Forestar Group Inc

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FOR : NYSE : Financial
$12.75 up 0.15 | 1.19%
Today's Range: 12.55 - 12.9
Avg. Daily Volume: 385100.0
01/20/17 - 4:05 PM ET

Financial Analysis


FORESTAR GROUP INC's gross profit margin for the third quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.80% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)47.2132.19
EBITDA ($mil)8.377.83
EBIT ($mil)5.76-5.59
Net Income ($mil)11.01-164.22


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)122.1392.64
Total Assets ($mil)692.081041.22
Total Debt ($mil)112.35435.3
Equity ($mil)515.71506.57


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin28.543.02
EBITDA Margin17.7324.31
Operating Margin12.19-17.38
Sales Turnover0.360.19
Return on Assets1.73-21.0
Return on Equity5.07-14.21
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.180.46
Interest Expense3.378.32
Interest Coverage1.71-0.67


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)33.7233.62
Div / share0.00.0
EPS0.4-1.67
Book value / share15.2915.07
Institutional Own % n/a n/a
Avg Daily Volume373390.0273570.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 34.76 for the Real Estate Management & Development industry and a discount compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 0.85 indicates a significant discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 4.04. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, FORESTAR GROUP INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FOR 22.03 Peers 34.76   FOR 5.48 Peers 16.96

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

FOR is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

FOR is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FOR 30.59 Peers 24.99   FOR NM Peers 0.51

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

FOR is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

FOR's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FOR 0.85 Peers 4.04   FOR 127.96 Peers 107.88

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

FOR is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

FOR is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FOR 1.78 Peers 3.49   FOR 27.56 Peers 40.26

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

FOR is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

FOR significantly trails its peers on the basis of sales growth

 

 

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