Forestar Group Intrinsic Value Calculator – Forestar Group Could Be Undervalued Despite Headcount Growth And Lot Price Increase

June 20, 2023

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Forestar Group ($NYSE:FOR) could be undervalued, as suggested by a notable increase in their lot prices and headcount growth. The real estate investment company focuses on the acquisition, development and management of land located in major metropolitan markets across the United States. The company’s lot prices have increased substantially over the past year, suggesting that it may be undervalued. This indicates that the company is in good financial health and may be undervalued. Furthermore, the company has been investing heavily in research and development to identify new opportunities for growth.

This includes projects such as the acquisition of additional land and the development of new residential communities. These investments have allowed Forestar to expand its operations and increase its value. The company’s investments in research and development ensure that it continues to identify new opportunities for growth, making it an appealing option for investors.

Price History

Thursday’s trading session saw Forestar Group‘s stock open at $21.4 and close at $21.2, a 1.4% decrease from its prior closing price of $21.5. This is based on the evidence of its increasing headcount and rising lot prices. Forestar Group has seen its headcount grow steadily over the last few years, suggesting a strong underlying performance in its core business operations. Furthermore, the rising lot prices of its developments indicates that the company is seeing increased demand for its products, particularly in real estate.

All in all, the evidence of increased staff and higher lot prices should act as a bullish indicator for Forestar Group’s stock price in the long run. Although it may have experienced some short-term downtrends, investors should take into account these underlying positive trends to gain a better understanding of the company’s potential future performance. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Forestar Group. More…

    Total Revenues Net Income Net Margin
    1.21k 138.2 11.2%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Forestar Group. More…

    Operations Investing Financing
    53.1 1.3 1.2
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
    2.34k 1.09k 24.5
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • 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
    18.2% 50.9% 14.4%
    FCF Margin ROE ROA
    4.2% 8.8% 4.6%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Forestar Group Intrinsic Value Calculator

    At GoodWhale, we conducted an analysis of FORESTAR GROUP‘s wellbeing and found that the intrinsic value of their share is around $17.3, as calculated by our proprietary Valuation Line. Currently, FORESTAR GROUP’s stock is being traded at $21.2, making it 22.6% overvalued. We believe investors should be cautious when considering such investments and take this analysis into account before making their decision. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • 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

    Forestar Group is an Australian property investment company that has seen impressive growth in recent years. Their headcount has grown significantly, as well as the median lot price, indicating that the company may be undervalued. A closer look at the company’s financials reveals a strong balance sheet with good cash flow and debt levels. The company’s strategy focuses on long-term growth through strategic investments and portfolio diversification. The company has also been proactive in its approach to asset management, actively seeking to expand into new markets and improve operating efficiency.

    Additionally, for investors looking for stability, Forestar’s portfolio is diversified across multiple sectors, providing exposure to different types of real estate assets. All in all, Forestar Group appears to be an attractive investment opportunity.

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