Forestar Group Inc.
- Open
- 29.41
- Day high
- 29.65
- Day low
- 28.05
- Prev close
- 29.90
- Volume
- 179K
- Mkt cap
- $1.4B
- P/E (TTM)
- 8.6
- EPS (TTM)
- $3.29
- P/B
- 0.8
- P/S
- 0.8
- Yield
- —
- Per share
- —
Forestar Group Inc. (FOR) is a Real Estate company listed on NYSE. The stock is up 28% over the past year.
Forestar Group Inc. (FOR) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FOR earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 21, 2026 | $0.72 | $0.63 | -12.5% | $374M | +0.2% |
| Jan 20, 2026 | $0.21 | $0.30 | +42.9% | $273M | -28.1% |
| Oct 28, 2025 | $1.26 | $1.70 | +34.9% | $671M | +20.5% |
| Jul 22, 2025 | $0.78 | $0.65 | -16.7% | $391M | -29.8% |
| Apr 17, 2025 | $0.71 | $0.64 | -9.9% | $351M | -16.3% |
| Jan 21, 2025 | $0.65 | $0.32 | -50.8% | $250M | -32.8% |
| Jul 18, 2024 | $0.88 | $0.69 | -21.6% | $318M | -36.8% |
| Apr 18, 2024 | $0.72 | $0.89 | +23.6% | $334M | +2.4% |
| Jan 23, 2024 | $0.50 | $0.76 | +52.0% | $306M | +12.3% |
| Jul 20, 2023 | $0.55 | $0.93 | +69.1% | $369M | -7.6% |
| Apr 20, 2023 | $0.34 | $0.54 | +58.8% | $302M | +40.2% |
| Jan 24, 2023 | $0.59 | $0.42 | -28.8% | $217M | -24.5% |
FOR insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Apr 2, 2026 | Allen James Douglasofficer: Chief Financial Officer | Tax | 1,667 | $24.44 |
| Apr 2, 2026 | Walker Mark Stephenofficer: Chief Operating Officer | Tax | 1,254 | $24.44 |
| Apr 2, 2026 | Allen James Douglasofficer: Chief Financial Officer | Option | 4,505 | — |
| Apr 2, 2026 | Walker Mark Stephenofficer: Chief Operating Officer | Option | 2,815 | — |
| Mar 31, 2026 | Allen James Douglasofficer: Chief Financial Officer | Tax | 737 | $24.81 |
| Mar 31, 2026 | Oxley Anthony Wdirector, officer: Chief Executive Officer | Option | 4,977 | — |
| Mar 31, 2026 | Jamieson Lisa H.director | Option | 402 | — |
| Mar 31, 2026 | Parmer Elizabethdirector | Option | 402 | — |
| Mar 31, 2026 | Oxley Anthony Wdirector, officer: Chief Executive Officer | Tax | 1,959 | $24.81 |
| Mar 31, 2026 | TOMNITZ DONALD Jdirector, officer: Executive Chairman | Tax | 1,842 | $24.81 |
| Mar 31, 2026 | Walker Mark Stephenofficer: Chief Operating Officer | Tax | 887 | $24.81 |
| Mar 31, 2026 | Walker Mark Stephenofficer: Chief Operating Officer | Option | 1,991 | — |
| Mar 31, 2026 | Allen James Douglasofficer: Chief Financial Officer | Option | 1,991 | — |
| Mar 31, 2026 | TOMNITZ DONALD Jdirector, officer: Executive Chairman | Option | 4,977 | — |
| Mar 31, 2026 | FULLER SAMUEL Rdirector | Option | 402 | — |
Source: FOR SEC Form 4 filings, latest Apr 2, 2026. For informational purposes only — not investment advice.
See the full FOR insider & 13F page →Forestar Group Inc. company profile
Overview
Forestar Group Inc. (NYSE:FOR) is a residential lot development company founded in 2007 and headquartered in Arlington, Texas. Originally established as an independent entity, Forestar became a subsidiary of D.R. Horton, Inc., the largest homebuilder in the United States, which provides the company with significant strategic advantages and financial backing. The company operates as a specialized land developer that acquires raw land and transforms it into finished residential lots ready for home construction, serving homebuilders across multiple markets in the United States.
Business
Forestar operates in the residential lot development industry, which sits at the critical intersection between raw land acquisition and homebuilding. The company's core business involves purchasing undeveloped land and transforming it into finished residential lots through infrastructure development including utilities, roads, drainage systems, and other necessary improvements that make the land suitable for single-family home construction. The residential lot development industry serves as an essential link in the housing supply chain. Raw land typically cannot be used directly for homebuilding due to lack of infrastructure, zoning issues, or regulatory requirements. Lot developers like Forestar bridge this gap by handling the complex process of land entitlement, permitting, engineering, and infrastructure installation. This process can take anywhere from 6 months to over 2 years depending on local regulations and project complexity. Forestar's business model centers on developing lots specifically for affordable housing segments, with average lot sales prices around $90,000-$100,000. This focus on affordability positions the company to serve the critical need for entry-level and first-time homebuyer housing, which represents the largest segment of housing demand driven by favorable demographics and limited existing supply. The company operates as a single business segment focused entirely on lot development, with no meaningful diversification into other real estate activities such as homebuilding, commercial development, or property management.
