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FOR

Strong BuyFLAG

Forestar Group Inc. · Real Estate · United States · $1.5B · Avg Vol: $4M/d

90
StockRank
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Q
68
V
74
M
48
P/E (TTM)
8.7x
ROE
9.6%
D/E
0.2x
Dividend %
AI CONVICTION THESIS

Forestar Group develops residential lots and is majority-owned by a large US homebuilder that is also its main customer, a structure that provides volume visibility but concentrates counterparty risk. Higher-for-longer mortgage rates suppress the entry-level demand its lots serve. Nothing adverse is known on accounting or governance, so the default applies.

COMPANY DESCRIPTION

Forestar Group is a leading national residential lot developer with operations focused on acquiring and developing land into finished lots for homebuilders. The company operates under a strategic relationship with D.R. Horton, the nation's largest homebuilder, which provides a highly secure demand channel for its developed lots. Its competitive moat is defined by its capital-efficient business model, national scale, and unique access to D.R. Horton's extensive market footprint.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue1.5B1.4B1.5B1.7B3.1%1.7B1.7B1.7B1.8%
EPS3.593.344.033.30-2.8%3.332.883.00-4.7%
Shares49.8M49.9M50.7M50.8M+2.2%51.0M
Debt714.1M703.1M716.6M817.1M4.6%111.7M
Equity1.2B1.4B1.6B1.8B13.8%
Op CF108.7M364.1M-158.4M-197.7M235.0%283.9M
Inv CF1.3M0.3M7.3M3.2M
Fin CF1.2M-13.2M16.3M92.5M
Loading 1Y...
PRICE (1Y)+1.5%
27.0227.6828.3328.9829.64Jul 20Aug 10Aug 28
SMA 50SMA 200

Close
$28.63
RSI (14)
51.2
52W High
$32.06
From 52W High
0.9%

SCORE BREAKDOWN

Quality
68
ROIC
7.8%73.8
ROE
9.6%70.8
GP/Assets
11.8%80.9
Op. Margin
4.7%20.9
FCF/Assets
8.5%90.4
Piotroski
10.2
Int. Cover
50.0x92.1
D/E Ratio
0.17x90.3
Current Ratio
2.07x71.4
Value
74
P/E (TTM)
8.7x73.5
EV/EBITDA
5.9x93.0
P/FCF
5.6x82.0
P/B
0.8x58.2
P/S
0.9x83.5
Div Yield
N/A
Momentum
48
52W High %
89%65.6
RS 6M
-13%45.8
SMA 50/200
1.08x86.9
EPS Rev 4W
-5.7%7.6
EPS Rev 12W
-6.1%14.5
EPS Improve
-10%36.1
Q Growth
21%61.5

FUNDAMENTALS

Market Cap
$1.5B
P/E (Forward)
9.7x
Gross Margin
21.4%

SECTOR PEERS

Closest peers in Real Estate, ranked by industry match, size, and score similarity. Cross-listings of FOR are excluded.

TickerCompanyMkt CapStockRankSignal
FORForestar Group Inc.(you)$1.5B90Strong Buy
CCSCentury Communities, Inc.$2.0B86Strong Buy
HHHHoward Hughes Holdings Inc.$4.0B57Hold
AXRAMREP Corporation$122M78Buy
FPHFive Point Holdings, LLC$763M26Sell
SKYHSky Harbour Group Corporation$849M16Strong Sell
SDHCSmith Douglas Homes Corp.$104M50Hold
IIPRInnovative Industrial Properties, Inc.$1.6B90Strong Buy
XHRXenia Hotels & Resorts, Inc.$1.9B84Strong Buy
CBLCBL & Associates Properties, Inc.$1.7B99Strong Buy

Peer medians: ROE 4.9% · P/E 25.1x · Gross margin 67.3%

Forestar Group Inc. (FOR): Stock Score Summary

Forestar Group Inc. (FOR) has a MoatMap StockRank of 90/100 based on Quality (68/100), Value (74/100), and Momentum (48/100) factor scores. The current signal is STRONG BUY. Forestar Group develops residential lots and is majority-owned by a large US homebuilder that is also its main customer, a structure that provides volume visibility but concentrates counterparty risk. Higher-for-longer mortgage rates suppress the entry-level demand its lots serve. Nothing adverse is known on accounting or governance, so the default applies.

Forestar Group is a leading national residential lot developer with operations focused on acquiring and developing land into finished lots for homebuilders. The company operates under a strategic relationship with D.R. Horton, the nation's largest homebuilder, which provides a highly secure demand channel for its developed lots. Its competitive moat is defined by its capital-efficient business model, national scale, and unique access to D.R. Horton's extensive market footprint.

Key Financial Metrics

Price$28.63
Market Cap$1.5B
P/E (TTM)8.70
P/E (Forward)9.66
Price/Book0.80
Return on Equity9.6%
Return on Invested Capital7.8%
Debt/Equity0.17x
Gross Margin21.4%
Operating Margin4.7%
Revenue Growth-3.0%
Free Cash Flow$265M

Forestar Group Inc. operates in the Real Estate - Development industry, part of the Real Estate sector (United States).

Frequently Asked Questions

What is Forestar Group Inc.’s (FOR) StockRank?
MoatMap’s StockRank for Forestar Group Inc. (FOR) is 90/100, with a Strong Buy signal. It is a composite of Quality (68), Value (74), and Momentum (48) factor ranks across MoatMap’s 20,000+ stock universe.
Does Forestar Group Inc. have an economic moat?
Forestar Group Inc. (FOR) has a Quality factor score of 68/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Forestar Group Inc. a buy, hold, or sell?
MoatMap’s current signal for Forestar Group Inc. (FOR) is Strong Buy, based on a StockRank of 90/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is Forestar Group Inc. in?
Forestar Group Inc. (FOR) operates in the Real Estate sector, specifically the Real Estate - Development industry (United States).