-+ 0.00%
-+ 0.00%
-+ 0.00%

How Investors Are Reacting To Forestar Group (FOR) Q1 Revenue Growth Amid Margin And Demand Pressures

Simply Wall St·01/29/2026 11:31:20
Listen to the news
  • Forestar Group Inc. reported past first-quarter 2025 results with sales rising to US$273 million from US$250.4 million, while net income eased to US$15.4 million and earnings per share slipped to US$0.30 from US$0.32 a year earlier.
  • Beneath the higher revenue, management pointed to pressure on gross margins from project mix, a low-margin tract sale, and softer demand tied to affordability constraints.
  • We’ll now examine how Forestar’s revenue growth alongside margin pressure and affordability-driven demand challenges shapes the company’s broader investment narrative.

Explore 23 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

What Is Forestar Group's Investment Narrative?

To be comfortable owning Forestar Group today, you need to believe in its ability to convert a relatively focused land development model into consistent, if unspectacular, earnings, while keeping balance sheet risk in check. The latest quarter fits awkwardly into that story: sales ticked higher to US$273 million, but net income and EPS slipped, underscoring how quickly margins can compress when project mix shifts or low-margin tract sales come through. That matters for the short term because near-term catalysts have been around execution on the 2026 lot and revenue guidance and the perception that the stock is “cheap” at a single-digit earnings multiple. If margin pressure and affordability-driven demand softness persist into upcoming quarters, those same factors could reframe what looked like a valuation opportunity as a more fundamental risk.

However, investors should be aware of how quickly affordability issues can pressure Forestar’s margins. Forestar Group's share price has been on the slide but might be dropping deeper into value territory. Find out whether it's a bargain at this price.

Exploring Other Perspectives

FOR 1-Year Stock Price Chart
FOR 1-Year Stock Price Chart
The Simply Wall St Community’s two fair value views span from about US$4.46 to US$32.50, underlining how far opinions can stretch. Set that against recent margin pressure and affordability headwinds and you can see why it pays to weigh several perspectives before deciding how Forestar’s performance might evolve.

Explore 2 other fair value estimates on Forestar Group - why the stock might be worth as much as 29% more than the current price!

Build Your Own Forestar Group Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Forestar Group research is our analysis highlighting 4 key rewards that could impact your investment decision.
  • Our free Forestar Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Forestar Group's overall financial health at a glance.

No Opportunity In Forestar Group?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.