Operating Margin

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Price: 26.02 USD -5.04% Market Closed

Market Cap: 1.3B USD

13%

Declining

by 2.2%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

13%

Operating Income

$216.3m

Revenue

$1.7B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

13%

Operating Income

$216.3m

Revenue

$1.7B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Forestar Group Inc NYSE:FOR	1.3B USD	Loading...
HK		China Resources Land Ltd HKEX:1109	205.8B HKD	Loading...
HK		CK Asset Holdings Ltd HKEX:1113	150.9B HKD	Loading...
VN	V	Vinhomes JSC VN:VHM	505.2T VND	Loading...
HK		Henderson Land Development Co Ltd HKEX:12	148.6B HKD	Loading...
HK		China Overseas Land & Investment Ltd HKEX:688	146.6B HKD	Loading...
HK		Sino Land Co Ltd HKEX:83	103.3B HKD	Loading...
CN		China Merchants Shekou Industrial Zone Holdings Co Ltd SZSE:001979	89.5B CNY	Loading...
CN		Poly Developments and Holdings Group Co Ltd SSE:600048	78.2B CNY	Loading...
IN		Macrotech Developers Ltd NSE:LODHA	964.1B INR	Loading...
CN		China Vanke Co Ltd SZSE:000002	59.3B CNY	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Forestar Group Inc
Glance View

Market Cap

1.3B USD

Industry

Real Estate

Forestar Group Inc., originally a part of the more diversified conglomerate Temple-Inland, has carved out a niche in the real estate sector as a nimble player focused on residential lot development. Positioned as a key supplier for homebuilders, the company’s core business lies in its strategic ability to transform raw land into ready-to-build residential lots. This process involves acquiring and entitling land, primarily in high-growth corridors across the United States, where urban sprawl and demand for new housing continue to rise. Forestar employs a disciplined investment approach focused on the fundamentals of land supply and demand, enabling it to deftly navigate the cyclical nature of the real estate market. Forestar's revenue model is intricately tied to its partnerships with national and regional homebuilders, providing these clients with a steady and scalable pipeline of lot inventory, thereby allowing them to focus on the vertical construction of homes. By selling entitled and developed lots, the company monetizes its inventory through both single-payment land sales and longer-term lot option contracts. This dual approach allows Forestar to maintain liquidity while capitalizing on future land value appreciation. Their strategic alignment with homebuilding giant D.R. Horton, which owns a controlling interest, further bolsters Forestar’s market position, providing a symbiotic relationship that enhances operational efficiency and accelerates market penetration. Through this efficient sales model, Forestar is well-positioned to capture value in a perpetually evolving housing market landscape.

View FOR Analysis

FOR Intrinsic Value

Undervaluation 35%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Forestar Group Inc
NYSE:FOR

Peer Comparison

Market Distribution

Other Profitability Ratios

Forestar Group Inc
Glance View

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Forestar Group Inc NYSE:FOR