FOR

Forestar Group Inc.

Fundamental data last updated:August 16, 2026

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company profile

SECTOR

Real Estate

industry

Real Estate - Development

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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. It sells its residential single-family finished lots to homebuilders. The company is headquartered in Arlington, Texas. Forestar Group Inc. is a subsidiary of D.R. Horton, Inc.

 


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VALUATION

P/E

8.35

Market Cap ($M USD)

$1.40B

Forward P/E

6.86

PEG

0.31

PRICE TO SALES

0.82

PRICE TO BOOK

0.77

EV / EBITDA

8.65

5-Year Average P/E

Free Cash Flow Yield

18.96%

DCF Value

$54.95

Graham Number

$51.34

Price to FCF

5.27

EV to FCF

6.96

Earnings Yield

11.97%

FCF Yield

18.96%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.28

Next Year EPS Growth Estimate

$4.00

Next Year Revenue Growth Estimate

$1.96B

Return on Equity (ROE)

9.49%

FREE CASH FLOW

Operating Margin

12.30%

Debt-to-Equity

0.46

Piotroski F-Score

7

Altman Z-Score

1.84

Return on Invested Capital (ROIC)

7.68%

Current Ratio

0.83

Quick Ratio

0.83

Net Debt to EBITDA

2.10

Interest Coverage

0.00

Gross Profit margin

21.34%

FCF PER SHARE

$5.20

REVENUE PER SHARE

$33.50

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Gainseekers Quantitative Analysis

Summary

Forestar Group Inc. appears significantly undervalued when juxtaposed with its DCF Value and Graham Number. The stock traded below its intrinsic value, suggesting a potential mispricing by the market. With a Forward P/E of 6.88 and an Earnings Yield of 11.94%, the company presents a compelling case for growth at a reasonable price. However, the Altman Z-score of 1.83 raises caution about financial distress risk, indicating that while the valuation is attractive, investors should remain vigilant about its balance sheet health.

AI Exposure / Tech Reliance

Operating in the Real Estate Development sector, Forestar Group Inc. is not directly exposed to AI or tech disruptions. However, the industry can leverage AI for predictive analytics in property valuation and market trends. The company's resilience will depend on its ability to integrate such technologies to enhance operational efficiencies.

The Bull Case

For value or GARP investors, Forestar offers a tantalizing opportunity. With a robust ROIC of 7.68% and a strong FCF Yield of 18.91%, the company demonstrates efficient capital allocation and cash generation. The Piotroski F-Score of 7 indicates solid financial health, while an operating margin of 12.30% underscores its pricing power. These metrics suggest a well-managed company capable of delivering shareholder value.

The Bear Case

Despite its strengths, Forestar faces structural risks. The Altman Z-score hints at potential financial instability, and the current ratio of 0.83 suggests liquidity concerns. Trading near its 52-week high, the stock may be technically overextended. Additionally, the lack of dividend yield and interest coverage could deter income-focused investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$28.38

Institutional Ownership %

1-Year Beta

1.45

Insider Buying % (6 Mo)

Distance to 52-Week High

12.11%

Distance to 52-Week Low

31.69%

EARNINGS SURPRISE %

-12.50%

50-DAY SMA

$26.20

200-DAY SMA

$26.40

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.