Forestar Group Inc

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FOR : NYSE : Financial
$11.71 -0.09 | -0.76%
Today's Range: 11.70 - 11.84
Avg. Daily Volume: 267,800
09/29/16 - 4:02 PM ET

Financial Analysis


FORESTAR GROUP INC's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

During the same period, stockholders' equity ("net worth") has decreased by 24.46% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)47.9943.63
EBITDA ($mil)-35.6416.79
EBIT ($mil)-38.124.76
Net Income ($mil)9.61-34.51


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)107.4298.76
Total Assets ($mil)681.831192.32
Total Debt ($mil)114.19434.84
Equity ($mil)504.9668.42


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin-64.3649.39
EBITDA Margin-74.2638.49
Operating Margin-79.4310.91
Sales Turnover0.360.18
Return on Assets-24.22-4.12
Return on Equity-31.05-1.42
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.180.39
Interest Expense6.928.72
Interest Coverage-5.510.55


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)33.6233.62
Div / share0.00.0
EPS0.280.06
Book value / share15.0219.88
Institutional Own % n/a n/a
Avg Daily Volume269292.0190575.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.78 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 3.70. 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 34.83   FOR 6.03 Peers 30.33

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 23.34 Peers 46.96   FOR NA Peers 1.12

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FOR 0.78 Peers 3.70   FOR -1340.62 Peers 20.28

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 1.62 Peers 4.45   FOR 10.28 Peers 39.73

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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