Revenue model
Forestar generates revenue through direct lot sales to homebuilders, operating on a business-to-business model where finished lots are sold at predetermined prices upon completion of development. The company's primary revenue stream comes from the margin between land acquisition costs plus development expenses versus the final sales price of finished lots. The company's customer base consists of homebuilders, with D.R. Horton representing approximately 85-90% of sales while the remaining 10-15% comes from over 20 other regional and national homebuilders. This concentrated customer relationship with D.R. Horton provides predictable demand and streamlined operations, though it also creates customer concentration risk. Forestar's profitability is influenced by several key factors that can expand or compress margins. Positive margin drivers include rising home prices that support higher lot values, efficient development execution that reduces cycle times, economies of scale from larger projects, and the company's ability to secure favorable land acquisition prices. The company targets a 15% pretax return on development projects and has historically achieved gross margins in the low-to-mid 20% range. Margin pressures can arise from several sources including rising raw land prices, increased development costs due to labor shortages or material inflation, extended governmental approval processes that increase carrying costs and delay revenue recognition, rising interest rates that increase financing costs for both the company and its homebuilder customers, and potential oversupply in specific markets that could pressure lot pricing. Additionally, as a capital-intensive business, Forestar's returns are sensitive to the efficiency of capital deployment and inventory turnover rates.
Competitive moat
Forestar's competitive position is moderately strong but not insurmountable, deriving primarily from its strategic relationship with D.R. Horton and operational scale advantages rather than from traditional economic moats. The company's most significant competitive advantage stems from its captive customer relationship with D.R. Horton, which provides predictable demand, streamlined coordination between lot development and home construction, and reduced marketing costs compared to independent lot developers. The company also benefits from scale advantages in land acquisition, development execution, and financing. Forestar's size allows it to pursue larger land parcels that smaller developers cannot handle, negotiate better terms with contractors and suppliers, and access corporate-level financing rather than relying on more expensive project-level financing. The company's growing market presence and relationships with multiple homebuilders provide additional stability and growth opportunities. However, these advantages face meaningful competitive threats. The lot development industry remains fragmented with relatively low barriers to entry for well-capitalized competitors. Local and regional developers often possess superior market knowledge and established relationships with local officials, contractors, and suppliers. Additionally, some large homebuilders are increasingly developing their own lots internally, potentially reducing demand for third-party developers like Forestar. The regulatory environment presents both opportunities and challenges. While complex permitting and approval processes can deter smaller competitors, they also create execution risks and can significantly impact project economics. Furthermore, Forestar's heavy dependence on D.R. Horton, while providing stability, also creates vulnerability should that relationship change or should D.R. Horton's business face significant challenges.
Risks & safety
Forestar presents a moderate margin of safety with solid financial fundamentals but some cyclical and operational risks. • Liquidity and Solvency: Strong cash position of $174 million with total liquidity of $792 million including available credit facilities. Net debt-to-capital ratio of 29.8% is manageable, though the company does carry meaningful debt levels. • Cash Flow Characteristics: Operating cash flows can be volatile due to the timing-intensive nature of lot development, with recent quarters showing negative operating cash flows of -$450 million (Q1 2025) and -$19.8 million (Q2 2025) as the company invests heavily in land acquisition and development. • Valuation Metrics: Current P/E ratio of 8.5x appears reasonable for a cyclical business, though EV/EBITDA of 10.4x suggests modest premium pricing. Price-to-book ratio of 0.65x indicates trading below book value. • Asset Quality: Total assets of $3.0 billion are primarily land and development investments, which carry inherent market and execution risks. Current ratio of 0.54x indicates potential short-term liquidity concerns, though this is partially offset by the company's credit facilities. • Other Considerations: The business model requires substantial upfront capital investment with returns realized over 1-3 year development cycles, creating timing and execution risks. Customer concentration with D.R. Horton creates both stability and vulnerability.
Recent development
Over the past several years, Forestar has pursued an aggressive market expansion and scale-building strategy. The company has significantly expanded its geographic footprint, entering 10 new markets in recent periods and increasing its community count by 21-25% year-over-year. This expansion is part of management's stated goal to double market share from approximately 2.5% to 5% in the intermediate term. The company has substantially increased its investment in land acquisition and development, with fiscal 2024 investments reaching $1.6 billion and plans to invest approximately $2 billion in fiscal 2025. This represents a strategic shift toward building greater scale and market presence, with 75-79% of investments focused on land development versus acquisition, indicating a focus on inventory turnover rather than land banking. Operational improvements have been a key focus, with management working to reduce development cycle times that had extended due to governmental approval delays. The company has successfully reduced cycle times by 30-60 days from peak levels, though they remain elevated compared to historical norms. Staffing has been expanded by approximately 30% to support the growth strategy and improved execution capabilities. Forestar has also worked to diversify its customer base beyond D.R. Horton, though progress has been gradual. The company now sells to over 20 homebuilders compared to being almost entirely dependent on D.R. Horton historically, though D.R. Horton still represents 85-90% of sales. Management has expressed a long-term goal of selling 30% of lots to third-party builders, which would reduce customer concentration risk and potentially improve pricing power.
FOR company profile · for informational purposes only — not investment advice.
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