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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.54
FOR's Cash to Debt is ranked higher than
69% of the 1325 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.36 vs. FOR: 0.54 )
FOR' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.54
Current: 0.54

0.02
0.54
Equity to Asset 0.61
FOR's Equity to Asset is ranked higher than
80% of the 1290 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.45 vs. FOR: 0.61 )
FOR' s 10-Year Equity to Asset Range
Min: 0.54   Max: 0.71
Current: 0.61

0.54
0.71
Interest Coverage 2.33
FOR's Interest Coverage is ranked lower than
56% of the 750 Companies
in the Global Real Estate - General industry.

( Industry Median: 10.97 vs. FOR: 2.33 )
FOR' s 10-Year Interest Coverage Range
Min: 1.15   Max: 11.53
Current: 2.33

1.15
11.53
F-Score: 7
Z-Score: 1.44
M-Score: -2.18
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 14.07
FOR's Operating margin (%) is ranked higher than
61% of the 1321 Companies
in the Global Real Estate - General industry.

( Industry Median: 22.53 vs. FOR: 14.07 )
FOR' s 10-Year Operating margin (%) Range
Min: 14.07   Max: 85.51
Current: 14.07

14.07
85.51
Net-margin (%) 8.86
FOR's Net-margin (%) is ranked higher than
59% of the 1320 Companies
in the Global Real Estate - General industry.

( Industry Median: 15.11 vs. FOR: 8.86 )
FOR' s 10-Year Net-margin (%) Range
Min: 5.06   Max: 40.41
Current: 8.86

5.06
40.41
ROE (%) 4.13
FOR's ROE (%) is ranked higher than
56% of the 1306 Companies
in the Global Real Estate - General industry.

( Industry Median: 7.66 vs. FOR: 4.13 )
FOR' s 10-Year ROE (%) Range
Min: 1.01   Max: 12.4
Current: 4.13

1.01
12.4
ROA (%) 2.50
FOR's ROA (%) is ranked higher than
62% of the 1328 Companies
in the Global Real Estate - General industry.

( Industry Median: 3.15 vs. FOR: 2.50 )
FOR' s 10-Year ROA (%) Range
Min: 0.65   Max: 8.36
Current: 2.5

0.65
8.36
ROC (Joel Greenblatt) (%) 6.14
FOR's ROC (Joel Greenblatt) (%) is ranked higher than
55% of the 1278 Companies
in the Global Real Estate - General industry.

( Industry Median: 18.26 vs. FOR: 6.14 )
FOR' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 3.15   Max: 21.31
Current: 6.14

3.15
21.31
Revenue Growth (%) 47.70
FOR's Revenue Growth (%) is ranked higher than
94% of the 1004 Companies
in the Global Real Estate - General industry.

( Industry Median: 5.10 vs. FOR: 47.70 )
FOR' s 10-Year Revenue Growth (%) Range
Min: 0   Max: 47.7
Current: 47.7

0
47.7
EBITDA Growth (%) 37.30
FOR's EBITDA Growth (%) is ranked higher than
89% of the 830 Companies
in the Global Real Estate - General industry.

( Industry Median: 7.20 vs. FOR: 37.30 )
FOR' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 37.3
Current: 37.3

0
37.3
EPS Growth (%) 78.80
FOR's EPS Growth (%) is ranked higher than
95% of the 767 Companies
in the Global Real Estate - General industry.

( Industry Median: 8.30 vs. FOR: 78.80 )
FOR' s 10-Year EPS Growth (%) Range
Min: 0   Max: 78.8
Current: 78.8

0
78.8
» FOR's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

FOR Guru Trades in Q1 2013

Ron Baron 453,500 sh (New)
Jim Simons 257,600 sh (+101.78%)
John Keeley 2,345,282 sh (+4.94%)
Arnold Schneider 446,280 sh (-0.13%)
NWQ Managers 2,789,995 sh (-13.25%)
Chuck Royce 205,000 sh (-50.6%)
» More
Q2 2013

