FORESTAR GROUP INC (FOR) Stock Fundamental Analysis
NYSE:FOR - New York Stock Exchange, Inc. - US3462321015 - Common Stock
We assign a fundamental rating of 5 out of 10 to FOR. FOR was compared to 65 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
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
With an excellent Return On Assets value of 7.17%, FOR belongs to the best of the industry, outperforming 91.80% of the companies in the same industry.
FOR has a Return On Equity of 12.77%. This is amongst the best in the industry. FOR outperforms 93.44% of its industry peers.
FOR has a better Return On Invested Capital (7.75%) than 93.44% of its industry peers.
FOR had an Average Return On Invested Capital over the past 3 years of 8.23%. This is above the industry average of 4.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 12.77% | ||
| ROIC | 7.75% |
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
FOR has a better Profit Margin (13.48%) than 86.89% of its industry peers.
FOR's Profit Margin has improved in the last couple of years.
FOR has a Operating Margin of 16.24%. This is amongst the best in the industry. FOR outperforms 85.25% of its industry peers.
FOR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.09%, FOR is in line with its industry, outperforming 47.54% 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 | 16.24% | ||
| PM (TTM) | 13.48% | ||
| GM | 24.09% |
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
FOR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FOR has more shares outstanding
Compared to 5 years ago, FOR has more shares outstanding
The debt/assets ratio for FOR has been reduced compared to a year ago.
2.2 Solvency
FOR has an Altman-Z score of 1.87. This is not the best score and indicates that FOR is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.87, FOR is doing good in the industry, outperforming 60.66% of the companies in the same industry.
FOR has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FOR (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.87 |
ROIC/WACC1.07
WACC7.27%
2.3 Liquidity
FOR has a Current Ratio of 1.16. This is a normal value and indicates that FOR is financially healthy and should not expect problems in meeting its short term obligations.
FOR's Current ratio of 1.16 is on the low side compared to the rest of the industry. FOR is outperformed by 65.57% of its industry peers.
FOR has a Quick Ratio of 1.16. This is a normal value and indicates that FOR is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.16, FOR perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
FOR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.89%.
FOR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.52% yearly.
Looking at the last year, FOR shows a small growth in Revenue. The Revenue has grown by 5.05% in the last year.
The Revenue has been growing by 28.65% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-4.89%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%-57.89%
Revenue 1Y (TTM)5.05%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%-18.14%
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 4.87% on average per year.
FOR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.77% yearly.
EPS Next Y-2.76%
EPS Next 2Y4.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.86%
Revenue Next 2Y11.77%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.87 indicates a rather cheap valuation of FOR.
FOR's Price/Earnings ratio is rather cheap when compared to the industry. FOR is cheaper than 91.80% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, FOR is valued rather cheaply.
A Price/Forward Earnings ratio of 5.55 indicates a rather cheap valuation of FOR.
Based on the Price/Forward Earnings ratio, FOR is valued cheaply inside the industry as 98.36% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FOR to the average of the S&P500 Index (24.44), we can say FOR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.87 | ||
| Fwd PE | 5.55 |
4.2 Price Multiples
FOR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FOR is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.86 |
4.3 Compensation for Growth
FOR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y4.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FOR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FORESTAR GROUP INC
NYSE:FOR (1/22/2025, 2:42:43 PM)
24.035
-0.23 (-0.97%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners36.8%
Inst Owner Change-0.03%
Ins Owners0.41%
Ins Owner Change0.73%
Market Cap1.22B
Analysts85
Price Target40.55 (68.71%)
Short Float %2.13%
Short Ratio3.03
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)1
Avg EPS beat(2)-0.81%
Min EPS beat(2)-22.63%
Max EPS beat(2)21.02%
EPS beat(4)3
Avg EPS beat(4)17.56%
Min EPS beat(4)-22.63%
Max EPS beat(4)50.19%
EPS beat(8)6
Avg EPS beat(8)26.87%
EPS beat(12)9
Avg EPS beat(12)31.7%
EPS beat(16)13
Avg EPS beat(16)31.6%
Revenue beat(2)1
Avg Revenue beat(2)-4.25%
Min Revenue beat(2)-16.86%
Max Revenue beat(2)8.37%
Revenue beat(4)3
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-16.86%
Max Revenue beat(4)11.2%
Revenue beat(8)6
Avg Revenue beat(8)10.15%
Revenue beat(12)9
Avg Revenue beat(12)8.92%
Revenue beat(16)12
Avg Revenue beat(16)7.9%
PT rev (1m)0%
PT rev (3m)0.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.87 | ||
| Fwd PE | 5.55 | ||
| P/S | 0.81 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 5.86 |
EPS(TTM)3.5
EY14.56%
EPS(NY)4.33
Fwd EY18.03%
FCF(TTM)-3.17
FCFYN/A
OCF(TTM)-3.13
OCFYN/A
SpS29.79
BVpS31.46
TBVpS31.46
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 12.77% | ||
| ROCE | 10.29% | ||
| ROIC | 7.75% | ||
| ROICexc | 9.71% | ||
| ROICexgc | 9.84% | ||
| OM | 16.24% | ||
| PM (TTM) | 13.48% | ||
| GM | 24.09% | ||
| 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-Score4
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 73.33% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.87 |
F-Score4
WACC7.27%
ROIC/WACC1.07
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)-4.89%
EPS 3Y16.53%
EPS 5Y30.52%
EPS Q2Q%-57.89%
EPS Next Y-2.76%
EPS Next 2Y4.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.05%
Revenue growth 3Y4.42%
Revenue growth 5Y28.65%
Sales Q2Q%-18.14%
Revenue Next Year11.86%
Revenue Next 2Y11.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.55%
EBIT growth 3Y15.05%
EBIT growth 5Y46.17%
EBIT Next Year13.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-144.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-143.5%
OCF growth 3YN/A
OCF growth 5YN/A