A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
Forestar Group Inc.
FOR
$1.4B
Mkt Cap
$28.32
+1.47%
Forestar Group Inc. (FOR) has a current P/E ratio of 8.7, compared to its historical median P/E of 8.4. The stock is currently considered Fair based on its historical valuation range.
Forestar Group Inc. (FOR) has a 5-year average return on invested capital (ROIC) of 10.2%. This indicates solid capital allocation.
Forestar Group Inc. (FOR) has a market capitalization of $1.4B. It is classified as a small-cap stock.
Forestar Group Inc. (FOR) does not currently pay a regular dividend.
Based on historical P/E analysis, Forestar Group Inc. (FOR) appears fair. The current P/E of 8.7 is 3% above its historical median of 8.4. The estimated fair value CAGR (P/E method) is 25.7%.
Forestar Group Inc. (FOR) operates in the Real Estate industry, within the Real Estate sector.
Forestar Group Inc. (FOR) reported annual revenue of $1.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Item 1. Business. Forestar Group Inc. is a national, well-capitalized residential lot development company focused primarily on making investments in land acquisition and development to sell finished single-family residential lots to homebuilders. Our common stock is listed on the New York Stock Exchange (NYSE) and the NYSE Texas under the ticker symbol "FOR." The listing and trading of the Common Stock on the NYSE Texas commenced on July 1, 2025. The terms "Forestar," the "Company," "we" and "our" used herein refer to Forestar Group Inc., a Delaware corporation, and its predecessors and subsidiaries. We conduct a wide range of project planning and management activities related to the entitlement, acquisition, community development and sale of residential lots. We generally secure entitlements while the land is under contract by creating plans that meet the needs of the markets where we operate, and we aim to have all entitlements secured before closing on the investment.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.7B | 1.7B | 1.5B | 1.4B | 1.5B | 1.3B |
| Net Income | 167M | 168M | 203M | 167M | 179M | 110M |
| EPS | $3.29 | $3.29 | $4.00 | $3.33 | $3.59 | $2.25 |
| Free Cash Flow | 265M | -200M | -161M | 363M | 105M | -305M |
| ROIC | 0.0% | 8.4% | 12.5% | 10.8% | 11.2% | 8.2% |
| Gross Margin | - | 21.7% | 23.6% | 21.0% | 21.2% | 17.1% |
| Debt/Equity | 0.44 | 0.45 | 0.44 | 0.51 | 0.59 | 0.69 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 0 | 219M | 270M | 222M | 236M | 146M |
| Operating Margin | 0.0% | 13.2% | 17.9% | 15.4% | 15.5% | 11.0% |
| ROE | 9.2% | 10.0% | 13.7% | 13.0% | 16.2% | 11.7% |
| Shares Outstanding | 51M | 51M | 51M | 50M | 50M | 49M |
| Metric | 2018 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 238M | 219M | 197M | 114M | 12M | 428M | 932M | 1.3B | 1.5B | 1.4B | 1.5B | 1.7B | 1.7B |
| Gross Margin | 39.3% | 38.3% | 7.7% | 1.5% | N/A | 13.8% | 12.1% | 17.1% | 21.2% | 21.0% | 23.6% | 21.7% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 22M | 27M | 22M | 75M | N/A | 29M | 46M | 68M | 94M | 98M | 119M | 154M | 154M |
