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Forestar Group Inc (FOR)



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Upturn Advisory Summary
08/28/2025: FOR (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $29.25
1 Year Target Price $29.25
3 | Strong Buy |
0 | Buy |
1 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 72.14% | Avg. Invested days 46 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.41B USD | Price to earnings Ratio 8.67 | 1Y Target Price 29.25 |
Price to earnings Ratio 8.67 | 1Y Target Price 29.25 | ||
Volume (30-day avg) 4 | Beta 1.39 | 52 Weeks Range 18.00 - 34.82 | Updated Date 08/29/2025 |
52 Weeks Range 18.00 - 34.82 | Updated Date 08/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.19 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 10.54% | Operating Margin (TTM) 10.83% |
Management Effectiveness
Return on Assets (TTM) 4.36% | Return on Equity (TTM) 10.18% |
Valuation
Trailing PE 8.67 | Forward PE - | Enterprise Value 2098720514 | Price to Sales(TTM) 0.91 |
Enterprise Value 2098720514 | Price to Sales(TTM) 0.91 | ||
Enterprise Value to Revenue 1.36 | Enterprise Value to EBITDA 10.22 | Shares Outstanding 50833200 | Shares Floating 19123947 |
Shares Outstanding 50833200 | Shares Floating 19123947 | ||
Percent Insiders 62.34 | Percent Institutions 36.49 |
Upturn AI SWOT
Forestar Group Inc

Company Overview
History and Background
Forestar Group Inc. was founded in 2007 as a spin-off from Temple-Inland. It primarily focuses on residential real estate development. It has expanded its landholdings and broadened its operational scope to cater to diverse housing needs.
Core Business Areas
- Real Estate Development: Forestar acquires and develops land into finished residential lots and sells those lots to homebuilders.
Leadership and Structure
Donald J. Tomnitz is the Chairman of the Board. Dan Bartok is the CEO. The company operates with a structured management team focused on land acquisition, development, and sales.
Top Products and Market Share
Key Offerings
- Finished Residential Lots: Forestar's primary product is finished residential lots sold to homebuilders. Market share data is not readily available as it varies by region and specific housing market conditions. Competitors include other land developers such as Landsea Homes (LSEA), Five Point Holdings (FPH), and The Howard Hughes Corporation (HHC).
Market Dynamics
Industry Overview
The residential real estate development industry is influenced by factors like interest rates, housing demand, economic growth, and demographic trends. The industry is cyclical and sensitive to macroeconomic conditions.
Positioning
Forestar positions itself as a key supplier of finished lots to homebuilders, focusing on well-located land and efficient development processes. Its advantage lies in its scale, land expertise, and strong relationships with national homebuilders.
Total Addressable Market (TAM)
The TAM for residential lots is substantial, valued in the tens of billions annually in the U.S. Forestar is positioned to capture a portion of this market by focusing on high-growth regions and strategic land acquisitions.
Upturn SWOT Analysis
Strengths
- Strong relationships with national homebuilders
- Significant landholdings in attractive markets
- Experienced management team
- Efficient land development processes
Weaknesses
- Sensitivity to housing market cycles
- High capital intensity
- Dependence on homebuilder demand
- Exposure to land market fluctuations
Opportunities
- Expansion into new geographic markets
- Increased demand for entry-level housing
- Strategic land acquisitions at attractive prices
- Partnerships with homebuilders on large-scale developments
Threats
- Rising interest rates
- Economic recession
- Increased competition from other land developers
- Land entitlement and permitting delays
Competitors and Market Share
Key Competitors
- LSEA
- FPH
- HHC
Competitive Landscape
Forestar benefits from its relationship with D.R. Horton, providing a predictable demand source. However, LSEA has been making strides and HHC has a large portfolio with master planned communities.
Growth Trajectory and Initiatives
Historical Growth: Forestar's growth has been tied to the housing market's expansion, with strategic land acquisitions fueling future development.
Future Projections: Future growth is projected to continue, dependent on continued housing demand and effective land development. Analyst estimates depend on economic factors.
Recent Initiatives: Recent initiatives include strategic land acquisitions in high-growth markets and efforts to streamline land development processes.
Summary
Forestar is a land developer that capitalizes on the housing market. While the company benefits from a close relationship with DR Horton, its performance is tied to the cyclical housing market which introduces risk. Forestar needs to continue to optimize its land development processes to improve profitability. The company should monitor market trends to proactively address potential downturns.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Website
- Analyst Reports
Disclaimers:
This analysis is based on available information and is not financial advice. Market conditions can change rapidly, impacting the accuracy of projections.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Forestar Group Inc
Exchange NYSE | Headquaters Arlington, TX, United States | ||
IPO Launch date 2007-12-12 | President, CEO & Director Mr. Anthony W. Oxley | ||
Sector Real Estate | Industry Real Estate - Development | Full time employees 443 | Website https://www.forestar.com |
Full time employees 443 | Website https://www.forestar.com |
Forestar Group Inc. operates as a residential lot development company in the United States. The company acquires land and develops infrastructure for single-family residential communities. It sells its residential single-family finished lots to local, regional, and national homebuilders. The company was incorporated in 2005 and is headquartered in Arlington, Texas. Forestar Group Inc. operates as a subsidiary of D.R. Horton, Inc.

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