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Forestar Group Inc. key statistics and ratios

In fiscal 2025, Forestar Group Inc. had return on equity of 10.0%, a net margin of 10.1% and debt equal to 45.4% of equity. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2010Dec 20092011Dec 20102012Dec 20112013Dec 20122014Dec 20132015Dec 20142016Dec 20152017Dec 20162018Dec 20172019Sept 20192020Sept 20202021Sept 20212022Sept 20222023Sept 20232024Sept 20242025Sept 2025LTMJun 2026
Gross margin————————1.5%15.3%12.7%17.3%21.3%21.2%23.8%21.9%21.4%
Operating margin85.5%18.6%42.9%15.7%14.1%29.6%11.0%71.1%34.8%————————
Net margin40.4%5.1%5.3%7.5%8.9%7.0%−97.5%29.7%44.0%7.7%6.5%8.3%11.8%11.6%13.5%10.1%9.9%
Free-cash-flow margin92.2%10.7%27.9%−14.5%23.2%38.1%9.3%30.9%−13.5%−91.5%−18.1%−23.0%6.9%25.2%−10.6%−12.0%16.4%
Return on equity11.4%1.0%1.4%2.5%4.7%2.3%−35.2%11.0%8.6%4.7%7.2%11.7%16.2%13.0%13.7%10.0%9.4%
Return on assets—0.6%0.9%1.5%2.8%1.4%−19.1%6.9%6.7%3.0%3.8%5.7%8.0%6.9%7.7%5.6%5.4%
Asset turnover—0.130.170.200.320.200.200.230.150.390.580.690.680.600.570.560.54
Debt to equity0.0%43.5%43.5%55.5%50.4%61.2%76.1%19.7%17.9%57.0%73.6%69.4%58.9%50.8%44.3%45.4%42.8%
Interest cover (operating income ÷ interest)6.1x1.1x3.4x1.4x2.3x2.3x0.7x7.0x4.7x————————
Effective tax rate36.7%29.7%24.6%31.0%17.1%36.2%—16.6%87.9%20.6%21.0%24.6%24.2%24.7%24.7%23.4%24.7%
SG&A as % of revenue————————65.9%6.7%4.9%5.2%6.2%6.8%7.9%9.3%9.0%
Capital spending as % of revenue5.0%2.7%1.5%1.6%3.6%6.9%6.7%3.1%0.1%0.2%0.1%0.1%0.2%0.1%0.1%0.1%0.1%
Free cash flow ÷ net income228.1%211.7%528.5%−192.8%262.4%546.8%—104.0%−30.6%<−999%−278.0%−276.5%58.8%217.4%−79.0%−119.1%166.1%
Dividends and buybacks ÷ free cash flow—139.9%34.3%—0.0%27.1%0.0%5.8%—————————

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

2 of 4 checks passed · June 30, 2026
  • Short-term assets cover short-term liabilities The company doesn't report a short-term split. Not assessable.
  • Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
  • More cash than debt $395m of cash against $794m of debt.
  • Debt below 40% of shareholders' equity Debt is 43% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 67% to 43% over five years.
  • A year's operating cash flow covers at least 20% of debt $284m of operating cash flow against $794m of debt.
  • Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Forestar Group Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

30 /100

Weak moat

How hard Forestar Group's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 7 / 20

    Net income has been a median 5.2% of total assets over 10 years.

  • Pricing power 3 / 20

    Gross margin has been a median 20.7%, moving by 6.8 percentage points (standard deviation) across 10 years.

  • Durability 7 / 20

    Operating margin has been a median 21.9%; its worst year was -11.8%.

  • Cash conversion 4 / 20

    Free cash flow was positive in 4 of 10 years, at a median -10.7% of revenue.

  • Discipline 15 / 20

    The diluted share count rose 5.3% over five years; stock-based pay has been a median 0.4% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (36 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

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Figures from Forestar Group Inc.'s SEC filings (10-K and 10-Q), retrieved October 26, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Forestar Group Inc.