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

• Market Cap: $320.62M
• Dividend Yield: N/A
• Average Volume (3M): 27.37K
• Price to Earnings (P/E): 70.7
• Beta (1Y): 1.47
• 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: 1.27
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: 14.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $31.00 ▲(15.03% 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 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 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 shows signs of recovery with positive revenue growth and improved cash flow generation. However, profitability margins have weakened, and leverage has increased. The company needs to focus on enhancing operational efficiency and maintaining a balanced financial structure to sustain growth.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a gross profit margin of 21.81%, which is a slight improvement from previous years. However, the net profit margin has decreased significantly to 0.96% from 8.09% in the previous year. Revenue growth is positive at 16.2% TTM, indicating a recovery from the previous year's decline. EBIT and EBITDA margins have also decreased, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has increased to 0.48 TTM, indicating a rise in leverage, but it remains manageable. Return on equity has dropped to 2.78% TTM, showing reduced profitability. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals some challenges. Free cash flow growth is positive at 20.39% TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is 0.54, suggesting that cash flows are not fully supporting net income. The free cash flow to net income ratio is high at 0.95, indicating efficient cash conversion despite profitability challenges.

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: Negative

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 29.32, below the 50-day MA of 28.16, and above the 200-day MA of 24.71, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 63.87 is Neutral, neither overbought nor oversold. The STOCH value of 87.54 is Negative, 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	$41.16B	34.99	11.07%	0.46%	4.40%	14.60%
GBX	68 Neutral	$1.66B	9.32	12.54%	2.71%	-8.66%	27.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RAIL	62 Neutral	$230.28M	4.68	―	―	-6.18%	―
FSTR	57 Neutral	$320.62M	70.68	2.74%	―	-5.51%	-88.11%
TRN	57 Neutral	$2.38B	25.89	10.04%	4.34%	-33.03%	-44.18%
RVSN	40 Underperform	$9.76M	-10.05	-74.03%	―	―	―

L. B. Foster Company Corporate Events

L.B. Foster Announces Board Member Resignation

On December 15, 2025, L.B. Foster Company announced the resignation of Alexander B. Jones from its Board of Directors, following the expiration of a Cooperation Agreement with 22NW Fund and related entities. The Board subsequently reduced its size from seven to six members. This decision was amicable and did not involve any disagreements regarding the company’s operations or policies. Both the company and 22NW expressed mutual appreciation for the partnership and contributions made during the agreement, with 22NW remaining supportive of the company’s future endeavors.

The most recent analyst rating on (FSTR) stock is a Hold with a $27.00 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 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.

The most recent analyst rating on (FSTR) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on L. B. Foster Company stock, see the FSTR Stock Forecast page.