Forestar Group Inc FOR

Competitive advantage analysis · real-estate

Corporate Default
Overall moat score
73/100
Moderate

Ranked against 15 peers in Real Estate - Development

About Forestar Group Inc

Forestar Group Inc. operates as a residential lot development company in the United States. It acquires land and develops infrastructure for single-family residential communities. The company sells its residential single-family finished lots to local, regional, and national homebuilders. Forestar Group Inc. was incorporated in 2005 and is headquartered in Arlington, Texas. Forestar Group Inc. operates as a subsidiary of D.R. … Full FOR analysis →

Key strengths

  • ROIC Sustainably Above Peers ROIC at 81.8th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.83), demonstrating pricing resilience across cycles.

Key risks

  • Inconsistent Cash Generation Cash generation is inconsistent (score 0.33), indicating operational challenges.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
76
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where FOR ranks in Real Estate - Development

Forestar Group Inc ranks #2 of 16 scored companies in Real Estate - Development by moat score — the top 12%. The widest moat in the group is Corporacion Inmobiliaria Vesta, (VTMX) at 82/100.

# Company Moat score Rating
1 Corporacion Inmobiliaria Vesta, VTMX 82/100 Strong
2 Forestar Group Inc FOR 73/100 Moderate
3 AMREP Corporation AXR 61/100 Moderate
4 Logistic Properties of the Amer LPA 61/100 Moderate
5 Lead Real Estate Co., Ltd LRE 58/100 Moderate
6 Smith Douglas Homes Corp. SDHC 58/100 Moderate
7 Century Communities, Inc. CCS 52/100 Moderate
8 Five Point Holdings, LLC FPH 52/100 Moderate
9 Landsea Homes Corporation LSEAW 48/100 Developing

See every General Corporate company ranked by moat score →

How FOR scores on the Corporate Default defenses

Pricing Power

Score 76 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 87 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 65 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 89 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 53 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 65 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding FOR's moat

What is Forestar Group Inc's moat score?

Forestar Group Inc (FOR) scores 73 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #2 of 16 scored companies in Real Estate - Development, the top 12%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 15 companies in Real Estate - Development. Its strongest defense is Capital Efficiency (89/100) and its weakest is Resilience (53/100).

How does Forestar Group Inc compare with other Real Estate - Development companies?

Forestar Group Inc ranks #2 of 16 scored companies in Real Estate - Development by moat score. The widest moat in Real Estate - Development is Corporacion Inmobiliaria Vesta, (VTMX) at 82/100. The companies ranked closest are Corporacion Inmobiliaria Vesta, (VTMX) at 82 just above it and AMREP Corporation (AXR) at 61 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 15 companies in Real Estate - Development. The defenses are then weighted to produce the overall score out of 100.

Why is Forestar Group Inc scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Forestar Group Inc?

The Corporate Default template measures 6 defenses, and FOR scores: Pricing Power (76), Cost Advantage (87), Customer Stickiness (65), Capital Efficiency (89), Resilience (53), Scale & Market Position (65). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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