| EBIT | 71M | 24M | 140M | 40M | N/A | 42M | 77M | 146M | 236M | 222M | 270M | 219M | 0 |
| Op. Margin | 29.6% | 11.0% | 71.1% | 34.8% | N/A | 9.9% | 8.3% | 11.0% | 15.5% | 15.4% | 17.9% | 13.2% | 0.0% |
| Net Income | 30M | -213M | 62M | 50M | N/A | 33M | 61M | 110M | 179M | 167M | 203M | 168M | 167M |
| Net Margin | 12.4% | -97.5% | 31.4% | 44.0% | N/A | 7.7% | 6.5% | 8.3% | 11.8% | 11.6% | 13.5% | 10.1% | 9.8% |
| Non-Recurring | 45M | 114M | 231M | 161M | 0 | 4.3M | 100K | 2.5M | 7.0M | 21M | 9.5M | 4.5M | 4.5M |
| Returns on Capital | |||||||||||||
| ROIC | 4.9% | 1.6% | 19.6% | 6.0% | N/A | 5.0% | 6.1% | 8.2% | 11.2% | 10.8% | 12.5% | 8.4% | 0.0% |
| ROE | 4.2% | -35.2% | 11.7% | 8.6% | N/A | 4.5% | 7.2% | 11.7% | 16.2% | 13.0% | 13.7% | 10.0% | 9.2% |
| ROA | 2.4% | -19.1% | 7.3% | 6.7% | N/A | 2.8% | 3.8% | 5.7% | 8.0% | 6.9% | 7.7% | 5.6% | 5.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 107M | 35M | 67M | -15M | 0 | -391M | -168M | -303M | 109M | 364M | -158M | -198M | 267M |
| Free Cash Flow | 91M | 20M | 61M | -15M | N/A | -392M | -169M | -305M | 105M | 363M | -161M | -200M | 265M |
| Owner Earnings | 62M | -14M | 51M | -27M | -1.8M | -399M | -175M | -308M | 103M | 357M | -167M | -209M | 256M |
| CapEx | 16M | 15M | 6.1M | 100K | 0 | 900K | 600K | 1.6M | 3.5M | 1.3M | 2.2M | 2.2M | 1.8M |
| Maint. CapEx | 42M | 45M | 11M | 5.5M | 1.7M | 6.7M | 4.9M | 2.7M | 2.7M | 3.0M | 3.0M | 3.5M | 3.3M |
| Growth CapEx | 0 | 0 | 0 | 0 | N/A | 0 | 0 | 0 | 800K | 0 | 0 | 0 | 0 |
| D&A | 42M | 45M | 11M | 5.5M | 1.7M | 6.7M | 4.9M | 2.7M | 2.7M | 3.0M | 3.0M | 3.5M | 3.3M |
| CapEx/OCF | 15.3% | 41.8% | 9.2% | N/A | N/A | N/A | N/A | N/A | 3.2% | 0.4% | N/A | N/A | 0.7% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 25M | 0 | 3.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 3.1% | N/A | 0.7% | N/A | 0.0% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 3.4M | 4.2M | 4.0M | 6.6M | 87K | 1.3M | 2.0M | 2.6M | 3.3M | 4.3M | 5.3M | 7.3M | 8.0M |
| Debt Repayment | 225M | 58M | 315M | 10M | 0 | 85M | 0 | 58M | 0 | 13M | 0 | 680M | 680M |
| Balance Sheet | |||||||||||||
| Net Debt | 263M | 285M | -155M | -213M | -207M | 78M | 247M | 551M | 441M | 79M | 225M | 424M | 431M |
| Cash & Equiv. | 170M | 96M | 266M | 322M | 319M | 383M | 394M | 154M | 265M | 616M | 481M | 379M | 362M |
| Long-Term Debt | 433M | 382M | 110M | 108M | 112M | 461M | 641M | 705M | 706M | 695M | 706M | 803M | 794M |
| Debt/Equity | 0.61 | 0.76 | 0.20 | 0.18 | 0.17 | 0.57 | 0.74 | 0.69 | 0.59 | 0.51 | 0.44 | 0.45 | 0.44 |
| Interest Coverage | 2.3 | 0.7 | 7.0 | 4.7 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Equity | 707M | 502M | 561M | 604M | 673M | 808M | 871M | 1.0B | 1.2B | 1.4B | 1.6B | 1.8B | 1.8B |
| Total Assets | 1.3B | 972M | 733M | 762M | 893M | 1.5B | 1.7B | 2.1B | 2.3B | 2.5B | 2.8B | 3.1B | 3.2B |
| Total Liabilities | 548M | 468M | 171M | 156M | 219M | 647M | 868M | 1.1B | 1.1B | 1.1B | 1.2B | 1.4B | 1.4B |
| Intangibles | 2.7M | 1.7M | 0 | 448K | 1.0M | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 167M | -46M | 13M | 56M | 125M | 158M | 219M | 329M | 508M | 675M | 878M | 1.0B | 1.1B |
