Forestar Group Inc. (FOR) AI Stock Analysis

Forestar Group Inc. functions as a residential lot development enterprise across the United States. It specializes in acquiring land and establishing essential infrastructure for single-family residential communities. The company focuses on selling finished residential lots to a diverse clientele of local, regional, and national homebuilders. Headquartered in Arlington, Texas, Forestar operates under the umbrella of D.R. Horton, Inc., a leading national homebuilder. This affiliation provides financial backing and strategic support, enabling Forestar to pursue growth initiatives and expand housing options by delivering high-quality residential lots in key markets.

Forestar delivered a 5-year revenue CAGR of 12.3% from FY2020 to FY2025. In FY2025, revenue grew 10.1% to $1.66B, though net income fell from $203.4M in FY2024 to $167.9M, resulting in a net margin of 10.1% and EPS of $3.31. Operating margin stood at 12.6% in FY2025, compared to 16.0% in FY2024. Over the trailing twelve months, revenue reached $1.72B with an operating margin of 11.2% and EPS of $3.33. For the latest quarter ended June 30, 2026, quarterly revenue increased 4.2% year-over-year while quarterly earnings expanded 8.4%.

As of June 30, 2026, Forestar held $394.9M in cash and short-term investments against total debt of $810.2M, resulting in net debt of $415.3M. Shareholders' equity was $1.86B, reflecting a debt-to-equity ratio of 0.44 and a current ratio of 1.04. Free cash flow was negative in FY2025 at -$199.9M, following operating cash flow of -$197.7M. During FY2025, capital expenditures were $2.2M and share buybacks totaled $1.8M, with total shares up 2.6% over five years.

Forestar trades at a trailing P/E of 7.7x, well below the 21.6x median of its US-listed Real Estate peers. However, its forward P/E stands at 49.0x, above the peer group median of 23.5x. Its price-to-sales multiple is 0.8x compared to the peer median of 3.7x, and its EV-to-EBITDA is 8.2x versus the peer median of 14.7x. Over the past year, the stock returned -0.4%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, FOR gained 31.6% compared to 83.0% for the S&P 500.

Wall Street coverage includes 1 Strong Buy, 1 Buy, and 1 Hold rating, with no Sell or Strong Sell recommendations. The mean price target of $34.00 represents a 32.5% premium to the last close of $25.67. For the fiscal year ending September 30, 2026, analysts estimate EPS of $2.88, reflecting a 12.8% decline, alongside revenue of $1.66B. For the subsequent year, 3 analysts estimate EPS of $2.85 on revenue of $1.68B. Forestar beat earnings estimates in 1 of the last 4 quarters, with next earnings scheduled for October 29, 2026.

This page is an AI-written research summary of Forestar Group Inc. (FOR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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