L.B. Foster Company
L.B. Foster Company Fundamental Analysis
L.B. Foster Company (FSTR) shows weak financial fundamentals with a PE ratio of 36.66, profit margin of 1.40%, and ROE of 4.34%. The company generates $0.6B in annual revenue with weak year-over-year growth of -2.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FSTR's fundamental strength across five key dimensions:
Efficiency Score
WeakFSTR struggles to generate sufficient returns from assets.
Valuation Score
ModerateFSTR shows balanced valuation metrics.
Growth Score
ModerateFSTR shows steady but slowing expansion.
Financial Health Score
ExcellentFSTR maintains a strong and stable balance sheet.
Profitability Score
WeakFSTR struggles to sustain strong margins.
Key Financial Metrics
Is FSTR Expensive or Cheap?
P/E Ratio
FSTR trades at 36.66 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FSTR's PEG of 0.68 indicates potential undervaluation.
Price to Book
The market values L.B. Foster Company at 1.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.94 times EBITDA. This is generally considered low.
How Well Does FSTR Make Money?
Net Profit Margin
For every $100 in sales, L.B. Foster Company keeps $1.40 as profit after all expenses.
Operating Margin
Core operations generate 4.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.34 in profit for every $100 of shareholder equity.
ROA
L.B. Foster Company generates $2.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
L.B. Foster Company generates limited operating cash flow of $36.42M, signaling weaker underlying cash strength.
Free Cash Flow
L.B. Foster Company produces free cash flow of $20.18M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.94 in free cash annually.
FCF Yield
FSTR converts 6.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How FSTR Stacks Against Its Sector Peers
| Metric | FSTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.66 | 25.84 | Worse (Expensive) |
| ROE | 4.34% | 1279.00% | Weak |
| Net Margin | 1.40% | -43714.00% (disorted) | Weak |
| Debt/Equity | 0.38 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.87 | 10.62 | Neutral |
| ROA | 2.28% | -1537441.00% (disorted) | Weak |
FSTR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews L.B. Foster Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-21.32%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-2.04%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-24.99%
Industry Style: Cyclical, Value, Infrastructure
Declining