company background image
FOR

Forestar GroupNYSE:FOR Stock Report

Market Cap

US$941.5m

7D

-3.2%

1Y

6.0%

Updated

26 Sep, 2021

Data

Company Financials +
FOR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance4/6
Financial Health1/6
Dividends0/6

FOR Overview

Forestar Group Inc. operates as a residential lot development company in the United States.

Forestar Group Competitors

Howard Hughes

NYSE:HHC

US$4.8b

Stratus Properties

NasdaqGS:STRS

US$257.3m

Texas Pacific Land

NYSE:TPL

US$10.1b

EastGroup Properties

NYSE:EGP

US$6.9b

Price History & Performance

Summary of all time highs, changes and price drops for Forestar Group
Historical stock prices
Current Share PriceUS$19.01
52 Week HighUS$16.45
52 Week LowUS$26.55
Beta2
1 Month Change-11.04%
3 Month Change-8.56%
1 Year Change5.96%
3 Year Change-10.33%
5 Year Change62.34%
Change since IPO-17.35%

Recent News & Updates

Shareholder Returns

FORUS Real EstateUS Market
7D-3.2%1.0%0.1%
1Y6.0%-5.1%35.3%

Return vs Industry: FOR exceeded the US Real Estate industry which returned -5.1% over the past year.

Return vs Market: FOR underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is FOR's price volatile compared to industry and market?
FOR volatility
FOR Beta2
Industry Beta1.61
Market Beta1

Stable Share Price: FOR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FOR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a232Dan Bartokhttps://www.forestar.com

Forestar Group Inc. operates as a residential lot development company in the United States. The acquires land and develops infrastructure for single-family residential communities. The company sells its residential single-family finished lots to homebuilders.

Forestar Group Fundamentals Summary

How do Forestar Group's earnings and revenue compare to its market cap?
FOR fundamental statistics
Market CapUS$941.51m
Earnings (TTM)US$90.50m
Revenue (TTM)US$1.25b

10.4x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FOR income statement (TTM)
RevenueUS$1.25b
Cost of RevenueUS$1.06b
Gross ProfitUS$197.40m
ExpensesUS$106.90m
EarningsUS$90.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.83
Gross Margin15.73%
Net Profit Margin7.21%
Debt/Equity Ratio72.6%

How did FOR perform over the long term?

See historical performance and comparison

Valuation

Is Forestar Group undervalued compared to its fair value and its price relative to the market?

10.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FOR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FOR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FOR is good value based on its PE Ratio (10.4x) compared to the US Real Estate industry average (26.3x).

PE vs Market: FOR is good value based on its PE Ratio (10.4x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: FOR is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: FOR is good value based on its PB Ratio (1x) compared to the US Real Estate industry average (1.5x).


Future Growth

How is Forestar Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

31.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FOR's forecast earnings growth (31.8% per year) is above the savings rate (2%).

Earnings vs Market: FOR's earnings (31.8% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FOR's revenue (19.6% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: FOR's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FOR's Return on Equity is forecast to be low in 3 years time (12%).


Past Performance

How has Forestar Group performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FOR has a high level of non-cash earnings.

Growing Profit Margin: FOR's current net profit margins (7.2%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: FOR has become profitable over the past 5 years, growing earnings by 12.6% per year.

Accelerating Growth: FOR's earnings growth over the past year (83.9%) exceeds its 5-year average (12.6% per year).

Earnings vs Industry: FOR earnings growth over the past year (83.9%) exceeded the Real Estate industry 61.9%.


Return on Equity

High ROE: FOR's Return on Equity (9.4%) is considered low.


Financial Health

How is Forestar Group's financial position?


Financial Position Analysis

Short Term Liabilities: FOR's short term assets ($140.6M) do not cover its short term liabilities ($163.2M).

Long Term Liabilities: FOR's short term assets ($140.6M) do not cover its long term liabilities ($881.4M).


Debt to Equity History and Analysis

Debt Level: FOR's debt to equity ratio (72.6%) is considered high.

Reducing Debt: FOR's debt to equity ratio has increased from 22.5% to 72.6% over the past 5 years.

Debt Coverage: FOR's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: FOR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Forestar Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FOR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FOR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FOR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FOR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FOR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Dan Bartok (65 yo)

3.75yrs

Tenure

US$1,585,588

Compensation

Mr. Daniel C. Bartok, also known as Dan, has been Chief Executive Officer of Forestar Group Inc since December 29, 2017. Mr. Bartok joins Forestar Group Inc with more than 35 years of experience in real es...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD1.59M) is below average for companies of similar size in the US market ($USD2.30M).

Compensation vs Earnings: Dan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: FOR's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: FOR's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FOR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

Forestar Group Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Forestar Group Inc.
  • Ticker: FOR
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: US$941.510m
  • Shares outstanding: 49.53m
  • Website: https://www.forestar.com

Number of Employees


Location

  • Forestar Group Inc.
  • 2221 East Lamar Boulevard
  • Suite 790
  • Arlington
  • Texas
  • 76006
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:09
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.