Detailed financial statements for Forestar Group Inc. (FOR): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Forestar Group Inc. is an American company primarily engaged in developing residential lots. Its business model entails acquiring land, then preparing the necessary infrastructure for new single-family housing communities. These fully developed lots are subsequently sold to various home construction companies. Headquartered in Arlington, Texas, Forestar operates as a subsidiary of D.R. Horton, Inc.
Analysis Summary
Forestar Group Inc. reported revenue of $1.64B in the most recent fiscal year, growing at a 5-year CAGR of 4.3%. Net income reached $142.6M, with a 5.3% 5-year CAGR.
Trailing-twelve-month margins: gross margin 13.4%, operating margin 6.5%, net margin 8.7%.
At $25.03 (closing price, October 29, 2026), FOR trades at a P/E of 9.00 and an ROE of 7.73%. Market capitalisation stands at $1.3B.
Balance sheet quality for FOR: current ratio of 0.0, net debt of $437.9M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is below average: free cash flow of -$199.9M represents -140% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $114.3M | $104.4M | $428.3M | $931.8M | $1.33B | $1.52B | $1.44B | $1.51B | $1.66B | $1.64B |
| Cost of Revenue | $109.8M | $65.5M | $362.7M | $813.7M | $1.10B | $1.20B | $1.13B | $1.15B | $1.30B | 0 |
| Gross Profit | $4.5M | $38.8M | $65.6M | $118.1M | $229.2M | $324.0M | $304.1M | $359.3M | $363.5M | 0 |
| Research & Development | 0 | $1 | $0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $56.5M | $1 | $28.9M | $45.7M | $68.4M | $93.6M | $97.7M | $118.5M | $154.4M | $151.0M |
| Operating Expenses | $78.2M | $10.0M | $28.9M | $45.7M | $68.4M | $93.6M | $97.7M | $118.5M | $154.4M | $151.0M |
| Operating Income | $39.8M | $17.8M | $36.7M | $72.4M | $160.8M | $230.4M | $206.4M | $240.8M | $209.1M | 0 |
| EBITDA | $66.1M | $23.0M | $43.4M | $77.3M | $149.3M | $238.5M | $224.6M | $273.1M | $222.8M | 0 |
| Interest Expense | $8.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pre-tax Income | $52.1M | $49.8M | $45.7M | $78.1M | $146.6M | $235.8M | $221.6M | $270.1M | $219.3M | $192.1M |
| Income Tax | $45.8M | $49.8M | $9.4M | $16.4M | $36.1M | $57.0M | $54.7M | $66.7M | $51.4M | $49.1M |
| Net Income | $50.3M | $59.5M | $33.0M | $60.8M | $110.2M | $178.8M | $166.9M | $203.4M | $167.9M | $142.6M |
| EPS | $1.19 | $1.42 | $0.79 | $1.27 | $2.25 | $3.59 | $3.34 | $4.04 | $3.30 | $2.79 |
| EPS (Diluted) | $1.19 | $1.42 | $0.79 | $1.26 | $2.25 | $3.59 | $3.33 | $4.00 | $3.29 | $2.78 |
| Shares Outstanding (Diluted) | 42.4 M | 42.0 M | 42.0 M | 48.1 M | 49.0 M | 49.8 M | 50.1 M | 50.8 M | 50.9 M | 51.1 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $273.0M | $374.3M | $407.0M | $580.8M |
| Gross Profit | $55.0M | $80.2M | $84.1M | 0 |
| Operating Income | $18.5M | $42.3M | $45.8M | 0 |
| EBITDA | $19.4M | $43.0M | $46.5M | 0 |
| Net Income | $15.4M | $32.1M | $35.9M | $59.2M |
| EPS | $0.30 | $0.63 | $0.70 | $1.16 |
