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Forestar Group Inc. (FOR) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Forestar Group Inc.

FORMarket cap $1.34BPrice $26.3

Country🇺🇸United States

SectorReal Estate

IndustryReal Estate Dev

Buys and develops raw land into ready-to-build lots for homebuilders across the U.S. Roughly 75% owned by D.R. Horton, its biggest customer, giving it a built-in pipeline most land developers would kill for.

In Bastion Portfolios?

52W Return+3%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+3%4

Revenue Forecast

Rev CAGR (1y)-0%2

Rev CAGR (3y)+0%1

Rev CAGR (5y)+0%1

Earnings Forecast

EPS Growth Y+1-13%3

EPS Growth Y+2+7%6

EPS Growth Y+3-9%3

Quality

Margins

EBIT Margin12%5

Net Income Margin10%6

Free Cash Flow Margin16%7

Debt

Net Debt/EBITDA1.94

Efficiency

ROE10%4

ROA5%6

Earnings Stability55

GEAR+AVERAGE37

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)109

P/E Ratio (Forward 3y)98

P/BV0.710

EV Multiples

EV/EBITDA Fwd87

EV/EBIT Fwd99

Yield

Free Cash Flow Yield21.1%10

Dividend Yieldna–

Momentum

Short term

1 month return-6%4

3 month return-13%3

YTD return+7%6

Mid term

Price vs 52wHigh82%6

1 year return+2%5

Long term

3 year return+1%3

5 year return+35%5

Risk Shield

Price Risk

Beta0.67

Volatility33%6

Free Cash Flow

Free Cash Flow Margin16%7

Free Cash Flow Yield21.1%10

Quality

ROCE7%4

Earnings Stability55

Net Debt/EBITDA1.94

02Growth

Is it actually growing, and how fast?

FORForestar Group

Revenue FY25$1.7B

GROWTH RATING↗

VERY WEAK4 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y-0%2

Revenue, next 3Y, CAGR+0%1

Revenue, next 5Y, CAGR+0%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-13%3

EPS growth, FY27E+7%6

EPS growth, FY28E-9%3

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 3%/yr over the last 3 years and is set to keep growing around 0.4%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 96% of companies worldwide.

Revenue is set to hold flat over the next 3 years, behind most of the market.1/10

Over five years revenue is set to hold flat, behind 90% of companies worldwide.1/10

Earnings are set to fall even as revenue grows (EPS about -9%/yr vs revenue 0.4%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK30 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-13%3

YTD return+7%6

MID & LONG-TERM▾SCORE

% of 52-week high82%6

1-year return+2%5

3-year return+1%3

5-year return+35%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+0.8% over three years and +35% over five), roughly average for the market.

It's up 2% over the past year, but 18% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over the past month (-6%) and so far this year (+7%).

WEAKNESSES

The stock is underperforming over three months (-13%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the stock is underperforming over three months.

04Value

Are you paying a fair price for it?

Stop guessing on Forestar Group Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

FORForestar Group

Revenue FY25$1.7B

GROWTH RATING↗

VERY WEAK4 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y-0%2

Revenue, next 3Y, CAGR+0%1

Revenue, next 5Y, CAGR+0%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-13%3

EPS growth, FY27E+7%6

EPS growth, FY28E-9%3

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 3%/yr over the last 3 years and is set to keep growing around 0.4%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 96% of companies worldwide.

Revenue is set to hold flat over the next 3 years, behind most of the market.1/10

Over five years revenue is set to hold flat, behind 90% of companies worldwide.1/10

Earnings are set to fall even as revenue grows (EPS about -9%/yr vs revenue 0.4%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK30 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-13%3

YTD return+7%6

MID & LONG-TERM▾SCORE

% of 52-week high82%6

1-year return+2%5

3-year return+1%3

5-year return+35%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+0.8% over three years and +35% over five), roughly average for the market.

It's up 2% over the past year, but 18% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over the past month (-6%) and so far this year (+7%).

WEAKNESSES

The stock is underperforming over three months (-13%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Forestar Group Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community