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

• Market Cap: $291.86M
• Dividend Yield: N/A
• Average Volume (3M): 33.87K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.37
• Revenue Growth: -7.03%
• EPS Growth: 397.79%
• Country: US
• Employees: 1,057
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.27
• Shares Outstanding: 10,597,683
• 10 Day Avg. Volume: 32,468
• 30 Day Avg. Volume: 33,872
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: 11.43
• 1Y Price Target: $30.50
• Price Target Upside: 10.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $28.00 ▲(1.67% Upside)

L. B. Foster Company demonstrates strong financial recovery and positive technical indicators, supported by strategic corporate actions. The stock's undervaluation and optimistic earnings outlook further enhance its attractiveness, despite some challenges in specific segments.

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 multiple streams, primarily by selling its engineered products to the rail and construction industries. Key revenue sources include the sale of rail products such as rail ties, trackwork, and signaling systems, as well as precast concrete solutions for various construction applications. Additionally, the company earns income from service contracts related to project management and technical support. Strategic partnerships with major construction and rail industry players further bolster its revenue, allowing for larger project completions and consistent demand for its specialized products. Overall, L. B. Foster's diversified product offerings and strong industry relationships are critical to its financial success.

L. B. Foster Company Financial Statement Overview

Summary

L. B. Foster Company shows a strong financial recovery with significant revenue growth and improved cash flow generation. The reduction in leverage and improved profitability metrics indicate a positive trajectory, though operational efficiency and past leverage levels need monitoring.

Income Statement

The income statement shows a strong recovery with a significant revenue growth rate of 54.8% in the TTM period. Gross profit margin and net profit margin have improved, indicating better cost management and profitability. However, EBIT and EBITDA margins are relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a healthy debt-to-equity ratio of 0.11 in the TTM period, showing a significant reduction in leverage. Return on equity is strong at 20.66%, indicating effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. However, past periods showed higher leverage, which could pose risks if not managed well.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth of 241.19% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio is also strong, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	507.00M	530.76M	543.74M	497.50M	513.62M	497.41M
Gross Profit	112.67M	118.06M	112.81M	89.61M	86.30M	95.01M
EBITDA	29.35M	34.82M	22.94M	9.21M	20.48M	31.03M
Net Income	36.44M	42.95M	1.46M	-45.56M	3.63M	7.58M
Balance Sheet
Total Assets	349.93M	334.55M	312.40M	365.31M	342.60M	370.39M
Cash, Cash Equivalents and Short-Term Investments	4.19M	2.45M	2.56M	2.88M	10.37M	7.56M
Total Debt	101.41M	61.65M	67.14M	106.04M	43.53M	58.54M
Total Liabilities	174.68M	155.54M	169.57M	227.71M	158.99M	193.56M
Stockholders Equity	174.44M	178.32M	142.11M	137.18M	183.09M	176.83M
Cash Flow
Free Cash Flow	23.02M	12.84M	32.44M	-18.21M	-5.68M	7.74M
Operating Cash Flow	33.30M	22.63M	37.38M	-10.58M	-1.06M	16.92M
Investing Cash Flow	-10.63M	-6.31M	2.49M	-56.42M	17.82M	-8.04M
Financing Cash Flow	-22.58M	-16.23M	-39.30M	60.24M	-13.90M	-15.30M

L. B. Foster Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 27.54 is above the 20-day moving average (MA) of 27.05, above the 50-day MA of 24.84, and above the 200-day MA of 23.48, indicating a neutral trend. The MACD of 0.73 indicates Positive momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 16.99 is Positive, 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
FSTR	76 Outperform	$291.86M	8.32	22.67%	―	-7.03%	397.79%
WAB	74 Outperform	33.62B	29.03	10.67%	0.48%	3.38%	17.21%
GBX	69 Neutral	1.43B	6.37	15.22%	2.68%	0.71%	84.57%
EVI	66 Neutral	404.30M	64.71	5.23%	―	10.26%	29.40%
TRN	64 Neutral	2.27B	24.19	9.56%	4.21%	-22.95%	-40.67%
RAIL	44 Neutral	181.52M	-11.05	12.34%	―	-6.00%	-12.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

L. B. Foster Company Corporate Events

L.B. Foster Announces Board Member Retirement

L.B. Foster Company announced that on September 4, 2025, Ms. Janet Lee retired from its Board of Directors, leading to a reduction in the Board’s size from eight to seven members. Ms. Lee’s departure was not due to any disagreement with the company but was prompted by her new role as General Counsel at Synopsys, Inc., following its acquisition of ANSYS, Inc., where she was previously employed.

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.