| EPS (Diluted) | $0.30 | $0.63 | $0.70 | $1.15 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $265.8M | $321.8M | $335.0M | $382.8M | $394.3M | $153.6M | $264.8M | $616.0M | $481.2M | $379.2M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $19.8M | $11.8M | $7.1M | $4.3M | $11.5M | $1.1M | $11.4M | $25.7M | $37.3M | $21.6M |
| Inventory | 0 | 0 | -$885.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $318.3M | $559.3M | $349.3M | $395.6M | $416.2M | $170.1M | $295.1M | $657.4M | $531.7M | $418.3M |
| Property, Plant & Equipment | $3.1M | $2.0M | $1.7M | $3.4M | $4.7M | $20.2M | $23.4M | $20.5M | $40.1M | $56.3M |
| Goodwill | $37.9M | 0 | $26.4M | $17.4M | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | $448,000 | $500,000 | $1.01B | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Assets | $733.2M | $761.9M | $893.1M | $1.46B | $1.74B | $2.10B | $2.34B | $2.47B | $2.84B | $3.14B |
| Accounts Payable | $4.8M | $2.4M | $7.9M | $16.8M | $29.2M | $47.4M | $72.2M | $68.4M | $85.9M | $71.0M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | $41.0M | $33.9M | $43.9M | $183.5M | $216.1M | $348.3M | $391.7M | $343.3M | $455.2M | $442.7M |
| Long-term Debt | $110.4M | $108.4M | $111.7M | $460.5M | $641.1M | $704.5M | $706.0M | $695.0M | $706.4M | $802.7M |
| Total Liabilities | $171.1M | $156.3M | $41.9M | $646.8M | $868.1M | $1.09B | $1.14B | $1.10B | $1.25B | $1.37B |
| Retained Earnings | $12.6M | $56.3M | $673.4M | $158.1M | $218.9M | $329.1M | $507.9M | $674.8M | $878.2M | $1.05B |
| Total Equity | $560.7M | $604.2M | $893.1M | $808.3M | $870.9M | $1.01B | $1.20B | $1.37B | $1.59B | $1.77B |
| Total Debt | $110.4M | $108.4M | $9.2M | $460.5M | $644.9M | $711.8M | $714.1M | $703.1M | $716.6M | $817.1M |
| Net Debt | -$155.4M | -$213.4M | -$325.8M | $77.7M | $250.6M | $558.2M | $449.3M | $87.1M | $235.4M | $437.9M |
| Working Capital | $277.2M | $525.4M | $305.4M | $212.1M | $200.1M | -$178.2M | -$96.6M | $314.1M | $76.5M | -$24.4M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $60.2M | $52.3M | $91.8M | $36.3M | $61.7M | $110.5M | $178.8M | $166.9M | $203.4M | $167.9M |
| Depreciation & Amortization | $976,000 | $5.5M | $5.2M | $6.7M | $4.9M | $2.7M | $2.7M | $3.0M | $3.0M | $3.5M |
| Stock-based Compensation | $4.0M | $6.6M | $4.4M | $1.3M | $2.0M | $2.6M | $3.3M | $4.3M | $5.3M | $7.3M |
| Change in Working Capital | -$2.4M | -$1.7M | $56.4M | -$447.8M | -$260.3M | -$456.6M | -$96.7M | $153.7M | -$381.5M | -$398.4M |
| Operating Cash Flow | $66.9M | -$16.2M | -$285.3M | -$391.2M | -$168.4M | -$303.1M | $108.7M | $364.1M | -$158.4M | -$197.7M |
| Capital Expenditure | -$6.7M | -$2.5M | -$48,000 | -$900,000 | -$600,000 | -$1.6M | -$3.5M | -$1.3M | -$2.2M | -$2.2M |
| Acquisitions | -$389,000 | $6.8M | 0 | $100,000 | $4.3M | 0 | $1.6M | $1.6M | 0 | $4.5M |
