates for the next years, FOR will show a small growth in Earnings Per Share. The EPS will grow by 5.75% on average per year.
FOR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.29% yearly.
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
Based on the Price/Earnings ratio of 7.71, the valuation of FOR can be described as very cheap.
Based on the Price/Earnings ratio, FOR is valued cheaply inside the industry as 93.75% 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 26.31.
A Price/Forward Earnings ratio of 8.29 indicates a reasonable valuation of FOR.
FOR's Price/Forward Earnings ratio is rather cheap when compared to the industry. FOR is cheaper than 98.44% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. FOR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.71 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOR is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
The decent profitability rating of FOR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y5.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FOR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.52
-0.27 (-1.05%)
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 Change2.8%
Ins Owners0.45%
Ins Owner Change-0.91%
Market Cap1.30B
Revenue(TTM)1.66B
Net Income(TTM)162.60M
Analysts82.5
Price Target33.15 (29.9%)
Short Float %3.52%
Short Ratio5.2
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)3.72%
PT rev (3m)3.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.71 | ||
| Fwd PE | 8.29 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.77 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)3.31
EY12.97%
EPS(NY)3.08
Fwd EY12.06%
FCF(TTM)-6.63
FCFYN/A
OCF(TTM)-6.59
OCFYN/A
SpS30.36
BVpS33.03
TBVpS33.03
PEG (NY)N/A
PEG (5Y)0.35
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 | 1.6 |
F-Score2
WACC7.78%
ROIC/WACC0.77
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.