Long term Growth Analysis of Forestar Group Inc (NYSE:FOR)


Quarterly Sales and EPS Roundup:

Forestar Group Inc (NYSE:FOR) reported sales (ttm) of 246.8 Million, whereas, 3 number of analysts estimated the mean sale of 55.94 million. The analysts estimated sales for the higher end at 65.92 million and lower end at 48 million while the year ago reported sale was 72.77 million.

2 number of analysts have estimated the sales of the company for the quarter ending Nov 2, 2016- Nov 7, 2016, analysts estimated mean sale target of 30.96 million while high and low sale targets are estimated at 32.6 million and 29.32 million respectively.

Forestar Group Inc (NYSE:FOR) reported earning per shares for the quarter ending Nov 08 AMC at 0.23, whereas, 3 number of analysts estimated the mean EPS at 0.2. The analysts estimated EPS for the higher end at 0.36 and lower end at 0.11 while the year ago reported earnings per share was 0.23.

The company has mean EPS estimate of 0.08 reported by 2 number of analyst for the quarter ending Nov 2, 2016- Nov 7, 2016. The analysts estimated mean EPS at 0.08 while the high and low EPS estimate stand at 0.08 and 0.08 respectively. In contrast to the year ago quarter EPS was at 0. EPS long term mean growth rate estimated by 1 analysts is at 10%, whereas, the high and low Long term growth rate estimated at 10 and 10.

Valuation Ratios of Forestar Group Inc (NYSE:FOR) versus the Industry and Sector:

Let’s have a look at some of the important valuation ratios of the Forestar Group Inc (NYSE:FOR). These ratios are important while doing valuation of the company or the shares of the company.

Forestar Group Inc (NYSE:FOR) currently has P/E (Price to Earnings) ratio of 24.65 while the company’s industry has 22.63 P/E and the sector P/E is 15.83. Similarly, the company’s last 5 years high P/E ratio is 75.67 and low P/E is 27.25, whereas, the industry’s and sector’s  high P/E for the past year is 134.48 and 26.4 respectively and low P/E ratio for the last 5 years is 13.06 for the industry and 12.02 for the Sector.

Beta is also an important valuation ratio for analyzing the stock of the company, 47 has Beta of 1.79 while its industry and Sector’s beta remains at 1.69 and 1.49 respectively.

Price to Sale ratio of 47 stands at 1.75 while Price to Book Ratio stands at 0.84. Its Price to Cash Flow ratio shows the value of 9.31, whereas, the industry and sector ratio of Price to Cash Flow ticked at 16.28 and 12.98 respectively.

5 Year Growth Rate Analysis:

Growth rates are very important while analyzing the long term growth and valuation of a certain company.

5 year sales growth rate is an important factor for valuation analysis, the 5 year sales growth of Forestar Group Inc (NYSE:FOR) stands at 20.96 while the industry’s and the sector’s growth for next 5 years ticked at 15.08 and 15.32 respectively. The company’s 5 year Earnings per share growth and Capital Spending growth remains at 0 and 88.56.

Forestar Group Inc (NYSE:FOR) Trading Statistics:

The company surged 1.92% and closed its last trading session at $13.05. The market capitalization of the company is at $448.48 Million. The stock touched 52-week High of $13.98 on Apr 27, 2016 and 52-week Low of $7.95 on Jan 20, 2016. The stock currently has Weekly Volatility of 2.42% and Monthly Volatility of 3.00%. The Beta for the company stands at 1.81 and its Average True Range (ATR) shows a value of 0.35.