Forestar Group Inc. company mark
Real Estate · NYSE/NASDAQ: FOR

Forestar Group Inc.

Real Estate - Development
Market Cap $1.44B
Verdict: Average

Quality Scores

Business Compounding
68/100
Compounder Quality
66/100
Management Credibility
85/100
Governance
65/100
Cash Flow Quality
45/100

AI Summary

Forestar Group Inc. (FOR) has evolved from a diversified real estate and natural resources company into a specialized residenital lot developer primarily serving D.R. Horton. The transition, accelerated following D.R. Horton's acquisition of a majority stake in 2017, has led to a significant scaling of revenue from $236M in 2019 to $1.66B in 2025. While the business demonstrates institutional-grade scale, its operational performance is deeply intertwined with the parent company's demand and broader housing market cycles. The equity base has grown steadily, and the company has established…

Top Opportunities

  • Revenue expanded >6x from 2019 to 2025
  • Strategic relationship with D.R. Horton (largest US homebuilder)
  • Strong growth in Net Worth (nearly 3x in 10 years)

Top Risks

  • Extremely volatile Cash Flow from Operations
  • Heavy customer concentration with D.R. Horton as primary buyer
  • Interest rate sensitivity affecting land development cycles

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