What does operating margin mean?

Operating income as a percentage of revenue (trailing twelve months). Captures profitability from core operations after both cost of revenue and operating expenses, but before interest and taxes.

Forestar Group FOR Operating margin

Discontinued — last reported Q4 '18

Operating margin at other companies

LTC PropertiesLTC

41.8%+1.0pp

CenterspaceCSR

28.5%+21.7pp

Essential Properties Realty TrustEPRT

62.6%+0.5pp

PrologisPLD

47.5%-1.0pp

CoStar GroupCSGP

-2.7%-3.9pp

GTY

Getty RealtyGTY

61%+7.6pp

Other financials

Income statement

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Revenue$374.3M+6.6%

Gross profit$80.2M+1.3%

Net income$32.1M+1.6%

EPS (diluted)$0.63+1.6%

Balance sheet

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Cash & equivalents$362.2M+108%

Total debt$810.4M-8.0%

Total equity$1.8B+10.6%

Total assets$3.2B+4.3%

Cash flow

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Operating cash flow-$157.0M+65.1%

CapEx$200.0K-71.4%

Free cash flow-$157.1M+65.1%

Valuation

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Market cap$1.58B+59.3%

Enterprise value$2.03B+19.3%

P/E9.4×+3.5×

P/S0.9×+0.2×

Profitability

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Gross margin21.3%-1.6pp

Net margin9.8%-1.7pp

FCF margin-3.4%-23.4pp

Returns & leverage

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Return on equity9.7%-1.1pp

Debt / equity0.4×-0.1×

Where this comes from

Calculated from Forestar Group’s reported figures.

operating income/total revenue=21.9%

Based on trailing twelve months.

The official record: Forestar Group’s 10-Q, filed July 29, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does operating margin mean?: Operating income as a percentage of revenue (trailing twelve months). Captures profitability from core operations after both cost of revenue and operating expenses, but before interest and taxes.