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FSTR

L.B. FosterNasdaqGS:FSTR Stock Report

Market Cap

US$183.3m

7D

9.1%

1Y

12.7%

Updated

19 Oct, 2021

Data

Company Financials +
FSTR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends0/6

FSTR Overview

L.B. Foster Company provides products and services for the rail industry and solutions to support critical infrastructure projects worldwide.

L.B. Foster Competitors

Gibraltar Industries

NasdaqGS:ROCK

US$2.4b

Insteel Industries

NYSE:IIIN

US$735.6m

Sterling Construction Company

NasdaqGS:STRL

US$655.3m

Ampco-Pittsburgh

NYSE:AP

US$89.0m

Price History & Performance

Summary of all time highs, changes and price drops for L.B. Foster
Historical stock prices
Current Share PriceUS$16.92
52 Week HighUS$13.16
52 Week LowUS$19.47
Beta1.08
1 Month Change9.70%
3 Month Change-5.45%
1 Year Change12.69%
3 Year Change-2.96%
5 Year Change35.32%
Change since IPO298.00%

Recent News & Updates

Sep 10
L.B. Foster (NASDAQ:FSTR) Takes On Some Risk With Its Use Of Debt

L.B. Foster (NASDAQ:FSTR) Takes On Some Risk With Its Use Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

FSTRUS MachineryUS Market
7D9.1%4.4%4.0%
1Y12.7%26.6%30.5%

Return vs Industry: FSTR underperformed the US Machinery industry which returned 25.9% over the past year.

Return vs Market: FSTR underperformed the US Market which returned 30% over the past year.

Price Volatility

Is FSTR's price volatile compared to industry and market?
FSTR volatility
FSTR Beta1.08
Industry Beta1.26
Market Beta1

Stable Share Price: FSTR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FSTR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19021,130John Kaselhttps://www.lbfoster.com

L.B. Foster Company provides products and services for the rail industry and solutions to support critical infrastructure projects worldwide. The company operates in two segments, Rail Technologies and Services; and Infrastructure Solutions. The Rail Technologies 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 and anchors, bolts, angle bars, tie plates, and other products; power rail, direct fixation fasteners, coverboards, and special accessories; and trackwork products, as well as engineers and manufactures insulated rail joints and related accessories.

L.B. Foster Fundamentals Summary

How do L.B. Foster's earnings and revenue compare to its market cap?
FSTR fundamental statistics
Market CapUS$183.27m
Earnings (TTM)US$20.48m
Revenue (TTM)US$504.54m

9.0x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FSTR income statement (TTM)
RevenueUS$504.54m
Cost of RevenueUS$415.81m
Gross ProfitUS$88.74m
ExpensesUS$68.26m
EarningsUS$20.48m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.89
Gross Margin17.59%
Net Profit Margin4.06%
Debt/Equity Ratio20.8%

How did FSTR perform over the long term?

See historical performance and comparison

Valuation

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

8.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FSTR ($16.92) is trading above our estimate of fair value ($1.27)

Significantly Below Fair Value: FSTR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FSTR is good value based on its PE Ratio (9x) compared to the US Machinery industry average (29.1x).

PE vs Market: FSTR is good value based on its PE Ratio (9x) compared to the US market (18.1x).


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 (1x) compared to the US Machinery industry average (2.8x).


Future Growth

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

-33.5%

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 (-33.5% per year).

Earnings vs Market: FSTR's earnings are forecast to decline over the next 3 years (-33.5% per year).

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

Revenue vs Market: FSTR's revenue (4.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: FSTR's revenue (4.1% per year) is forecast to grow slower than 20% 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


Past Performance

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

69.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSTR has high quality earnings.

Growing Profit Margin: FSTR's current net profit margins (4.1%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: FSTR has become profitable over the past 5 years, growing earnings by 69.8% per year.

Accelerating Growth: FSTR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FSTR had negative earnings growth (-50%) over the past year, making it difficult to compare to the Machinery industry average (21.7%).


Return on Equity

High ROE: FSTR's Return on Equity (11.3%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: FSTR's short term assets ($210.5M) exceed its short term liabilities ($112.0M).

Long Term Liabilities: FSTR's short term assets ($210.5M) exceed its long term liabilities ($87.1M).


Debt to Equity History and Analysis

Debt Level: FSTR's debt to equity ratio (20.8%) is considered satisfactory.

Reducing Debt: FSTR's debt to equity ratio has reduced from 92.7% to 20.8% over the past 5 years.

Debt Coverage: FSTR's debt is well covered by operating cash flow (46.1%).

Interest Coverage: FSTR's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


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?

0.6yrs

Average management tenure


CEO

John Kasel (56 yo)

0.25

Tenure

US$1,091,364

Compensation

Mr. John F. Kasel has been President, Chief Executive Officer and Director of L.B. Foster Company since July 21, 2021. He served as Senior Vice President and Chief Operating Officer L.B.Foster Company sin...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.09M) is about average for companies of similar size in the US market ($USD1.07M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: FSTR's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: FSTR's board of directors are considered experienced (6.8 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 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$183.265m
  • Shares outstanding: 10.83m
  • Website: https://www.lbfoster.com

Number of Employees


Location

  • L.B. Foster Company
  • 415 Holiday Drive
  • Suite 100
  • Pittsburgh
  • Pennsylvania
  • 15220
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 23:34
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.