FOR Guru Trades in Q2 2013

Louis Moore Bacon 150,000 sh (New)
Paul Tudor Jones 10,500 sh (New)
Ron Baron 872,000 sh (+92.28%)
Chuck Royce 205,000 sh (unchged)
Arnold Schneider 442,155 sh (-0.92%)
John Keeley 2,286,557 sh (-2.5%)
NWQ Managers 2,575,838 sh (-7.68%)
Jim Simons 135,900 sh (-47.24%)
» More
Q3 2013

FOR Guru Trades in Q3 2013

Ron Baron 1,059,850 sh (+21.54%)
NWQ Managers 2,693,941 sh (+4.59%)
John Keeley 2,319,137 sh (+1.42%)
Louis Moore Bacon 150,000 sh (unchged)
Chuck Royce 205,000 sh (unchged)
Paul Tudor Jones Sold Out
Arnold Schneider 426,430 sh (-3.56%)
Jim Simons 45,200 sh (-66.74%)
» More
Q4 2013

FOR Guru Trades in Q4 2013

John Keeley 2,672,067 sh (+15.22%)
Louis Moore Bacon 170,426 sh (+13.62%)
NWQ Managers 2,841,345 sh (+5.47%)
Chuck Royce 205,000 sh (unchged)
Arnold Schneider 339,065 sh (-20.49%)
Ron Baron 808,572 sh (-23.71%)
Jim Simons 32,200 sh (-28.76%)
» More
» Details

Insider Trades

Latest Guru Trades with FOR

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Keeley 2013-12-31 Add 15.22%0.13%$18.42 - $23.59 $ 17.6-16%2672067
Ron Baron 2013-12-31 Reduce -23.71%0.02%$18.42 - $23.59 $ 17.6-16%808572
Ron Baron 2013-09-30 Add 21.54%0.02%$19.51 - $22.57 $ 17.6-17%1059850
Ron Baron 2013-06-30 Add 92.28%0.04%$19.44 - $24.68 $ 17.6-20%872000
Ron Baron 2013-03-31 New Buy0.05%$16.99 - $22.82 $ 17.6-10%453500
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Forestar Group, Inc.

Baron Funds Comments on Forestar Group Inc. - Feb 24, 2014

Forestar Group, Inc. (FOR) detracted from performance this quarter. Forestar is a leading real estate and resource development company, with 136,000 acres of owned land intended for residential and commercial development, and significant holdings of mineral and water rights. Underperformance was driven by a dilutive equity offering to fund the company's growth strategy.



From Ron Baron (Trades, Portfolio)'s Baron Funds' fourth quarter 2013 commentary.

Check out Ron Baron latest stock trades

Top Ranked Articles about Forestar Group, Inc.

Baron Funds Comments on Forestar Group Inc.
Forestar Group, Inc. (FOR) detracted from performance this quarter. Forestar is a leading real estate and resource development company, with 136,000 acres of owned land intended for residential and commercial development, and significant holdings of mineral and water rights. Underperformance was driven by a dilutive equity offering to fund the company's growth strategy. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 22.30
FOR's P/E(ttm) is ranked lower than
51% of the 1115 Companies
in the Global Real Estate - General industry.

( Industry Median: 12.00 vs. FOR: 22.30 )
FOR' s 10-Year P/E(ttm) Range
Min: 7.63   Max: 137.25
Current: 22.3

7.63
137.25
P/B 0.80
FOR's P/B is ranked higher than
72% of the 1270 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.98 vs. FOR: 0.80 )
FOR' s 10-Year P/B Range
Min: 0.29   Max: 2.29
Current: 0.8

0.29
2.29
P/S 2.00
FOR's P/S is ranked higher than
64% of the 1349 Companies
in the Global Real Estate - General industry.

( Industry Median: 2.67 vs. FOR: 2.00 )
FOR' s 10-Year P/S Range
Min: 0.82   Max: 7.28
Current: 2

0.82
7.28
EV-to-EBIT 16.40
FOR's EV-to-EBIT is ranked higher than
62% of the 1158 Companies
in the Global Real Estate - General industry.

( Industry Median: 15.75 vs. FOR: 16.40 )
FOR' s 10-Year EV-to-EBIT Range
Min: 5.1   Max: 86.6
Current: 16.4

5.1
86.6
Shiller P/E 28.80
FOR's Shiller P/E is ranked lower than
53% of the 620 Companies
in the Global Real Estate - General industry.

