Forestar GroupFOR +5.28%83 ROE % is 7.12% as of Mar. 2026, which is 32% below its 10-year median of 10.52. GuruFocus rates FOR with a GF Score™ of 83/100 and a GF Value™ of $30.18 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,732 Real Estate companies, Forestar Group ranks better than 72.86% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Forestar Group's annualized net income for the quarter that ended in Mar. 2026 was $128 Mil. Forestar Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $1,802 Mil. Therefore, Forestar Group's annualized ROE % for the quarter that ended in Mar. 2026 was 7.12%.
The historical rank and industry rank for Forestar Group's ROE % or its related term are showing as below:
FOR'
s ROE % Range Over the Past 10 Years
Min: -35.25 Med: 10.52 Max: 16.16
Current: 9.62
During the past 13 years, Forestar Group's highest ROE % was 16.16%. The lowest was -35.25%. And the median was 10.52%.
FOR's ROE % is ranked better than 72.86% of 1732
companies
in the Real Estate industry
Industry Median: 3.98
vs FOR: 9.62
Forestar Group (NYSE:FOR) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Forestar Group ROE % Related Terms
Forestar Group ROE % Historical Data
* Premium members only.
The historical data trend for Forestar Group's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Forestar Group's ROE % distribution charts can be found below:
* The bar in red indicates where Forestar Group's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Forestar Group (FOR) has a ROE % of 7.12% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Forestar Group and its competitors. This is 32% below median its historical median of 10.52. According to the industry distribution chart, Forestar Group ranks #470 out of 1732 companies in the Real Estate industry, placing it in the top 27.1%.
Is Forestar Group's ROE % too high?
Forestar Group's current ROE % of 7.12% is 32% below median its 10-year median of 10.52. The Real Estate industry median ROE % is 3.98. Forestar Group's value of 7.12% is 78.9% above this industry median. Based on the distribution chart, Forestar Group ranks #470 out of 1732 companies in the Real Estate industry, which is above 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 ROE % compare to CCS and FPH?
According to the Real Estate industry distribution chart, Forestar Group ranks #470 out of 1732 companies for ROE %. This puts Forestar Group in the upper half of its industry. The industry median ROE % is 3.98. Forestar Group's value of 7.12% is 78.9% above this benchmark. While the company's 10-year median is 10.52 vs. the industry median of 3.98, Forestar Group has consistently been above 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 ROE % for a Real Estate company?
The median ROE % among Real Estate companies is 3.98, based on 1,732 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Forestar Group's current ROE % of 7.12% is 78.9% above 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Forestar Group and its competitors. For the Real Estate industry, the median ROE % is 3.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forestar Group's current ROE % is 7.12%, which is 32% below median its own 10-year median of 10.52. 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 $30.18, compared to a current price of $30.93 — trading 2.5% above its estimated fair value. The current ROE % is 7.12%, which is 32% below median its 10-year median of 10.52 and 78.9% above the Real Estate industry median of 3.98. Forestar Group's overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Forestar Group (FOR), the current ROE % is 7.12% as of Mar. 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 overvalued.
The current stock price of $30.93 is trading 2.5% above its estimated GF Value™ of $30.18.
GuruFocus considers Forestar Group to be Fairly Valued.
Key valuation signals for FOR:
ROE %: 7.12% (32% below median its 10-year median of 10.52)
GF Value™: $30.18 vs. price of $30.93 (2.5% above fair value)
Industry Position: 78.9% above the Real Estate median (#470 of 1732)
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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