Is Forestar Stock a Good Investment?
Forestar Investment Advice | FOR |
- Examine Forestar's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Forestar's leadership team and their track record. Good management can help Forestar navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Real Estate Management & Development space and any emerging trends that could impact Forestar's business and its evolving consumer preferences.
- Compare Forestar's performance and market position to its competitors. Analyze how Forestar is positioned in terms of product offerings, innovation, and market share.
- Check if Forestar pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Forestar's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Forestar Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Forestar Group is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Forestar Stock
Researching Forestar's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 63.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.7. Some equities with similar Price to Book (P/B) outperform the market in the long run. Forestar Group had not issued any dividends in recent years.
To determine if Forestar is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Forestar's research are outlined below:
| Forestar Group generated a negative expected return over the last 90 days | |
| Forestar Group is unlikely to experience financial distress in the next 2 years | |
| Forestar Group has 716.6 M in debt with debt to equity (D/E) ratio of 0.62, which is OK given its current industry classification. Forestar Group has a current ratio of 0.91, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Forestar to invest in growth at high rates of return. | |
| Forestar Group has about 616 M in cash with (158.4 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.94. | |
| Roughly 63.0% of Forestar shares are held by company insiders | |
| Latest headline from finance.yahoo.com: Is D.R. Horton, Inc. the Worst Depressed Stock to Buy Now |
Forestar uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Forestar Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Forestar's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 18th of April 2024 Upcoming Quarterly Report | View | |
| 18th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 5th of November 2024 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Forestar's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Forestar's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2014-08-06 | 2014-06-30 | 0.1 | 0.09 | -0.01 | 10 | ||
2008-11-05 | 2008-09-30 | 0.01 | 0.02 | 0.01 | 100 | ||
2014-11-05 | 2014-09-30 | 0.1 | 0.12 | 0.02 | 20 | ||
2013-08-07 | 2013-06-30 | 0.04 | 0.02 | -0.02 | 50 | ||
2013-11-06 | 2013-09-30 | 0.13 | 0.16 | 0.03 | 23 | ||
2012-11-07 | 2012-09-30 | 0.15 | 0.12 | -0.03 | 20 | ||
2012-05-10 | 2012-03-31 | 0.11 | 0.08 | -0.03 | 27 | ||
2009-05-06 | 2009-03-31 | -0.08 | -0.05 | 0.03 | 37 |
Know Forestar's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Forestar is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Forestar Group backward and forwards among themselves. Forestar's institutional investor refers to the entity that pools money to purchase Forestar's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Principal Financial Group Inc | 2024-12-31 | 339 K | Empowered Funds, Llc | 2024-12-31 | 330.5 K | Millennium Management Llc | 2024-12-31 | 324.5 K | Jacobs Levy Equity Management, Inc. | 2024-12-31 | 307.7 K | Hennessy Advisors, Inc. | 2024-12-31 | 254 K | Denali Advisors Llc | 2024-12-31 | 237.2 K | Goldman Sachs Group Inc | 2024-12-31 | 228.8 K | Northern Trust Corp | 2024-12-31 | 217.3 K | Moody Aldrich Partners, Llc | 2024-12-31 | 208 K | Vanguard Group Inc | 2024-12-31 | 2.8 M | Dimensional Fund Advisors, Inc. | 2024-12-31 | 2.7 M |
Forestar's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 1.14 B.Market Cap |
|
Forestar's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.03 | |
| Return On Capital Employed | 0.05 | 0.09 | |
| Return On Assets | 0.07 | 0.07 | |
| Return On Equity | 0.08 | 0.09 |
Determining Forestar's profitability involves analyzing its financial statements and using various financial metrics to determine if Forestar is a good buy. For example, gross profit margin measures Forestar's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Forestar's profitability and make more informed investment decisions.
