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L. B. Foster Company (FSTR)
NASDAQ:FSTR
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L. B. Foster Company
(NASDAQ:FSTR)
70Neutral
L. B. Foster Company (FSTR) vs. S&P 500 (SPY)
Market Cap
$191.02M
Dividend YieldN/A
Average Volume (3M)46.29K
Price to Earnings (P/E)5.5
Beta (1Y)0.99
Revenue Growth-8.75%
EPS Growth354.10%
CountryUS
Employees1,057
SectorIndustrials
Sector Strength83
IndustryRailroads
Share Statistics
EPS (TTM)-0.20
Shares Outstanding10,559,308
10 Day Avg. Volume33,822
30 Day Avg. Volume46,291
Financial Highlights & Ratios
PEG Ratio-0.34
Price to Book (P/B)1.12
Price to Sales (P/S)0.00
P/FCF Ratio9.24
Enterprise Value/Market Cap1.52
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit2.51
Enterprise Value/Ebitda2.65
Forecast
1Y Price Target
$33.00Price Target Upside82.42% Upside
Rating ConsensusHold
Number of Analyst Covering1
L. B. Foster Company Business Overview & Revenue Model
Company DescriptionL.B. Foster Company (FSTR) is a leading provider of products and services for the rail and infrastructure markets. The company operates through various segments, including Rail Technologies and Services, Construction Products, and Tubular and Energy Services. L.B. Foster offers a wide range of solutions such as rail fastening systems, friction management products, transit products, and precast concrete products, catering primarily to the needs of the transportation, construction, and energy sectors.
How the Company Makes MoneyL.B. Foster Company generates revenue through the sale of its diverse product portfolio and related services across its business segments. The Rail Technologies and Services segment provides products and services to railroads and transit agencies, focusing on rail fastening systems, friction management solutions, and track components, which are crucial for rail infrastructure maintenance and development. The Construction Products segment supplies precast concrete products, bridge decking, and steel products used in infrastructure projects. Meanwhile, the Tubular and Energy Services segment offers coated pipe and pipeline accessories primarily to the oil and gas industry. The company's revenue is driven by both direct sales to end customers and through long-term contracts, benefiting from ongoing infrastructure projects and maintenance needs. Strategic partnerships and the company's ability to leverage its industry expertise also play a significant role in contributing to its earnings.
L. B. Foster Company Financial Statement Overview
Summary
L. B. Foster Company has demonstrated a commendable recovery in profitability and improved its balance sheet strength with lower leverage and higher equity. However, its revenue decline and reduced cash flow efficiency highlight potential challenges. The company appears to be on a positive trajectory, but sustaining growth and enhancing cash flow generation are critical for future stability.Income Statement
The company has shown a significant improvement in its net profit margin, which increased from 0.27% in 2023 to 8.09% in 2024. The gross profit margin also improved, alongside a notable increase in EBIT margin from 1.87% to 3.87%. However, there is a slight decline in revenue year-over-year by 2.39%, which poses a risk to sustained growth.75
Positive
Balance Sheet
The balance sheet indicates a strong equity position with an increase in stockholders' equity from 142 million in 2023 to 178 million in 2024. The debt-to-equity ratio improved significantly, dropping from 0.47 in 2023 to 0.08 in 2024, showcasing reduced leverage. The equity ratio improved from 45.49% in 2023 to 53.32% in 2024, indicating a stronger capital structure. However, the overall asset base has not grown significantly, which could limit future expansion.70
Positive
Cash Flow
The operating cash flow to net income ratio decreased, reflecting lower efficiency in converting net income to cash flow. Free cash flow remained stable, but declined compared to the previous year. The company has managed to maintain positive free cash flow despite fluctuations in operating cash flow, but the reduction in cash flow generation could signal potential liquidity challenges if not addressed.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 530.76M | 543.74M | 497.50M | 513.62M | 497.41M |
| Gross Profit | ||||
| 118.06M | 112.81M | 89.61M | 86.30M | 95.01M |
| EBIT | ||||
| 20.51M | 10.14M | 2.36M | 7.55M | 17.74M |
| EBITDA | ||||
| 34.82M | 22.94M | 9.21M | 18.36M | 29.21M |
| Net Income Common Stockholders | ||||
| 42.95M | 1.46M | -45.68M | 3.63M | 25.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.45M | 2.56M | 2.88M | 10.37M | 7.56M |
| Total Assets | ||||
| 334.55M | 312.40M | 365.31M | 342.60M | 370.39M |
| Total Debt | ||||
| 61.65M | 67.14M | 106.04M | 43.53M | 58.54M |
| Net Debt | ||||
| 59.20M | 64.58M | 103.16M | 33.16M | 50.98M |
| Total Liabilities | ||||
| 155.54M | 169.57M | 227.71M | 158.99M | 193.56M |
| Stockholders Equity | ||||
| 178.32M | 142.11M | 137.18M | 183.09M | 176.83M |
| Cash Flow | Free Cash Flow | |||
| 12.84M | 32.44M | -18.21M | -5.68M | 7.74M |
| Operating Cash Flow | ||||
| 22.63M | 37.38M | -10.58M | -1.06M | 16.92M |
| Investing Cash Flow | ||||
| -6.31M | 2.07M | -56.42M | 17.82M | -8.04M |
| Financing Cash Flow | ||||
| -16.23M | -39.30M | 60.24M | -13.90M | -15.30M |
L. B. Foster Company Technical Analysis
Negative
18.09
Price Trends
20.09
Negative
23.72
Negative
22.65
Negative
Market Momentum
-0.48
Positive
41.70
Neutral
32.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSTR, the sentiment is Negative. The current price of 18.09 is below the 20-day moving average (MA) of 19.59, below the 50-day MA of 20.09, and below the 200-day MA of 22.65, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 32.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSTR.
