Forestar Group Inc

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FOR : NYSE : Financial
$12.14 -0.08 | -0.65%
Today's Range: 11.99 - 12.26
Avg. Daily Volume: 202,700
07/25/16 - 3:59 PM ET

Financial Analysis


FORESTAR GROUP INC's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased.

At the same time, stockholders' equity ("net worth") has significantly decreased by 28.97% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)41.8947.81
EBITDA ($mil)4.852.41
EBIT ($mil)0.06-8.91
Net Income ($mil)-4.38-8.16


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)142.65126.26
Total Assets ($mil)948.051236.97
Total Debt ($mil)372.76434.41
Equity ($mil)498.04701.27


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin25.621.7
EBITDA Margin11.575.04
Operating Margin0.15-18.64
Sales Turnover0.270.22
Return on Assets-22.070.0
Return on Equity-42.010.01
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.430.38
Interest Expense7.548.82
Interest Coverage0.01-1.01


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)33.9133.62
Div / share0.00.0
EPS-0.13-0.24
Book value / share14.6920.86
Institutional Own % n/a n/a
Avg Daily Volume202492.0239532.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.81 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 3.28. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing 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 NM Peers 36.73   FOR 6.79 Peers 164.10

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

FOR's P/E is negative making this valuation measure meaningless.

 

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 18.26 Peers 45.62   FOR NA Peers 1.37

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 significant 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FOR 0.81 Peers 3.28   FOR -4991.66 Peers 40.91

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.

 

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

However, FOR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FOR 1.57 Peers 2.59   FOR -4.99 Peers 20.08

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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