Forestar Group Stock Intrinsic Value – Forestar Group Reports Lower Earnings and Revenue for Fiscal Q2
April 30, 2023
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The Forestar Group ($NYSE:FOR), a leading real estate and natural resource development company, has reported its fiscal Q2 earnings per diluted share of $0.54, a decrease from the previous year’s $0.96. This news was reported early Thursday, resulting in a drop in stock price. Analysts polled by Capital IQ were split on the results, with four analysts providing estimates. The company is an industry leader in land planning and development, with a focus on energy, timber, and minerals. Its expertise extends to acquisitions and dispositions, financing and capital markets, title and due diligence services, and homebuilding operations.
This quarter’s earnings come as a surprise to investors, who had expected higher profits for the fiscal period. As a result of the lower-than-expected earnings, the stock price has dropped significantly. While it is uncertain what effect this will have on the company’s future performance, investors will be watching closely to see how the Forestar Group responds to this news.
Market Price
On Tuesday, Forestar Group reported lower earnings and revenues for fiscal Q2. The company’s stock opened at $17.8 and closed at $18.2, a 0.8% increase from its prior closing price of 18.0. Despite the lower earnings and sales, investors expressed optimism towards the company’s future performance. 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 |
| 1.21k | 138.2 | 11.2% |
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 |
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 |
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% |
Analysis – Forestar Group Stock Intrinsic Value
At GoodWhale, we provide comprehensive financial analysis for FORESTAR GROUP. After assessing the value of FORESTAR GROUP’s assets and liabilities, we have calculated the intrinsic value of FORESTAR GROUP share to be around $17.3, using our proprietary Valuation Line. More…
Peers
Forestar Group Inc has long been in competition with some of the biggest names in the real estate industry, such as Godrej Properties Ltd, PDG Realty SA Empreendimentos e Participacoes and Develia SA. This competition has been intense, with each company constantly pushing to outdo each other in terms of product quality, customer service, and market share. As a result, the real estate industry has seen tremendous growth and innovation over the past few years, much of which can be attributed to the rivalry between these companies.
– Godrej Properties Ltd ($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
Forestar Group‘s second quarter earnings have seen a decline from the same period of the previous year, with diluted earnings per share coming in at $0.54, down from $0.96. According to Capital IQ survey of four analysts, this decline reflects on a decrease in revenue for the company. Investors should assess the company’s performance and outlook before investing in Forestar Group. Factors such as production costs, competitive landscape, and management strategy should be taken into consideration.
In addition, monitoring current news, insider trading activity, and other performance metrics can help investors to evaluate their potential investments.
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