Forestar Group Inc. cash flow to debt ratio of -24.20% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Forestar Group Inc.'s free cash flow has decreased 24.47% from $-160.60M last year to $-199.90M, signaling decreasing performance

Forestar Group Inc.'s debt to equity ratio is 0.44, which means that the company's assets are healthy financed, signaling financial stability.

Forestar Group Inc.'s debt has decreased relative to shareholder equity from 0.45 last year to 0.44 today, signaling strengthened financials

Forestar Group Inc. has a net debt to EBITDA ratio of 1.97x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Forestar Group Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Forestar Group Inc.'s profit margin has decreased (26.69%) in the last year from 13.48% to 9.88%, signaling decreasing performance

Forestar Group Inc.'s short-term liabilities of $442.70M exceed its short-term assets of $418.30M, signaling financial risk

Forestar Group Inc.'s return on assets of 5.29% is higher than the 5.00% threshold, indicating efficient asset utilization

Forestar Group Inc.'s return on equity of 9.42%, is lower than 15.00%, indicating bad performance

Forestar Group Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Forestar Group Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Forestar Group Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

Forestar Group Inc. has negative free cash flow, indicating cash burn

Forestar Group Inc.'s yearly earnings has decreased 17.45% since last year from $203.40M to $167.90M, signaling decreasing performance

Forestar Group Inc.'s yearly revenue has increased 10.14% since last year from $1.51B to $1.66B, signaling increasing performance

ROIC 5.77% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Forestar Group Inc.'s 3-year revenue CAGR of 3.05% is positive, indicating growing revenue over the past 3 years

Forestar Group Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Forestar Group Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Forestar Group Inc. has insufficient data to evaluate this check.

Forestar Group Inc. has an earnings yield of 11.71%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Forestar Group Inc. is overvalued relative to its fair value price of 22.05 based on EBITDA multiple model

Forestar Group Inc. has an EV/EBITDA ratio of 8.50x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Forestar Group Inc. is undervalued relative to its fair value price of 86.50 based on Earnings Fair Value model

Forestar Group Inc. has a PEG-ratio under 1 which is considered undervalued

Forestar Group Inc. has a price-to-book ratio of 0.78x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Forestar Group Inc. has a price-to-sales ratio of 0.84x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue