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

• Market Cap: $293.08M
• Dividend Yield: N/A
• Average Volume (3M): 27.37K
• Price to Earnings (P/E): 63.5
• Beta (1Y): 1.44
• Revenue Growth: -5.51%
• EPS Growth: -88.11%
• Country: US
• Employees: 1,057
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.40
• Shares Outstanding: 10,393,009
• 10 Day Avg. Volume: 37,001
• 30 Day Avg. Volume: 27,372
• PEG Ratio: <0.01
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 22.46
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 12.92
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.16
• Revenue Forecast (FY): $538.17M

• Rating: 57 Neutral
• Price Target: $27.00 ▲(0.19% Upside)

L.B. Foster's stock score is primarily influenced by its financial performance, which shows recovery signs but is hindered by weakened profitability margins and increased leverage. Technical analysis indicates a neutral trend, while valuation suggests potential overvaluation. The earnings call highlights growth potential in the infrastructure segment, despite challenges in the rail segment.

Positive Factors

Strong Cash Generation

Strong cash generation enhances financial flexibility, allowing the company to reduce debt and invest in growth opportunities, supporting long-term stability.

Increased Orders and Backlog

Rising orders and backlog indicate strong demand and future revenue potential, providing a solid foundation for sustained growth.

Sales Growth in Infrastructure Segment

Growth in the infrastructure segment reflects robust market demand and strengthens the company's position in a key business area, supporting long-term revenue expansion.

Negative Factors

Decreased Profitability

Decreased profitability can hinder reinvestment in the business and affect long-term competitive positioning, requiring strategic focus on cost management.

Higher Production Costs

Rising production costs reduce profit margins, potentially impacting the company's ability to maintain competitive pricing and invest in growth.

Decline in Rail Revenues

A decline in rail revenues suggests challenges in a key segment, which may affect overall growth and require strategic adjustments to regain momentum.

L. B. Foster Company Business Overview & Revenue Model

Company Description

L. B. Foster Company (FSTR) is a leading provider of products and services for the rail, construction, and energy sectors. Founded in 1902, the company specializes in manufacturing and supplying a wide range of infrastructure solutions, including rail and transit products, precast concrete structures, and energy-related services. With a focus on innovation and quality, L. B. Foster serves both domestic and international markets, providing essential materials and technology that support the development and maintenance of critical infrastructure.

How the Company Makes Money

L. B. Foster generates revenue primarily through the sale of its manufactured products and services in several key sectors, including rail, construction, and energy. The company has established multiple revenue streams, including the sale of rail track and accessories, precast concrete products, and energy-related solutions. Additionally, L. B. Foster engages in service contracts that provide ongoing maintenance and support for its infrastructure products. Strategic partnerships with various industry stakeholders, such as rail operators and construction firms, further enhance its revenue opportunities. The company also benefits from long-term contracts and a diverse customer base, which provide stability and predictability in its earnings.

L. B. Foster Company Financial Statement Overview

Summary

L. B. Foster Company demonstrates a solid recovery in revenue and cash flow growth, with stable gross margins. While profitability remains a challenge, the company maintains a balanced debt profile and strong equity position. Continued focus on improving net margins and returns on equity could enhance overall financial performance.

Income Statement

The company shows a positive trend in revenue growth with a 16.2% increase in TTM, recovering from a decline in the previous year. Gross profit margin is stable at around 21.8%, indicating efficient cost management. However, the net profit margin is relatively low at 0.96%, suggesting limited profitability. EBIT and EBITDA margins have improved but remain modest, reflecting operational challenges.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.48, indicating a balanced approach to leveraging. Return on equity is low at 2.78%, suggesting limited returns for shareholders. The equity ratio stands at 52.3%, showing a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

The company exhibits strong free cash flow growth of 55.4% in TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.54, showing adequate cash flow relative to earnings. The free cash flow to net income ratio is high at 0.95, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	507.82M	530.76M	543.74M	497.50M	513.62M	497.41M
Gross Profit	110.73M	118.06M	112.04M	89.61M	86.30M	95.01M
EBITDA	29.03M	33.52M	21.73M	9.12M	21.43M	31.32M
Net Income	4.89M	42.95M	1.46M	-45.56M	3.63M	7.58M
Balance Sheet
Total Assets	333.89M	334.55M	312.40M	365.31M	342.60M	370.39M
Cash, Cash Equivalents and Short-Term Investments	3.51M	2.45M	2.56M	2.88M	10.37M	7.56M
Total Debt	84.43M	61.65M	67.14M	106.04M	43.53M	58.54M
Total Liabilities	158.29M	155.54M	169.57M	227.71M	158.99M	193.56M
Stockholders Equity	174.80M	178.32M	142.11M	137.18M	183.09M	176.83M
Cash Flow
Free Cash Flow	27.72M	12.84M	32.44M	-18.21M	-5.68M	7.74M
Operating Cash Flow	37.73M	22.63M	36.96M	-10.58M	-1.06M	16.92M
Investing Cash Flow	-10.36M	-6.31M	2.49M	-56.42M	17.82M	-8.04M
Financing Cash Flow	-27.28M	-16.23M	-39.30M	60.24M	-13.90M	-15.30M

L. B. Foster Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 26.95 is below the 20-day moving average (MA) of 27.36, below the 50-day MA of 27.04, and above the 200-day MA of 23.47, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 61.88 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	79 Outperform	$37.90B	31.91	11.07%	0.46%	4.40%	14.60%
GBX	69 Neutral	$1.44B	7.33	14.03%	2.71%	-8.66%	27.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TRN	62 Neutral	$2.27B	24.38	10.04%	4.34%	-33.03%	-44.18%
RAIL	60 Neutral	$172.48M	4.38	―	―	-6.18%	―
FSTR	57 Neutral	$293.08M	63.52	2.74%	―	-5.51%	-88.11%
RVSN	42 Neutral	$17.19M	-0.83	-74.03%	―	―	―

L. B. Foster Company Corporate Events

L.B. Foster Announces Executive Vice President’s Retirement

L.B. Foster Company announced that Brian H. Kelly, Executive Vice President and Senior Advisor to the CEO, will retire on December 31, 2025. The company’s Compensation Committee has approved a Retirement Agreement that includes accelerated vesting of stock awards and performance share units, as well as payments under various company plans, contingent upon Mr. Kelly’s compliance with specific covenants.