| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 93 | 8.0x | 17.8x | Top tier | |
Growth | 45 | 11.8% | 7.1% | Around median | |
Quality | 55 | 6.1% | 4.5% | Around median | |
Safety | 68 | 1.8x | 2.6x | Top tier | |
Capital Return | 88 | — | 2.12% | Top tier | |
Momentum | 48 | 5.0% | 2.9% | Around median | |
Sentiment | 37 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Forestar Group Inc. is a national developer of residential land and building lots, generating revenue by developing residential lots and selling them to homebuilders. D.R. Horton is its largest and most important customer; 14% of the homes D.R. Horton started during the twelve months ended June 30, 2026 were built on lots developed by Forestar, while the company sold 289 lots, representing 8% of quarterly deliveries, to 12 other customers. Forestar manages more than 200 active projects, with 91.7 thousand lots owned or under purchase contracts as of June 30, 2026.
In fiscal Q3 2026, revenue increased 4% year over year to $407.0 million from the sale of 3.66 thousand lots at an average of $109 thousand per lot. Gross profit was $84.1 million, equivalent to a gross margin of 20.7% versus 20.4% a year earlier, and pre-tax income rose 12% to $48.7 million, with its margin improving to 12.1% from 11.2%. Net income attributable to Forestar increased 9% to $35.9 million, while diluted earnings per share rose 8% to $0.70.
The delivery mix reflects significant reliance on D.R. Horton, as the 12 other customers accounted for only 8% of lots delivered in fiscal Q3 2026. At the same time, Forestar ended the quarter with approximately $1.1 billion in liquidity, $1.9 billion in shareholders’ equity, and a book value of $36.40 per share, up 10% year over year, supporting its ability to finance land development in an environment where project financing has become less available and more expensive for some competitors.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $28.38, with a Buy consensus, but it is approximately 11.5% below the 52-week range high of $32.06. Estimates range from $13.50 to $40, a wide spread reflecting significant disagreement over the impact of slower lot absorption and customer concentration versus strong liquidity and the contracted backlog. The data do not provide a published price-to-earnings ratio, so the stock’s valuation here is based on the 52-week range of $22.81 to $32.06 and the dispersion of analyst targets rather than a comparable earnings multiple.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Forestar recorded revenue of $407.0 million in fiscal Q3 2026, up 4% year over year, after selling 3.66 thousand lots at an average of $109 thousand per lot. Gross profit was $84.1 million and gross margin was 20.7%, versus 20.4% a year earlier. Net income attributable to the company rose 9% to $35.9 million, while diluted earnings per share were $0.70, up 8%.
Forestar described D.R. Horton as its largest and most important customer. During the twelve months ended June 30, 2026, 14% of the homes started by D.R. Horton were built on lots developed by Forestar. In fiscal Q3 2026, Forestar sold only 289 lots to 12 other customers, representing 8% of total deliveries, while the two parties aim for a Forestar lot to be behind one of every three homes sold by D.R. Horton.
As of June 30, 2026, 23.5 thousand lots, representing 38% of owned lots, were under contract for sale. These contracts are supported by $202 million in nonrefundable earnest money deposits and are expected to produce approximately $2.3 billion in future revenue. Most of the 9.6 thousand completed lots were also under sales contracts, and the company maintained guidance to deliver 14 thousand to 14.5 thousand lots in fiscal 2026.
Forestar ended fiscal Q3 2026 with approximately $1.1 billion in liquidity, including $395 million in cash and $670 million available under an undrawn revolving credit facility. Total debt was $794 million and the net debt-to-capital ratio was 17.7%, with no senior note maturities during the twelve months following June 30, 2026. Shareholders’ equity was also $1.9 billion, and the company targeted approximately $1.4 billion in land acquisition and development investment during fiscal 2026, subject to market conditions.
Gross margin was 20.7% in fiscal Q3 2026, at the low end of the 21% to 23% historical range discussed by analysts on the call. Management explained that the primary cause was the delivery mix and slower absorption environment, rather than a specific increase in diesel fuel costs. It also said direct development costs were stable during the twelve months ended July 2026, with decreases in some items and increases in others, without a significant decline in overall costs.
The analyst consensus for FOR stock is Buy, with an average price target of $28.38. However, targets range from $13.50 to $40, revealing significant disagreement over the impact of the contracted backlog and liquidity versus weak demand and customer concentration. The average target is approximately 11.5% below the 52-week range high of $32.06, while the data do not include a published price-to-earnings ratio that could be used as an additional valuation anchor.
