Forestar Group Stock Fair Value – FORESTAR GROUP Announces Third Quarter Earnings Results for FY2023
July 23, 2023
🌥️Earnings Overview
On July 20 2023, FORESTAR GROUP ($NYSE:FOR) released their earnings results for the third quarter of FY2023, ending June 30 2023. Total revenue for the quarter was USD 368.9 million, representing a 19.6% year-on-year increase. Net income also improved 17.9% from the same period in the prior year, coming in at USD 46.8 million.
Price History
This news was met with great excitement and enthusiasm as the stock opened at $24.6 and closed at $25.3, showing a rise of 5.7% from its previous closing price of 23.9. The quarterly report showed a positive outlook on the company’s future as its performance has been steadily increasing quarter over quarter. Investors and analysts have been closely watching the performance of FORESTAR GROUP‘s stock, as it has continuously seen strong growth over the past few quarters. This steady increase in performance has been attributed to the company’s successful diversification strategies and cost-cutting measures.
Overall, FORESTAR GROUP’s earnings results for FY2023 show strong signs of the company’s continued growth and profitability. These promising results are sure to attract more investors in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Forestar Group. More…
| Total Revenues | Net Income | Net Margin |
| 1.27k | 145.3 | 11.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Forestar Group. More…
| Operations | Investing | Financing |
| 255.1 | 0.5 | -0.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Forestar Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.38k | 1.08k | 25.96 |
Key Ratios Snapshot
Some of the financial key ratios for Forestar Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.6% | 48.9% | 14.4% |
| FCF Margin | ROE | ROA |
| 20.0% | 9.0% | 4.8% |
Analysis – Forestar Group Stock Fair Value
At GoodWhale, we have conducted an analysis of FORESTAR GROUP‘s financials. After analyzing the company’s performance, we determined that the fair value of FORESTAR GROUP share is around $18.2, calculated by our proprietary Valuation Line. However, at the moment, FORESTAR GROUP stock is being traded at $25.3, which indicates an overvaluation of 39.0%. We recommend investors to keep a lookout for potential market corrections. More…
Peers
Forestar Group Inc has long been in competition with some of the biggest names in the real estate industry, such as Godrej Properties Ltd, PDG Realty SA Empreendimentos e Participacoes and Develia SA. This competition has been intense, with each company constantly pushing to outdo each other in terms of product quality, customer service, and market share. As a result, the real estate industry has seen tremendous growth and innovation over the past few years, much of which can be attributed to the rivalry between these companies.
– Godrej Properties Ltd ($BSE:533150)
Godrej Properties Ltd is a leading real estate development company based in India that has been providing world-class residential, commercial and hospitality properties since its inception in 1985. As of 2023, the company has a market cap of 333.58B, making it one of the largest companies in the real estate sector in India. Furthermore, the company has an impressive Return on Equity (ROE) of 4.5%, which is higher than the industry average of 1.5%. This indicates that the company is efficiently using its resources to maximize its profits and return value to its shareholders.
– PDG Realty SA Empreendimentos e Participacoes ($OTCPK:PDGRY)
PDG Realty SA Empreendimentos e Participacoes is a Brazilian real estate company that offers a range of products and services related to the development, construction, marketing, and management of residential and commercial real estate projects. The company has a market cap of 7.97M as of 2023, which reflects its size and market presence in the region. Despite its relatively small size, PDG Realty SA Empreendimentos e Participacoes has seen a return on equity of -11.54%, indicating a weaker performance than that of its peers. This poor return can be attributed to the company’s limited resources and the challenging economic climate in the region.
– Develia SA ($LTS:0LVI)
Develia SA is a publicly-traded company that specializes in the development and production of digital content, such as computer games and online services. The company has a current market capitalization of 1.16 billion as of 2023, indicating a significant level of investor confidence in the company to produce successful products and services. The company’s Return on Equity (ROE) is 8.24%, which is a strong indicator of the company’s ability to generate profits from its shareholders’ equity. This has enabled Develia SA to continue investing in new technologies, products and services while still providing returns to shareholders.
Summary
Investors reacted positively to FORESTAR GROUP‘s third quarter earnings results for the fiscal year 2023, with the company reporting total revenue of USD 368.9 million, an increase of 19.6%, and net income of USD 46.8 million, up 17.9%, from the same period last year. This strong performance pushed its stock price higher on the same day. Analysts have noted that the company’s sound financial fundamentals and consistent growth make it an attractive option for investors, with prospects for more upside in the future.
