L. B. Foster Company (FSTR) AI Stock Analysis

• Market Cap: $254.06M
• Dividend Yield: N/A
• Average Volume (3M): 31.76K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.11
• Revenue Growth: -8.75%
• EPS Growth: 354.10%
• Country: US
• Employees: 1,057
• Sector: Industrials
• Sector Strength: 94
• Industry: Railroads
• EPS (TTM): -0.20
• Shares Outstanding: 10,559,308
• 10 Day Avg. Volume: 26,511
• 30 Day Avg. Volume: 31,760
• PEG Ratio: -0.45
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.36
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 2.81
• 1Y Price Target: $33.00
• Price Target Upside: 38.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $24.50 ▲(2.98%Upside)

L.B. Foster's overall stock score reflects its strong valuation and improved financial flexibility following the credit agreement expansion. While profitability and technical indicators are favorable, challenges in revenue growth and cash flow, along with potential overbought conditions, temper the score. Optimism from the earnings call and strategic initiatives provide additional support to the stock's outlook.

L. B. Foster Company Business Overview & Revenue Model

Company Description

L.B. Foster Company provides engineered and manufactured products and services for the building and infrastructure projects worldwide. The company's 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. This segment also provides friction management products and application systems, railroad condition monitoring systems and equipment, wheel impact load detection systems, wayside data collection and management systems, track fasteners, and engineered concrete railroad ties; and aftermarket services. Its Precast Concrete Products segment offers a range of specialty precast concrete products, such as sound walls, burial vaults, bridge beams, box culverts, septic tanks, and other custom pre-stressed products for use in transportation and general infrastructure markets. This segment also manufactures precast concrete buildings for use as restrooms, concession stands, and protective storage buildings in national, state, and municipal parks. The company's Steel Products and Measurement segment provides bridge decking, bridge railing, structural steel fabrications, expansion joints, bridge forms, and other products for highway construction and repair. This segment also produces threaded pipe products for industrial water well, irrigation, and oil and gas markets, as well as offers pipe coatings for oil and gas pipelines and utilities, and precision measurement systems for the oil and gas market. 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.

How the Company Makes Money

L. B. Foster Company generates revenue through its diversified product and service offerings across its three primary segments. The Rail Technologies and Services segment earns income by selling and servicing rail infrastructure components, including track accessories and signaling systems. The Construction Products segment contributes to revenue by providing engineered concrete and steel solutions for infrastructure projects such as bridges and tunnels. The Tubular and Energy Services segment makes money through the sale of coated and lined pipe products and other related services that cater to the oil and gas industry. The company's revenue is further bolstered by strategic partnerships and long-term contracts with key industry players, as well as its ability to adapt its offerings to meet evolving market demands and regulatory requirements.

L. B. Foster Company Financial Statement Overview

Summary

L. B. Foster Company demonstrates strong profitability margins and has improved its return on equity significantly. However, the company faces challenges in revenue growth and cash flow generation, which may impact future financial flexibility. The balance sheet remains stable with reasonable leverage, but attention to cash flow management is needed to support growth and operational needs.

Income Statement

The company exhibited a positive trend in profitability with a TTM gross profit margin of 22.22% and net profit margin of 7.22%, reflecting efficient cost management. However, the revenue growth rate was negative at -5.00% from 2024 to 2025, indicating a decline in sales. The EBIT margin in TTM was 2.57%, showing moderate operational efficiency, while EBITDA margin was 5.33%, suggesting healthy core earnings before depreciation and amortization.

Balance Sheet

The balance sheet reflects a stable financial position, with a debt-to-equity ratio of 0.60 in TTM, indicating moderate leverage. The return on equity (ROE) improved significantly to 21.31% in TTM, highlighting effective use of shareholders' funds. The equity ratio stood at 49.83% in TTM, showing a balanced capital structure, though slightly lower compared to previous periods.

Cash Flow

Operating cash flow to net income ratio in TTM was 0.49, indicating moderate cash conversion efficiency. The free cash flow to net income ratio was 0.23, reflecting limited free cash flow generation relative to net income. Free cash flow growth rate was -35.49% from 2024 to TTM, showing decreased cash availability for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	504.24M	530.76M	543.74M	497.50M	513.62M	497.41M
Gross Profit	112.04M	118.06M	112.81M	89.61M	86.30M	95.01M
EBITDA	26.90M	34.82M	22.94M	9.21M	20.48M	31.03M
Net Income	36.40M	42.95M	1.46M	-45.56M	3.63M	7.58M
Balance Sheet
Total Assets	342.83M	334.55M	312.40M	365.31M	342.60M	370.39M
Cash, Cash Equivalents and Short-Term Investments	2.61M	2.45M	2.56M	2.88M	10.37M	7.56M
Total Debt	102.61M	61.65M	67.14M	106.04M	43.53M	58.54M
Total Liabilities	171.23M	155.54M	169.57M	227.71M	158.99M	193.56M
Stockholders Equity	170.79M	178.32M	142.11M	137.18M	183.09M	176.83M
Cash Flow
Free Cash Flow	8.29M	12.84M	32.44M	-18.21M	-5.68M	7.74M
Operating Cash Flow	17.94M	22.63M	37.38M	-10.58M	-1.06M	16.92M
Investing Cash Flow	-10.10M	-6.31M	2.49M	-56.42M	17.82M	-8.04M
Financing Cash Flow	-8.71M	-16.23M	-39.30M	60.24M	-13.90M	-15.30M

L. B. Foster Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSTR, the sentiment is Positive. The current price of 23.79 is above the 20-day moving average (MA) of 23.19, above the 50-day MA of 20.87, and above the 200-day MA of 22.94, indicating a bullish trend. The MACD of 0.66 indicates Positive momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 23.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSTR.

L. B. Foster Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	81 Outperform	$36.26B	33.21	10.84%	0.42%	5.21%	24.15%
FSTR	75 Outperform	$254.06M	7.29	23.08%	―	-8.75%	354.10%
TRN	73 Outperform	$2.19B	16.49	14.14%	4.40%	-9.40%	8.41%
EVI	72 Outperform	$303.40M	48.38	4.71%	―	3.51%	33.35%
GBX	70 Outperform	$1.51B	6.89	16.16%	2.62%	0.71%	84.57%
Sector *	59 Neutral	AU$1.67B	10.33	11.24%	3.44%	6.75%	3.18%
RAIL	58 Neutral	$220.63M	―	156.43%	―	12.58%	34.10%

L. B. Foster Company Corporate Events

L.B. Foster Expands Credit Agreement to $150 Million

On June 27, 2025, L.B. Foster Company entered into a Fifth Amended and Restated Credit Agreement with several banks, expanding its borrowing capacity from $130 million to $150 million and extending the maturity date to June 27, 2030. This agreement, which includes improved pricing and more flexible covenants, is designed to support the company’s strategic growth in its core platforms of Rail Technologies and Precast Concrete, enhancing its ability to invest in growth programs and corporate finance initiatives.

The most recent analyst rating on (FSTR) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on L. B. Foster Company stock, see the FSTR Stock Forecast page.

L.B. Foster Approves 2025 Equity Compensation Plan

On May 22, 2025, L.B. Foster Company held its Annual Meeting of Shareholders where the 2025 Equity and Incentive Compensation Plan was approved, authorizing the issuance of 785,000 shares of common stock. Additionally, all nominated directors were elected, Ernst & Young LLP’s appointment as the independent auditor was ratified, and executive compensation for 2024 was approved.

The most recent analyst rating on (FSTR) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on L. B. Foster Company stock, see the FSTR Stock Forecast page.