Evaluate Forestar's management efficiency
Forestar Group has Return on Asset of 0.0489 % which means that on every $100 spent on assets, it made $0.0489 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1202 %, implying that it generated $0.1202 on every 100 dollars invested. Forestar's management efficiency ratios could be used to measure how well Forestar manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Forestar's Return On Capital Employed is relatively stable compared to the past year. As of 03/22/2025, Return On Assets is likely to grow to 0.07, while Return On Tangible Assets are likely to drop 0.03. At this time, Forestar's Asset Turnover is relatively stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 14.37 | 13.65 | |
| Tangible Book Value Per Share | 14.36 | 13.64 | |
| Enterprise Value Over EBITDA | 44.06 | 73.59 | |
| Price Book Value Ratio | 1.53 | 1.34 | |
| Enterprise Value Multiple | 44.06 | 73.59 | |
| Price Fair Value | 1.53 | 1.34 | |
| Enterprise Value | 666.1 M | 793.7 M |
The management team at Forestar has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Beta 1.755 |
Basic technical analysis of Forestar Stock
As of the 22nd of March, Forestar shows the Standard Deviation of 2.35, mean deviation of 1.73, and Variance of 5.52. Forestar Group technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Forestar Group market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if Forestar Group is priced favorably, providing market reflects its regular price of 21.73 per share. Given that Forestar has information ratio of (0.12), we urge you to verify Forestar Group's prevailing market performance to make sure the company can sustain itself at a future point.Forestar's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Forestar insiders, such as employees or executives, is commonly permitted as long as it does not rely on Forestar's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Forestar insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Forestar's Outstanding Corporate Bonds
Forestar issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Forestar Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Forestar bonds can be classified according to their maturity, which is the date when Forestar Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| US346232AF83 Corp BondUS346232AF83 | View | |
| Forestar Group 5 Corp BondUS346232AE19 | View |
Understand Forestar's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Forestar's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.12) | |||
| Market Risk Adjusted Performance | (0.52) | |||
| Mean Deviation | 1.73 | |||
| Coefficient Of Variation | (676.81) | |||
| Standard Deviation | 2.35 | |||
| Variance | 5.52 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.31) | |||
| Total Risk Alpha | (0.18) | |||
| Treynor Ratio | (0.53) | |||
| Maximum Drawdown | 15.27 | |||
| Value At Risk | (3.32) | |||
| Potential Upside | 3.09 | |||
| Skewness | (0.40) | |||
| Kurtosis | 2.95 |
| Risk Adjusted Performance | (0.12) | |||
| Market Risk Adjusted Performance | (0.52) | |||
| Mean Deviation | 1.73 | |||
| Coefficient Of Variation | (676.81) | |||
| Standard Deviation | 2.35 | |||
| Variance | 5.52 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.31) | |||
| Total Risk Alpha | (0.18) | |||
| Treynor Ratio | (0.53) | |||
| Maximum Drawdown | 15.27 | |||
| Value At Risk | (3.32) | |||
| Potential Upside | 3.09 | |||
| Skewness | (0.40) | |||
| Kurtosis | 2.95 |
Consider Forestar's intraday indicators
Forestar intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Forestar stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Forestar Corporate Filings
F4 | 19th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 14th of March 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 16th of December 2024 Other Reports | ViewVerify | |
| 27th of November 2024 Other Reports | ViewVerify |
Forestar Stock media impact
Far too much social signal, news, headlines, and media speculation about Forestar that are available to investors today. That information is available publicly through Forestar media outlets and privately through word of mouth or via Forestar internal channels. However, regardless of the origin, that massive amount of Forestar data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Forestar news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Forestar relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Forestar's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Forestar alpha.
Forestar Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Forestar can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Forestar Group Historical Investor Sentiment
Investor biases related to Forestar's public news can be used to forecast risks associated with an investment in Forestar. The trend in average sentiment can be used to explain how an investor holding Forestar can time the market purely based on public headlines and social activities around Forestar Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Forestar's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Forestar and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Forestar news discussions. The higher the estimate score, the more favorable the investor's outlook on Forestar.
Forestar Corporate Directors
| Donald Spitzer | Independent Director | Profile | |
| Samuel Fuller | Independent Director | Profile | |
| George Ringler | Presiding Independent Director | Profile | |
| Lisa Jamieson | Independent Director | Profile |
Additional Tools for Forestar Stock Analysis
When running Forestar's price analysis, check to measure Forestar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Forestar is operating at the current time. Most of Forestar's value examination focuses on studying past and present price action to predict the probability of Forestar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Forestar's price. Additionally, you may evaluate how the addition of Forestar to your portfolios can decrease your overall portfolio volatility.