FORESTAR GROUP INC (FOR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FOR - US3462321015 - Common Stock
27.88 USD
+0.47 (+1.71%)
27.95 USD
+0.07 (+0.25%)
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 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.
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
FOR has a Return On Assets of 5.35%. This is amongst the best in the industry. FOR outperforms 90.48% of its industry peers.
FOR has a Return On Equity of 9.50%. This is amongst the best in the industry. FOR outperforms 85.71% of its industry peers.
The Return On Invested Capital of FOR (6.15%) is better than 77.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FOR is above the industry average of 5.30%.
| 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
Looking at the Profit Margin, with a value of 10.10%, 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.
FOR's Operating Margin of 13.01% is amongst the best of the industry. FOR outperforms 82.54% of its industry peers.
In the last couple of years the Operating Margin of FOR has grown nicely.
Looking at the Gross Margin, with a value of 22.30%, FOR is in line with its industry, outperforming 50.79% of the companies in the same industry.
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
FOR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FOR has more shares outstanding
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
An Altman-Z score of 1.82 indicates that FOR is not a great score, but indicates only limited risk for bankruptcy at the moment.
FOR's Altman-Z score of 1.82 is in line compared to the rest of the industry. FOR outperforms 52.38% 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 of 0.45. This is comparable to the rest of the industry: FOR outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.82 |
ROIC/WACC0.81
WACC7.62%
2.3 Liquidity
A Current Ratio of 0.89 indicates that FOR may have some problems paying its short term obligations.
FOR has a worse Current ratio (0.89) than 80.95% of its industry peers.
FOR has a Quick 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.
With a Quick ratio value of 0.89, FOR is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| 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%.
FOR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.29% yearly.
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 3.24% on average per year.
Based on estimates for the next years, FOR will show a small growth in Revenue. The Revenue will grow by 7.81% on average per year.
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.
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
A Price/Earnings ratio of 8.42 indicates a reasonable valuation of FOR.
93.65% of the companies in the same industry are more expensive than FOR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.25, FOR is valued rather cheaply.
The Price/Forward Earnings ratio is 9.12, which indicates a very decent valuation of FOR.
Based on the Price/Forward Earnings ratio, FOR is valued cheaper than 98.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FOR to the average of the S&P500 Index (23.98), we can say FOR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOR is valued cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
The decent profitability rating of FOR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y3.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FOR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
27.88
+0.47 (+1.71%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners36.98%
Inst Owner Change0.03%
Ins Owners0.52%
Ins Owner Change0.34%
Market Cap1.42B
Revenue(TTM)1.66B
Net Income(TTM)167.90M
Analysts82.5
Price Target33.15 (18.9%)
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%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 9.12 | ||
| P/S | 0.85 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)3.31
EY11.87%
EPS(NY)3.06
Fwd EY10.96%
FCF(TTM)-3.93
FCFYN/A
OCF(TTM)-3.89
OCFYN/A
SpS32.7
BVpS34.77
TBVpS34.77
PEG (NY)N/A
PEG (5Y)0.38
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 | 1.82 |
F-Score1
WACC7.62%
ROIC/WACC0.81
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 8.42 and the Price/Book (PB) ratio is 0.8.
How financially healthy is FORESTAR GROUP INC?
The financial health rating of FORESTAR GROUP INC (FOR) is 1 / 10.