L. B. Foster Company Risk Analysis
L. B. Foster Company disclosed 27 risk factors in its most recent earnings report. L. B. Foster Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
L. B. Foster Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $32.96B | 30.19 | 10.62% | 0.44% | 5.21% | 24.15% | |
71 Outperform | $2.04B | 15.39 | 14.14% | 4.64% | -9.40% | 8.41% | |
70 Neutral | $191.02M | 5.48 | 23.08% | ― | -8.75% | 354.10% | |
67 Neutral | $1.39B | 7.02 | 14.69% | 2.75% | -5.79% | 82.71% | |
64 Neutral | $198.86M | 32.01 | 4.73% | ― | -1.93% | -0.69% | |
64 Neutral | $4.30B | 11.88 | 5.23% | 249.82% | 4.12% | -10.27% | |
52 Neutral | $119.76M | ― | 156.43% | ― | 12.58% | 34.10% |
* Industrials Sector Average
Performance Comparison
FSTR
L. B. Foster Company
18.78
-10.02
-34.79%
EVI
EVI Industries
15.96
-4.06
-20.28%
RAIL
Freightcar America
6.95
3.47
99.71%
GBX
Greenbrier
47.19
-4.81
-9.25%
TRN
Trinity Industries
26.49
-3.37
-11.29%
WAB
Westinghouse Air Brake Technologies
200.99
36.87
22.47%
L. B. Foster Company Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -11.67%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant growth in infrastructure sales, backlog, and orders, while also highlighting challenges in the Rail segment and increased net debt. The sentiment reflects optimism for future quarters based on improved backlog and order rates, but also acknowledges the current financial pressures from the Rail segment's performance.Q1-2025 Updates
Positive Updates
Infrastructure Sales Growth
Infrastructure sales grew 5% over last year, driven by a 33.7% increase in Precast Concrete sales.
Rail Backlog Increase
Rail backlog increased by 46.9% during the quarter, indicating improved project funding and bidding levels.
Order and Backlog Growth
Order rates increased 39.1% sequentially and 12.6% over last year, translating into a backlog increase of $51.3 million during the quarter.
Share Buyback Program
A new three-year, $40 million stock buyback program was authorized, with approximately 1.5% of shares repurchased in the first quarter.
Improved Infrastructure Orders
Infrastructure orders were up 35.3% over the prior year quarter, with a $12 million backlog increase in Protective Coatings.
Negative Updates
Rail Segment Sales Decline
Rail segment sales were down 34.6% due to weak Rail distribution demand, leading to a 69.3% decrease in adjusted EBITDA.
Net Debt Increase
Net debt increased to $79.9 million during the quarter, with the gross leverage ratio rising to 2.5 times compared to 2.2 times last year.
Decline in Gross Profit Margin
Gross profit margin declined by 50 basis points to 20.6% due to lower Rail sales and unfavorable mix within the Rail segment.
Negative Operating Cash Flow
Operating cash flow was a use of $26.1 million, reflecting normal seasonal patterns and increased working capital needs.
Company Guidance
During L.B. Foster's first quarter 2025 earnings call, the company provided guidance indicating that despite a challenging start to the year—with first quarter sales down 21.3% driven by a 34.6% decline in the Rail segment—they remain optimistic about the rest of 2025. The decline in the Rail segment was offset by a 5% increase in Infrastructure sales, primarily due to a 33.7% rise in Precast Concrete sales. The company reported a 46.9% increase in rail backlog during the quarter. Order rates improved by 39.1% sequentially and 12.6% over last year, resulting in a backlog at quarter-end of $237.2 million, up $51.3 million during the quarter and $15 million year-over-year. Despite the first quarter's softness, L.B. Foster is maintaining its full-year guidance, citing strong backlog growth and favorable demand drivers. The company's net debt increased to $79.9 million, with a gross leverage ratio of 2.5 times. They expect improved sales volumes and profitability in the second quarter, aligning with typical seasonal patterns.L. B. Foster Company Corporate Events
Executive/Board Changes
L.B. Foster Announces Leadership Transitions for 2025
Neutral
Dec 6, 2024
L.B. Foster Company is undergoing significant leadership transitions as Brian H. Kelly plans his retirement effective December 31, 2025, and will serve as Senior Advisor to the CEO starting January 1, 2025. Concurrently, the Board has promoted Jamie F. O’Neill and Sara Fay Rolli to Senior Vice President roles to assume Kelly’s responsibilities, ensuring continuity and fresh perspectives in the company’s Human Resources and Operational Administration sectors.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.