NasdaqGS:FSTR

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. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


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: FSTR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FSTR's weekly volatility has decreased from 11% to 5% over the past year.


Market Performance


7 Day Return

-3.6%

FSTR

-0.7%

US Machinery

-0.9%

US Market


1 Year Return

-25.0%

FSTR

21.7%

US Machinery

19.6%

US Market

Return vs Industry: FSTR underperformed the US Machinery industry which returned 24.1% over the past year.

Return vs Market: FSTR underperformed the US Market which returned 21% over the past year.


Shareholder returns

FSTRIndustryMarket
7 Day-3.6%-0.7%-0.9%
30 Day-0.6%5.9%3.0%
90 Day1.4%15.3%11.5%
1 Year-25.0%-25.0%24.7%21.7%22.3%19.6%
3 Year-40.1%-40.1%28.0%19.0%45.3%35.7%
5 Year45.8%44.5%177.7%147.5%124.8%99.9%

Long-Term 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

Valuation

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

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FSTR ($15.01) is trading below our estimate of fair value ($24.66)

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


Price To Earnings Ratio

PE vs Industry: FSTR is good value based on its PE Ratio (3.3x) compared to the US Machinery industry average (34.1x).

PE vs Market: FSTR is good value based on its PE Ratio (3.3x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FSTR is good value based on its PB Ratio (0.9x) compared to the US Machinery industry average (3.1x).


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?

-99.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSTR's earnings are forecast to decline over the next 3 years (-99.9% per year).

Earnings vs Market: FSTR's earnings are forecast to decline over the next 3 years (-99.9% per year).

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

Revenue vs Market: FSTR's revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: FSTR's revenue is forecast to decline over the next 3 years (-2.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FSTR'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?

55.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSTR has high quality earnings.

Growing Profit Margin: FSTR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FSTR has become profitable over the past 5 years, growing earnings by 55.6% per year.

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

Earnings vs Industry: FSTR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-15.5%).


Return on Equity

High ROE: FSTR's Return on Equity (27.9%) is considered high.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: FSTR's short term assets ($203.2M) exceed its short term liabilities ($99.2M).

Long Term Liabilities: FSTR's short term assets ($203.2M) exceed its long term liabilities ($106.3M).


Debt to Equity History and Analysis

Debt Level: FSTR's debt to equity ratio (28.9%) is considered satisfactory.

Reducing Debt: FSTR's debt to equity ratio has reduced from 73.2% to 28.9% over the past 5 years.

Debt Coverage: FSTR's debt is well covered by operating cash flow (58.4%).

Interest Coverage: FSTR's interest payments on its debt are well covered by EBIT (3.3x 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 FSTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FSTR'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 FSTR's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: FSTR is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Bob Bauer (62 yo)

8.92yrs

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 ($USD2.10M) is above average for companies of similar size in the US market ($USD1.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Bauer
CEO, President & Director8.92yrsUS$2.10m1.53%
$ 2.5m
John Kasel
Senior VP & COO1yrUS$888.78k0.57%
$ 925.3k
Patrick Guinee
Senior VP6.92yrsUS$695.90k0.35%
$ 558.9k
James Kempton
Controller & Principal Accounting Officer0.92yrno data0.015%
$ 24.0k
Brian Kelly
Senior VP of Human Resources & Administration8.42yrsUS$752.51k0.41%
$ 666.9k
Judith Balog
Manager of Investor Relationsno datano datano data
Jake Fuellhart
Marketing & Communications Managerno datano datano data

6.9yrs

Average Tenure

55yo

Average Age

Experienced Management: FSTR's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Bauer
CEO, President & Director8.92yrsUS$2.10m1.53%
$ 2.5m
Lee Foster
Independent Chairman of the Board23yrsUS$195.00k1.89%
$ 3.0m
William Rackoff
Independent Director25yrsUS$141.25k0.68%
$ 1.1m
Suzanne Rowland
Independent Director12.67yrsUS$141.00k0.27%
$ 436.3k
Raymond Betler
Director0.42yrno data0.061%
$ 98.3k
Diane Owen
Independent Director18.67yrsUS$145.00k0.49%
$ 791.5k
Dirk Jungé
Independent Director5.67yrsUS$135.00k0.098%
$ 157.8k
Robert Purgason
Independent Director6.08yrsUS$141.25k0.44%
$ 711.3k
Bradley Vizi
Independent Director4.92yrsUS$135.00k0.095%
$ 153.7k

8.9yrs

Average Tenure

64yo

Average Age

Experienced Board: FSTR's board of directors are considered experienced (8.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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: FSTR
  • Exchange: NasdaqGS
  • Founded: 1902
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$161.295m
  • Shares outstanding: 10.75m
  • 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 sh...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 23:54
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.