Overall FOR gets a fundamental rating of 4 out of 10. We evaluated FOR against 62 industry peers in the Real Estate Management & Development industry. While FOR has a great profitability rating, there are quite some concerns on its financial health. FOR has a correct valuation and a medium growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 better Return On Assets (5.35%) than 90.32% of its industry peers.
The Return On Equity of FOR (9.50%) is better than 85.48% of its industry peers.
With a decent Return On Invested Capital value of 6.15%, FOR is doing good in the industry, outperforming 77.42% of the companies in the same industry.
FOR had an Average Return On Invested Capital over the past 3 years of 7.33%. This is in line with the industry average of 5.44%.

		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 79.03% of its industry peers.
In the last couple of years the Profit Margin of FOR has grown nicely.
FOR has a Operating Margin of 13.01%. This is amongst the best in the industry. FOR outperforms 82.26% of its industry peers.
FOR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 22.30%, FOR perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
FOR's Gross Margin has improved in the last couple of years.

		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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FOR is destroying value.
Compared to 1 year ago, FOR has more shares outstanding
FOR has more shares outstanding than it did 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 1.79, we must say that FOR is in the distress zone and has some risk of bankruptcy.
FOR has a Altman-Z score (1.79) which is comparable to the rest of the industry.
FOR has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FOR (0.45) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.45
Debt/FCF	N/A
Altman-Z	1.79

ROIC/WACC0.8

WACC7.66%

2.3 Liquidity

FOR has a Current Ratio of 0.89. 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 Current ratio, with a value of 0.89, FOR is doing worse than 82.26% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that FOR may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, FOR is not doing good in the industry: 79.03% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.89
Quick Ratio	0.89

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

FOR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.00%.
FOR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.29% yearly.
Looking at the last year, FOR shows a quite strong growth in Revenue. The Revenue has grown by 15.89% 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)-6%

EPS 3Y-3.21%

EPS 5Y22.29%

EPS Q2Q%-6.25%

Revenue 1Y (TTM)15.89%

Revenue growth 3Y3.05%

Revenue growth 5Y12.27%

Sales Q2Q%9.03%

3.2 Future

The Earnings Per Share is expected to grow by 3.24% on average over the next years.
The Revenue is expected to grow by 7.43% 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 Year5.75%

Revenue Next 2Y7.43%

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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

FOR is valuated cheaply with a Price/Earnings ratio of 7.91.
Based on the Price/Earnings ratio, FOR is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.32. FOR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.37, the valuation of FOR can be described as very cheap.
Based on the Price/Forward Earnings ratio, FOR is valued cheaply inside the industry as 98.39% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.57. FOR is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	7.91
Fwd PE	7.37

4.2 Price Multiples

95.16% 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	7.95

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)0.35

EPS Next 2Y3.24%

EPS Next 3YN/A

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

FOR does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	0%

More info and screens

Find the best dividend stocks

Show peers with best dividend

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 7.91 and the Price/Book (PB) ratio is 0.75.

How financially healthy is FORESTAR GROUP INC?

The financial health rating of FORESTAR GROUP INC (FOR) is 1 / 10.