| Working Capital | N/A | N/A | N/A | 31M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | 40M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | 9.0M | 50M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 79M |
| Per Share Data | |||||||||||||
| EPS | 0.38 | -6.22 | 1.38 | 1.19 | N/A | 0.79 | 1.26 | 2.25 | 3.59 | 3.33 | 4.00 | 3.29 | 3.29 |
| Owner EPS | 0.80 | -0.41 | 1.14 | -0.65 | N/A | -9.56 | -3.63 | -6.30 | 2.06 | 7.12 | -3.28 | -4.09 | 5.01 |
| Book Value | 9.08 | 14.64 | 12.47 | 14.29 | N/A | 19.35 | 18.05 | 20.72 | 24.06 | 27.31 | 31.35 | 34.64 | 35.66 |
| Cash Flow/Share | 1.37 | 1.03 | 1.49 | -0.36 | N/A | -9.37 | -3.49 | -6.19 | 2.18 | 7.26 | -3.12 | -3.87 | 3.34 |
| Dividends/Share | N/A | N/A | N/A | N/A | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 77.9M | 34.3M | 44.9M | 42.3M | N/A | 41.8M | 48.3M | 49.0M | 49.8M | 50.1M | 50.9M | 51.0M | 51.0M |
| Valuation | |||||||||||||
| P/E Ratio | 47.1 | N/A | 8.6 | 14.5 | N/A | 22.3 | 14.7 | 8.4 | 3.3 | 8.3 | 8.1 | 8.0 | 8.6 |
| P/FCF | 15.4 | 22.9 | 8.7 | N/A | N/A | N/A | N/A | N/A | 5.6 | 3.8 | N/A | N/A | 5.4 |
| EV/EBIT | 26.9 | 31.5 | 2.5 | 12.9 | N/A | 148.2 | 14.8 | 9.0 | 4.4 | 6.6 | 7.0 | 8.1 | N/A |
| Price/Book | 1.1 | 0.9 | 0.9 | 1.2 | N/A | 0.9 | 1.0 | 0.9 | 0.5 | 1.0 | 1.0 | 0.8 | 0.8 |
| Price/Sales | 2.8 | 2.3 | 2.6 | 5.3 | N/A | 1.7 | 0.9 | 0.8 | 0.6 | 0.7 | 1.1 | 0.8 | 0.8 |
| FCF Yield | 11.6% | 4.4% | 12.1% | -2.1% | N/A | -53.2% | -18.9% | -33.0% | 18.0% | 26.3% | -9.7% | -14.9% | 18.4% |
| Market Cap | 781M | 468M | 501M | 726M | 0 | 737M | 892M | 925M | 586M | 1.4B | 1.7B | 1.3B | 1.4B |
| Avg. Price | 19.33 | 14.60 | 11.96 | 14.36 | 0.00 | 17.81 | 17.26 | 21.22 | 17.08 | 18.77 | 31.96 | 24.70 | 28.32 |
| Year-End Price | 17.90 | 13.67 | 11.80 | 17.20 | 0.00 | 17.65 | 18.49 | 18.88 | 11.76 | 27.53 | 32.56 | 26.35 | 28.32 |
Forestar Group Inc. passes 5 of 9 quality checks, suggesting mixed fundamentals.
Forestar Group Inc. trades at 8.7x trailing earnings, compared to its 15-year median P/E of 8.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 15.5x vs a median of 5.6x. The company's 5-year average ROIC is 10.2% with a gross margin of 20.9%. At current prices, the estimated annualized return to fair value is +41.1%.
Forestar Group Inc. (FOR) has a net profit margin of 10.1%. This is a healthy margin.
Forestar Group Inc. (FOR) generated $-200 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
Forestar Group Inc. (FOR) has a debt-to-equity ratio of 0.45. This indicates a conservatively financed balance sheet.
Forestar Group Inc. (FOR) reported earnings per share (EPS) of $3.29 in its most recent fiscal year.
Forestar Group Inc. (FOR) has a return on equity (ROE) of 10.0%. This indicates moderate shareholder returns.
Forestar Group Inc. (FOR) has a 5-year average gross margin of 20.9%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 17 years of financial data for Forestar Group Inc. (FOR), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Forestar Group Inc. (FOR) has a book value per share of $34.64, based on its most recent annual SEC filing.