Is FOR a high-quality business?

AlphaMadera's AlphaQuality grade scores Forestar Group Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how FOR compares to a Buffett-style quality bar.

What is Forestar Group Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to FOR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes FOR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

FOR - Forestar Group Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $28.38 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C 51.5 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C- 46.9

5yr Avg ROIC 6.3% 41/100
Operating Margin Trend +0.17 pp/yr 60/100

Capital Efficiency

Weight: 15%

C 52.9

5yr Avg ROE 9.4% 57/100
5yr Share-Count CAGR 1.0% 46/100

Growth Quality

Weight: 15%

B 71.4

5yr Revenue CAGR 5.8% 64/100
5yr EPS CAGR 10.0% 76/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

F 6.3

5yr FCF Margin -2.7% 12/100
5yr FCF/NI Conversion -0.40x 0/100

Balance Sheet

Weight: 20%

B 70.5

Net Debt / EBITDA 1.97x 71/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 1.80 35/100

Stability

Weight: 15%

C 55.8

EPS Volatility (σ/μ) 0.53 28/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 1/5 80/100

2 of 2 gurus held; 2 trimmed.

Holders: 2
Avg Δ position: -57.2%
New buys: 0
Full exits: 0

Cooperman decreased -78%
Wood decreased -37%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.