📊 FOR Key Takeaways
Is Forestar Group Inc. (FOR) a Good Investment?
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.
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
- 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
- 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
- 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
- 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 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
- 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 |
|---|---|---|---|
| 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
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775160434.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775160336.xml | View → |
| Mar 31, 2026 | 4 | xslF345X06/wk-form4_1774987676.xml | View → |
| Mar 31, 2026 | 4 | xslF345X06/wk-form4_1774987649.xml | View → |
| Mar 31, 2026 | 4 | xslF345X06/wk-form4_1774987622.xml | View → |
❓ 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 78% combined 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. 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: 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. 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 $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 April 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: 8%), net margin of 5.6% (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 $-157.0M, with capital expenditures of $100.0K. FCF margin is -57.5%.
How does FOR compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 5.6% (avg: 20%), ROE 0.9% (avg: 8%), current ratio N/A (avg: 1.5).