📊 FOR Key Takeaways
Is Forestar Group Inc. (FOR) a Good Investment?
Despite 7.6% revenue growth and positive net income of $47.5M, Forestar exhibits critical operational distress with negative operating cash flow of -$5.1M, indicating the company is not generating cash from core operations. Deteriorating profitability quality is evident in declining diluted EPS (-17.8% YoY), extremely thin gross margins (1.6%), and abysmal returns on equity (2.6%) and assets (1.5%), suggesting structural operational challenges and inefficient capital deployment.
Forestar Group shows modest top-line growth, but earnings quality appears weak as net income declined year over year and operating cash flow was deeply negative. Profitability is thin, returns on capital are very low, and the combination of heavy cash burn with meaningful long-term debt limits financial flexibility despite a still-solid equity base.
Why Buy Forestar Group Inc. Stock? FOR Key Strengths
- Moderate leverage with 0.44x debt/equity ratio and manageable debt structure
- Positive net income of $47.5M demonstrates operational profitability at headline level
- Strong cash position of $362.2M provides liquidity buffer against near-term operational challenges
- Revenue is still growing year over year, indicating underlying demand has not collapsed
- Balance sheet leverage is not excessive with debt-to-equity of 0.44x and a sizable equity cushion
- Cash balance of $211.7M provides some near-term liquidity support
FOR Stock Risks: Forestar Group Inc. Investment Risks
- Negative operating cash flow (-$5.1M) despite positive earnings signals unsustainable business model and potential working capital deterioration
- Severely depressed return metrics (ROE 2.6%, ROA 1.5%) indicate severe inefficiency in capital utilization and questionable management capital allocation
- Declining diluted EPS (-17.8% YoY) coupled with extremely thin gross margins (1.6%) suggests vulnerability to any operational headwinds or margin compression
- Operating cash flow and free cash flow are deeply negative, which raises concerns about growth quality and working capital intensity
- Net income, EPS, ROE, and ROA are weak, indicating poor capital efficiency and deteriorating profitability
- Margins are very thin, leaving limited room for execution mistakes or softer real estate market conditions
Key Metrics to Watch
- Operating cash flow trajectory and reconciliation to net income divergence
- Gross margin stabilization and whether further compression occurs in subsequent periods
- Return on equity and asset efficiency improvements or continued deterioration
- Operating cash flow relative to net income
- Net margin and return on equity trend
Forestar Group Inc. (FOR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FOR Profit Margin, ROE & Profitability Analysis
FOR vs Real Estate Sector: How Forestar Group Inc. Compares
How Forestar Group Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Forestar Group Inc. Stock Overvalued? FOR Valuation Analysis 2026
Based on fundamental analysis, Forestar Group Inc. has mixed fundamental signals relative to the Real Estate 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.
Forestar Group Inc. Balance Sheet: FOR Debt, Cash & Liquidity
FOR Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
FOR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $331.4M | $31.6M | $0.62 |
| 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.
Forestar Group Inc. Dividends, Buybacks & Capital Allocation
FOR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Forestar Group Inc. (CIK: 0001406587)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FOR
What is the AI rating for FOR?
Forestar Group Inc. (FOR) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FOR's key strengths?
Claude: Moderate leverage with 0.44x debt/equity ratio and manageable debt structure. Positive net income of $47.5M demonstrates operational profitability at headline level. ChatGPT: Revenue is still growing year over year, indicating underlying demand has not collapsed. Balance sheet leverage is not excessive with debt-to-equity of 0.44x and a sizable equity cushion.
What are the risks of investing in FOR?
Claude: Negative operating cash flow (-$5.1M) despite positive earnings signals unsustainable business model and potential working capital deterioration. Severely depressed return metrics (ROE 2.6%, ROA 1.5%) indicate severe inefficiency in capital utilization and questionable management capital allocation. ChatGPT: Operating cash flow and free cash flow are deeply negative, which raises concerns about growth quality and working capital intensity. Net income, EPS, ROE, and ROA are weak, indicating poor capital efficiency and deteriorating profitability.
What is FOR's revenue and growth?
Forestar Group Inc. reported revenue of $647.3M.
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 $0.93.
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 May 2026, Forestar Group Inc. has a SELL rating with 76% 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 2.6% (sector avg: 8%), net margin of 7.3% (sector avg: 20%). 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 $-5.1M, with capital expenditures of $300.0K. FCF margin is -0.8%.
How does FOR compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 7.3% (avg: 20%), ROE 2.6% (avg: 8%), current ratio N/A (avg: 1.5).