Forestar Group Inc.

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FOR : NYSE : Finance
$25.05 | %
Today's Range: 24.95 - 25.2
Avg. Daily Volume: 175100.0
02/23/18 - 4:02 PM ET

Financial Analysis


FORESTAR GROUP INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased.

During the same period, stockholders' equity ("net worth") has increased by 22.17% from the same quarter last year.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)33.1447.21
EBITDA ($mil)5.58.37
EBIT ($mil)4.255.76
Net Income ($mil)45.211.01


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)395.36122.13
Total Assets ($mil)793.53692.08
Total Debt ($mil)115.51112.35
Equity ($mil)630.08515.71


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin27.8328.5
EBITDA Margin16.6117.73
Operating Margin12.8112.19
Sales Turnover0.190.34
Return on Assets14.031.51
Return on Equity11.4512.72
Debt Q3 FY17 Q3 FY16
Current Ratio0.00.0
Debt/Capital0.150.18
Interest Expense2.043.37
Interest Coverage2.081.71


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)41.9433.72
Div / share0.00.0
EPS0.190.4
Book value / share15.0215.29
Institutional Own % n/a n/a
Avg Daily Volume191333.0660956.0

Valuation


HOLD. FORESTAR GROUP INC's P/E ratio indicates a significant discount compared to an average of 41.16 for the Real Estate Management & Development industry and a significant discount compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 1.65 indicates a significant discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 3.30. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. 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 14.56 Peers 41.16   FOR 33.14 Peers 25.68

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.

 

Premium. 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 premium 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 NA Peers 42.17   FOR NA Peers 0.75

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

Ratio not available.

 

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 1.65 Peers 3.30   FOR -2.30 Peers 5.09

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 7.02 Peers 5.69   FOR -37.89 Peers 10.11

Premium. 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 premium 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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