DB:LB1A

Stock Analysis Report

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Executive Summary

L.B. Foster Company manufactures and distributes products and services for the transportation and energy infrastructure worldwide.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has L.B. Foster's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LB1A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.9%

LB1A

1.5%

DE Machinery

2.8%

DE Market


1 Year Return

-52.8%

LB1A

-14.5%

DE Machinery

0.3%

DE Market

Return vs Industry: LB1A underperformed the German Machinery industry which returned -14.5% over the past year.

Return vs Market: LB1A underperformed the German Market which returned 0.3% over the past year.


Shareholder returns

LB1AIndustryMarket
7 Day6.9%1.5%2.8%
30 Day-12.1%-3.0%0.5%
90 Day-2.7%24.7%27.7%
1 Year-52.8%-52.8%-13.6%-14.5%2.3%0.3%
3 Year-39.4%-39.4%-31.3%-35.4%3.5%-4.9%
5 Yearn/a-10.0%-19.2%11.4%-3.4%

Price Volatility Vs. Market

How volatile is L.B. Foster's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is L.B. Foster undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LB1A (€10.9) is trading below our estimate of fair value (€36.27)

Significantly Below Fair Value: LB1A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LB1A is good value based on its PE Ratio (3.5x) compared to the Machinery industry average (15.4x).

PE vs Market: LB1A is good value based on its PE Ratio (3.5x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: LB1A's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LB1A is good value based on its PB Ratio (0.8x) compared to the DE Machinery industry average (1.3x).


Next Steps

Future Growth

How is L.B. Foster forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-89.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LB1A's earnings are forecast to decline over the next 3 years (-89.8% per year).

Earnings vs Market: LB1A's earnings are forecast to decline over the next 3 years (-89.8% per year).

High Growth Earnings: LB1A's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LB1A's revenue is expected to decline over the next 3 years (-3.1% per year).

High Growth Revenue: LB1A's revenue is forecast to decline over the next 3 years (-3.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LB1A's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has L.B. Foster performed over the past 5 years?

27.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LB1A has a large one-off loss of $3.5M impacting its March 31 2005 financial results.

Growing Profit Margin: LB1A became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LB1A has become profitable over the past 5 years, growing earnings by 27.3% per year.

Accelerating Growth: LB1A has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LB1A has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-22.8%).


Return on Equity

High ROE: LB1A's Return on Equity (22.8%) is considered high.


Next Steps

Financial Health

How is L.B. Foster's financial position?


Financial Position Analysis

Short Term Liabilities: LB1A's short term assets ($207.2M) exceed its short term liabilities ($107.5M).

Long Term Liabilities: LB1A's short term assets ($207.2M) exceed its long term liabilities ($129.1M).


Debt to Equity History and Analysis

Debt Level: LB1A's debt to equity ratio (40.3%) is considered high.

Reducing Debt: LB1A's debt to equity ratio has reduced from 64.8% to 40.3% over the past 5 years.

Debt Coverage: LB1A's debt is well covered by operating cash flow (54.9%).

Interest Coverage: LB1A's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

What is L.B. Foster current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LB1A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LB1A's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LB1A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LB1A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LB1A is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LB1A's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Bob Bauer (62yo)

8.42yrs

Tenure

US$2,095,889

Compensation

Mr. Robert P. Bauer, also known as Bob, has been the Chief Executive Officer and President of LB Foster Co. since February 1, 2012. Mr. Bauer has been with L. B. Foster since 2012 and prior to that was wit ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD2.10M) is above average for companies of similar size in the German market ($USD473.31K).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Bauer
CEO, President & Director8.42yrsUS$2.10m1.54% $1.8m
James Maloney
Senior VP & CFO2.83yrsUS$798.11k0.21% $241.7k
John Kasel
Senior VP & COO0.50yrUS$888.78k0.58% $678.3k
Patrick Guinee
Senior VP6.42yrsUS$695.90k0.35% $409.7k
James Kempton
Controller & Principal Accounting Officer0.42yrno data0.015% $17.6k
Brian Kelly
Senior VP of Human Resources & Administration7.92yrsUS$752.51k0.41% $488.8k
Judith Balog
Manager of Investor Relationsno datano datano data

4.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: LB1A's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Bauer
CEO, President & Director8.42yrsUS$2.10m1.54% $1.8m
Lee Foster
Independent Chairman of the Board22.5yrsUS$195.00k1.89% $2.2m
William Rackoff
Independent Director24.5yrsUS$141.25k0.69% $807.3k
Suzanne Rowland
Independent Director12.17yrsUS$141.00k0.27% $314.1k
Diane Owen
Independent Director18.17yrsUS$145.00k0.49% $580.2k
Dirk Jungé
Independent Director5.17yrsUS$135.00k0.098% $115.7k
Robert Purgason
Independent Director5.58yrsUS$141.25k0.44% $521.4k
Bradley Vizi
Independent Director4.42yrsUS$135.00k0.086% $101.2k

10.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: LB1A's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LB1A insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

L.B. Foster Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: L.B. Foster Company
  • Ticker: LB1A
  • Exchange: DB
  • Founded: 1902
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$132.438m
  • Listing Market Cap: US$117.804m
  • Shares outstanding: 10.71m
  • Website: https://www.lbfoster.com

Number of Employees


Location

  • L.B. Foster Company
  • 415 Holiday Drive
  • Pittsburgh
  • Pennsylvania
  • 15220
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSTRNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJun 1981
LB1ADB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 1981

Biography

L.B. Foster Company manufactures and distributes products and services for the transportation and energy infrastructure worldwide. Its Rail Products and Services segment offers new rail to passenger and short line freight railroads, industrial companies, and rail contractors; used rails; rail accessories, including track spikes, bolts, angle bars, and other products; power rail, direct fixation fasteners, coverboards, and other accessories; and trackwork products, as well as engineers and fabricates insulated rail joints and related accessories. This segment also provides friction management products and application systems, railroad condition monitoring systems and equipment, wheel impact load detection, fire protection systems, rail anchors and spikes, wayside data collection and management systems, epoxy and nylon-encapsulated insulated rail joints, and track fasteners; and aftermarket services and engineered concrete railroad ties. The company’s Construction Products segment sells and rents steel sheet piling, H-bearing pile, and other piling products; and bridge decking, bridge railing, structural steel fabrications, expansion joints, bridge forms, and other products for highway construction and repair. It also produces precast concrete buildings and various specialty precast concrete products; and fabricated steel and aluminum products. Its Tubular and Energy Services segment provides pipe coatings for natural gas pipelines and utilities; solutions for metering and injection systems for the oil and gas market; upstream test and inspection services; and precision measurement systems, and inspection and tubular integrity management services for the oil and gas market, as well as threaded pipe products for the oil and gas, industrial water well, and irrigation markets. The company markets its products directly, as well as through a network of agents. L.B. Foster Company was founded in 1902 and is headquartered in Pittsburgh, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 22:11
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.