📊 FOR Key Takeaways
Is FOR a Good Investment? Thesis Analysis
Forestar Group demonstrates deteriorating operational performance with net income declining 17.5% YoY despite 7.6% revenue growth, indicating significant margin compression. Negative operating cash flow of -$157M combined with weak profitability ratios (3.7% gross margin, 0.9% ROE, 0.5% ROA) suggests fundamental operational challenges that outweigh modest revenue expansion.
Why Buy FOR? Key Strengths
- Revenue growth of 7.6% YoY demonstrates market demand for services
- Substantial asset base of $3.2B provides capital for operations
- Moderate debt-to-equity ratio of 0.44x indicates manageable leverage relative to real estate sector
- Healthy cash position of $211.7M provides near-term liquidity buffer
FOR Investment Risks to Consider
- Severe negative free cash flow of -$157.1M indicates business is consuming rather than generating cash
- Profitability deterioration with net income down 17.5% YoY while revenue only grew 7.6% signals margin compression and cost control issues
- Extremely weak profit margins (3.7% gross, 5.6% net) leave minimal cushion for operational disruptions
- Abysmal returns on equity (0.9%) and assets (0.5%) indicate poor capital efficiency
- Negative operating cash flow despite positive net income suggests quality of earnings concerns and working capital stress
Key Metrics to Watch
- Operating cash flow trend - critical turnaround indicator
- Gross margin trajectory - shows pricing power and cost management
- Net income growth relative to revenue growth - quality of earnings indicator
- Return on equity trend - demonstrates capital allocation effectiveness
- Long-term debt levels - monitoring leverage sustainability with negative FCF
FOR Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FOR Profitability Ratios
FOR vs Default Sector
How Forestar Group Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FOR Overvalued or Undervalued?
Based on fundamental analysis, Forestar Group Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FOR Balance Sheet & Liquidity
FOR 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Forestar Group Inc.'s revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $3.33 reflects profitable operations.
FOR Growth Metrics (YoY)
FOR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $235.2M | $15.4M | $0.30 |
| Q3 2025 | $305.8M | $16.5M | $0.65 |
| Q2 2025 | $325.9M | $16.5M | $0.62 |
| Q1 2025 | $247.4M | $16.5M | $0.32 |
| Q3 2024 | $305.8M | $20.8M | $0.76 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FOR Capital Allocation
FOR SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Forestar Group Inc. (CIK: 0001406587)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774382935.xml | View → |
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774382903.xml | View → |
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774382868.xml | View → |
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774382829.xml | View → |
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774382790.xml | View → |
❓ Frequently Asked Questions about FOR
What is the AI rating for FOR?
Forestar Group Inc. (FOR) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FOR's key strengths?
Claude: Revenue growth of 7.6% YoY demonstrates market demand for services. Substantial asset base of $3.2B provides capital for operations.
What are the risks of investing in FOR?
Claude: Severe negative free cash flow of -$157.1M indicates business is consuming rather than generating cash. Profitability deterioration with net income down 17.5% YoY while revenue only grew 7.6% signals margin compression and cost control issues.
What is FOR's revenue and growth?
Forestar Group Inc. reported revenue of $273.0M.
Does FOR pay dividends?
Forestar Group Inc. does not currently pay dividends.
Where can I find FOR SEC filings?
Official SEC filings for Forestar Group Inc. (CIK: 0001406587) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FOR's EPS?
Forestar Group Inc. has a diluted EPS of $0.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FOR a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Forestar Group Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FOR stock overvalued or undervalued?
Valuation metrics for FOR: ROE of 0.9% (sector avg: 15%), net margin of 5.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FOR stock in 2026?
Our dual AI analysis gives Forestar Group Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FOR's free cash flow?
Forestar Group Inc.'s operating cash flow is $-157.0M, with capital expenditures of $100.0K. FCF margin is -57.5%.
How does FOR compare to other Default stocks?
Vs Default sector averages: Net margin 5.6% (avg: 12%), ROE 0.9% (avg: 15%), current ratio N/A (avg: 1.8).