( Industry Median: 14.13 vs. FOR: 28.80 )
FOR' s 10-Year Shiller P/E Range
Min: 24.47   Max: 42.36
Current: 28.8

24.47
42.36

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.00
FOR's Price/Tangible Book is ranked higher than
67% of the 1249 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.00 vs. FOR: 1.00 )
FOR' s 10-Year Price/Tangible Book Range
Min: 0.76   Max: 1.93
Current: 1

0.76
1.93
Price/DCF (Projected) 1.00
FOR's Price/DCF (Projected) is ranked higher than
68% of the 524 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.20 vs. FOR: 1.00 )
FOR' s 10-Year Price/DCF (Projected) Range
Min: 1.24   Max: 1.44
Current: 1

1.24
1.44
Price/Median PS Value 0.50
FOR's Price/Median PS Value is ranked higher than
92% of the 1199 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.00 vs. FOR: 0.50 )
FOR' s 10-Year Price/Median PS Value Range
Min: 0.55   Max: 1.76
Current: 0.5

0.55
1.76
Price/Graham Number 0.90
FOR's Price/Graham Number is ranked higher than
57% of the 1075 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.70 vs. FOR: 0.90 )
FOR' s 10-Year Price/Graham Number Range
Min: 0.9   Max: 2.66
Current: 0.9

0.9
2.66
Earnings Yield (Greenblatt) 6.10
FOR's Earnings Yield (Greenblatt) is ranked higher than
65% of the 1199 Companies
in the Global Real Estate - General industry.

( Industry Median: 6.20 vs. FOR: 6.10 )
FOR' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.2   Max: 19.7
Current: 6.1

1.2
19.7
Forward Rate of Return (Yacktman) -3.16
FOR's Forward Rate of Return (Yacktman) is ranked higher than
59% of the 829 Companies
in the Global Real Estate - General industry.

( Industry Median: 2.61 vs. FOR: -3.16 )
FOR' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -12.6   Max: -0.3
Current: -3.16

-12.6
-0.3

Business Description

Industry: Real Estate Services » Real Estate - General
Compare:FXRE, JOE, TRC, GBH, MMPI, CTO, JPM » details
Forestar Group, Inc., is a Delaware corporation. The Company is a real estate and natural resources company. It manages its operations through three business segments: Real estate, Mineral resources, and Fiber resources. Its real estate segment provided 70 percent of its 2012 consolidated revenues. It owns about 100,000 acres in a broad area around Atlanta, Georgia, with the balance located primarily in Texas. It also develops and own directly or through ventures, multifamily communities as income producing properties, mainly in its target markets. It has 15 real estate projects representing about 26,000 acres in the entitlement process, principally in Georgia. It also have about 74 entitled, developed or under development projects in seven states and 11 markets encompassing almost 15,000 remaining acres, comprised of land planned for about 24,000 residential lots and about 2,400 commercial acres. It owns and manages projects both directly and through ventures. Its mineral resources segment provided 26 percent of its 2012 consolidated revenues. It promote the exploitation, exploration and development of oil and natural gas on its 590,000 net mineral acres owned and may participate in working interests or drill as an operator. The four principal areas of ownership are Texas, Louisiana, Alabama and Georgia. The majority of its revenues are from oil and natural gas royalties from over 542 gross productive wells operated by third parties in Texas and Louisiana and lease bonus payments received. The principal areas of operations of its leasehold interests are in Nebraska, Kansas, Oklahoma, North Dakota and Texas and include 394 gross oil and natural gas wells with working interest ownership of which it operate approximately 136 wells. Its fiber resources segment provided 4 percent of its 2012 consolidated revenues. It sells wood fiber from its land, primarily in Georgia, and lease land for recreational uses. It has about 121,000 acres of timber it own directly or through ventures and about 17,000 acres of timber under lease. The Company's competitors include other landowners who market and sell undeveloped land and numerous national, regional and local developers. The Company's operations are subject to federal, state and local laws, regulations and ordinances relating to protection of public health and the environment.

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