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Forestar GroupFOR +0.33%83 Gross Margin % is 20.66% as of Jun. 2026, which is 7% above its 10-year median of 19.23. GuruFocus rates FOR with a GF Score™ of 83/100 and a GF Value™ of $30.11 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,641 Real Estate companies, Forestar Group ranks worse than 73.07% on this metric.
Forestar Group (NYSE:FOR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Forestar Group had a gross margin of 20.66% for the quarter that ended in Jun. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Forestar Group Gross Margin % Related Terms
Forestar Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Forestar Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Real Estate - Development subindustry, Forestar Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Forestar Group Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Forestar Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Forestar Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Forestar Group (FOR) has a Gross Margin % of 20.66% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Forestar Group and its competitors. This is near median its historical median of 19.23. Over the past decade, Forestar Group's Gross Margin % has ranged from 1.49 to 45.11. According to the industry distribution chart, Forestar Group ranks #1199 out of 1641 companies in the Real Estate industry, placing it in the top 73.1%.
Is Forestar Group's Gross Margin % too high?
Forestar Group's current Gross Margin % of 20.66% is near median its 10-year median of 19.23. Over the past 10 years, this metric has ranged from a low of 1.49 to a high of 45.11. The Real Estate industry median Gross Margin % is 36.36. Forestar Group's value of 20.66% is 43.2% below this industry median. Based on the distribution chart, Forestar Group ranks #1199 out of 1641 companies in the Real Estate industry, which is below the industry midpoint. Overall, Forestar Group has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Forestar Group's Gross Margin % compare to CCS and FPH?
According to the Real Estate industry distribution chart, Forestar Group ranks #1199 out of 1641 companies for Gross Margin %. This places Forestar Group in the lower half of its industry. The industry median Gross Margin % is 36.36. Forestar Group's value of 20.66% is 43.2% below this benchmark. Historically, Forestar Group's own Gross Margin % has ranged from 1.49 to 45.11 over the past decade. While the company's 10-year median is 19.23 vs. the industry median of 36.36, Forestar Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Real Estate company?
The median Gross Margin % among Real Estate companies is 36.36, based on 1,641 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Forestar Group's current Gross Margin % of 20.66% is 43.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Forestar Group and its competitors. For the Real Estate industry, the median Gross Margin % is 36.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forestar Group's current Gross Margin % is 20.66%, which is near median its own 10-year median of 19.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forestar Group stock overvalued right now?
Based on GuruFocus' analysis, Forestar Group (FOR) is currently considered Fairly Valued. The stock's GF Value™ is $30.11, compared to a current price of $29.29 — trading 2.7% below its estimated fair value. The current Gross Margin % is 20.66%, which is near median its 10-year median of 19.23 and 43.2% below the Real Estate industry median of 36.36. Forestar Group's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Forestar Group (FOR), the current Gross Margin % is 20.66% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Forestar Group (FOR) Overvalued in 2026?
Based on GuruFocus' analysis, Forestar Group stock appears to be undervalued.
The current stock price of $29.29 is trading 2.7% below its estimated GF Value™ of $30.11.
GuruFocus considers Forestar Group to be Fairly Valued.
Key valuation signals for FOR:
Gross Margin %: 20.66% (near median its 10-year median of 19.23)
GF Value™: $30.11 vs. price of $29.29 (2.7% below fair value)
Industry Position: 43.2% below the Real Estate median (#1199 of 1641)
No single metric tells the full story. See the FOR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Forestar Group Inc is a residential lot development company engaged in land acquisition and development for the sale of finished single-family residential lots to local, regional, and national homebuilders. The company operates through a single real estate segment, which acquires land, installs infrastructure for residential communities, and generates all revenue from lot sales. Its communities mainly support entry-level, first-time move-up, and active-adult homes, with certain communities also marketed to build-to-rent operators. The company generally invests in entitled, short-duration projects that can be developed in phases to align lot production with market demand and support efficient capital deployment.
83GF Score
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