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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Forestar Group's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was -2.04%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Forestar Group's 3-Year ROIIC % or its related term are showing as below:
FOR's 3-Year ROIIC % is ranked worse than 67.75% of 1659
companies
in the Real Estate industry
Industry Median: 2.27
vs FOR: -2.04
Forestar Group (NYSE:FOR) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Forestar Group 3-Year ROIIC % Related Terms
Forestar Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Forestar Group's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Forestar Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Forestar Group's 3-Year ROIIC % falls into.
Forestar Group's 3-Year ROIIC % for the quarter that ended in Sep. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 160.08696 (Sep. 2025) - 174.71232 (Sep. 2022) )
/
( 2933.7 (Sep. 2025) - 2215.9 (Sep. 2022) )
=
-14.62536
/
717.8
=
-2.04%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Forestar Group (FOR) has a 3-Year ROIIC % of -2.04 as of Sep. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Forestar Group and its competitors. According to the industry distribution chart, Forestar Group ranks #1124 out of 1659 companies in the Real Estate industry, placing it in the top 67.8%.
Is Forestar Group's 3-Year ROIIC % too high?
Forestar Group's current 3-Year ROIIC % is -2.04. Based on the distribution chart, Forestar Group ranks #1124 out of 1659 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 3-Year ROIIC % compare to CCS and FPH?
According to the Real Estate industry distribution chart, Forestar Group ranks #1124 out of 1659 companies for 3-Year ROIIC %. This places Forestar Group in the lower half of its industry. The industry median 3-Year ROIIC % is 2.27. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Real Estate company?
The median 3-Year ROIIC % among Real Estate companies is 2.27, based on 1,659 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Forestar Group and its competitors. For the Real Estate industry, the median 3-Year ROIIC % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forestar Group's current 3-Year ROIIC % is -2.04. 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 3-Year ROIIC % is -2.04. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Forestar Group (FOR), the current 3-Year ROIIC % is -2.04 as of Sep. 2025. 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:
3-Year ROIIC %: -2.04
GF Value™: $30.11 vs. price of $29.29 (2.7% below fair value)
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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