| Stock Repurchased | -$3.5M | 0 | 0 | -$100,000 | -$300,000 | -$600,000 | -$500,000 | -$700,000 | -$3.4M | -$1.8M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $60.2M | -$18.7M | -$285.3M | -$392.1M | -$169.0M | -$304.7M | $105.2M | $362.8M | -$160.6M | -$199.9M |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | -8.7% | +310.3% | +117.6% | +42.3% | +14.6% | -5.4% | +5.0% | +10.1% | -1.6% | |
| Net Income Growth (YoY) | +18.5% | -44.6% | +84.2% | +81.2% | +62.3% | -6.7% | +21.9% | -17.5% | -15.1% | |
| EPS Growth (YoY) | +19.3% | -44.4% | +60.8% | +77.2% | +59.6% | -7.0% | +21.0% | -18.3% | -15.5% | |
| Shares Change (YoY) | -0.9% | -0.0% | +14.5% | +1.8% | +1.8% | +0.6% | +1.3% | +0.2% | +0.4% | |
| FCF Growth (YoY) | -131.0% | -1,428.5% | -37.4% | +56.9% | -80.3% | +134.5% | +244.9% | -144.3% | -24.5% | |
| Gross Margin | 4.0% | 37.2% | 15.3% | 12.7% | 17.3% | 21.3% | 21.2% | 23.8% | 21.9% | 0.0% |
| Operating Margin | 34.8% | 17.1% | 8.6% | 7.8% | 12.1% | 15.2% | 14.4% | 16.0% | 12.6% | 0.0% |
| EBITDA Margin | 57.8% | 22.0% | 10.1% | 8.3% | 11.3% | 15.7% | 15.6% | 18.1% | 13.4% | 0.0% |
| Net Margin | 44.0% | 57.0% | 7.7% | 6.5% | 8.3% | 11.8% | 11.6% | 13.5% | 10.1% | 8.7% |
| FCF Margin | 52.6% | -17.9% | -66.6% | -42.1% | -12.7% | -20.1% | 7.3% | 24.0% | -9.7% | -12.2% |
| Effective Tax Rate | 87.9% | 100.0% | 20.6% | 21.0% | 24.6% | 24.2% | 24.7% | 24.7% | 23.4% | 25.6% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $1.42 | $-0.44 | $-6.79 | $-8.15 | $-3.45 | $-6.11 | $2.10 | $7.14 | $-3.16 | $-3.91 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | 42.1 M | 41.9 M | 42.0 M | 48.0 M | 48.9 M | 49.8 M | 50.0 M | 50.4 M | 50.9 M | 51.1 M |
What to look at in Reit companies
- FFO / Share (Positive growth) — REIT 'true EPS' — net income + depreciation.
- Dividend coverage (FFO/div) (>=1.1x) — FFO must cover the dividend with margin.
- Net Debt / EBITDA (<=6x) — NAREIT benchmark. Normalises leverage by cash generation.
- Debt / Assets (40-60%) — REITs use a lot of debt by design. >65% fragile when rates rise.
- FFO Payout (proxy) (<80%) — Dividends / Operating CF. Quality REITs retain >20% to grow.
- P/FFO (15-20x) — REIT P/E equivalent. Healthy typical range.
Profitability
| Return on Equity | 7.73% |
| Return on Invested Capital | 13.24% |
| Return on Assets | 4.31% |
| Gross Margin | 13.41% |
| Operating Margin | 6.52% |
| Net Margin | 8.72% |
Financial Health
| Debt / Equity | 0.00 |
| Current Ratio | 10.19 |
| Piotroski F-Score | 2 |
| Altman Z-Score | 1.80 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 18.49 | 14.82 | 23.14 | 13.94 | 8.28 | 3.12 | 8.07 | 8.01 | 8.06 | 9.23 |
| P/B | 1.53 | 0.99 | 0.95 | 0.98 | 0.90 | 0.47 | 0.98 | 1.02 | 0.77 | 0.00 |
| P/S | 8.11 | 8.45 | 1.79 | 0.91 | 0.69 | 0.37 | 0.94 | 1.08 | 0.81 | 0.80 |
| Gross Margin | 4.0% | 37.2% | 15.3% | 12.7% | 17.3% | 21.3% | 21.2% | 23.8% | 21.9% | 0.0% |
| Operating Margin | 34.8% | 17.1% | 8.6% | 7.8% | 12.1% | 15.2% | 14.4% | 16.0% | 12.6% | 0.0% |
| Net Margin | 44.0% | 57.0% | 7.7% | 6.5% | 8.3% | 11.8% | 11.6% | 13.5% | 10.1% | 8.7% |
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