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L. B. Foster Company (FSTR)
NASDAQ:FSTR
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L. B. Foster Company
(NASDAQ:FSTR)
70Outperform
L. B. Foster Company (FSTR) vs. S&P 500 (SPY)
Market Cap
$221.29M
Dividend YieldN/A
Average Volume (3M)46.38K
Price to Earnings (P/E)5.3
Beta (1Y)1.05
Revenue Growth-2.39%
EPS Growth2863.06%
CountryUS
Employees1,065
SectorIndustrials
Sector Strength67
IndustryTransportation
Share Statistics
EPS (TTM)3.90
Shares Outstanding10,752,633
10 Day Avg. Volume45,287
30 Day Avg. Volume46,380
Financial Highlights & Ratios
PEG Ratio0.00184
Price to Book (P/B)N/A
Price to Sales (P/S)0.42
Price to Cash Flow (P/CF)2.30
P/FCF Ratio2.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.00Price Target Upside21.48% Upside
Rating ConsensusHold
Number of Analyst Covering0
L. B. Foster Company Business Overview & Revenue Model
Company DescriptionL.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 MoneyL.B. Foster Company generates revenue through the sale of its diverse product portfolio and related services across its business segments. The Rail Technologies and Services segment provides products and services to railroads and transit agencies, focusing on rail fastening systems, friction management solutions, and track components, which are crucial for rail infrastructure maintenance and development. The Construction Products segment supplies precast concrete products, bridge decking, and steel products used in infrastructure projects. Meanwhile, the Tubular and Energy Services segment offers coated pipe and pipeline accessories primarily to the oil and gas industry. The company's revenue is driven by both direct sales to end customers and through long-term contracts, benefiting from ongoing infrastructure projects and maintenance needs. Strategic partnerships and the company's ability to leverage its industry expertise also play a significant role in contributing to its earnings.
L. B. Foster Company Financial Statement Overview
Summary
L. B. Foster Company has demonstrated a commendable recovery in profitability and improved its balance sheet strength with lower leverage and higher equity. However, its revenue decline and reduced cash flow efficiency highlight potential challenges. The company appears to be on a positive trajectory, but sustaining growth and enhancing cash flow generation are critical for future stability.Income Statement
The company has shown a significant improvement in its net profit margin, which increased from 0.27% in 2023 to 8.09% in 2024. The gross profit margin also improved, alongside a notable increase in EBIT margin from 1.87% to 3.87%. However, there is a slight decline in revenue year-over-year by 2.39%, which poses a risk to sustained growth.75
Positive
Balance Sheet
The balance sheet indicates a strong equity position with an increase in stockholders' equity from 142 million in 2023 to 178 million in 2024. The debt-to-equity ratio improved significantly, dropping from 0.47 in 2023 to 0.08 in 2024, showcasing reduced leverage. The equity ratio improved from 45.49% in 2023 to 53.32% in 2024, indicating a stronger capital structure. However, the overall asset base has not grown significantly, which could limit future expansion.70
Positive
Cash Flow
The operating cash flow to net income ratio decreased, reflecting lower efficiency in converting net income to cash flow. Free cash flow remained stable, but declined compared to the previous year. The company has managed to maintain positive free cash flow despite fluctuations in operating cash flow, but the reduction in cash flow generation could signal potential liquidity challenges if not addressed.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 530.76M | 543.74M | 497.50M | 513.62M | 497.41M | Gross Profit |
| 118.06M | 112.81M | 89.61M | 86.30M | 95.01M | EBIT |
| 20.51M | 10.14M | 2.36M | 7.55M | 17.74M | EBITDA |
| 33.52M | 22.94M | 9.21M | 18.36M | 29.21M | Net Income Common Stockholders |
| 42.95M | 1.46M | -45.68M | 3.63M | 25.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.45M | 2.56M | 2.88M | 10.37M | 7.56M | Total Assets |
| 334.55M | 312.40M | 365.31M | 342.60M | 370.39M | Total Debt |
| 14.88M | 67.14M | 106.04M | 43.53M | 58.54M | Net Debt |
| 12.42M | 64.58M | 103.16M | 33.16M | 50.98M | Total Liabilities |
| 155.54M | 169.57M | 227.71M | 158.99M | 193.56M | Stockholders Equity |
| 178.32M | 142.11M | 137.18M | 183.09M | 176.83M |
| Cash Flow | Free Cash Flow | |||
| 22.63M | 32.44M | -18.21M | -5.68M | 7.74M | Operating Cash Flow |
| 22.63M | 37.38M | -10.58M | -1.06M | 16.92M | Investing Cash Flow |
| -6.31M | 2.07M | -56.42M | 17.82M | -8.04M | Financing Cash Flow |
| -16.23M | -39.30M | 60.24M | -13.90M | -15.30M |
L. B. Foster Company Technical Analysis
Negative
20.58
Price Trends
25.13
Negative
25.64
Negative
23.12
Negative
Market Momentum
-1.35
Negative
33.67
Neutral
50.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSTR, the sentiment is Negative. The current price of 20.58 is below the 20-day moving average (MA) of 21.33, below the 50-day MA of 25.13, and below the 200-day MA of 23.12, indicating a bearish trend. The MACD of -1.35 indicates Negative momentum. The RSI at 33.67 is Neutral, neither overbought nor oversold. The STOCH value of 50.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSTR.
L. B. Foster Company Risk Analysis
L. B. Foster Company disclosed 27 risk factors in its most recent earnings report. L. B. Foster Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
L. B. Foster Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $221.29M | 5.27 | 26.81% | ― | -2.39% | 2863.06% | |
70 Neutral | $2.42B | 18.00 | 14.57% | 3.85% | 3.21% | 29.59% | |
69 Neutral | $32.39B | 31.38 | 10.26% | 0.45% | 7.34% | 32.91% | |
66 Neutral | $1.69B | 9.30 | 13.71% | 2.25% | -9.47% | 69.11% | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% | |
57 Neutral | $1.05B | 22.80 | 7.09% | 4.71% | -2.04% | -1.36% | |
47 Neutral | $117.41M | ― | 156.43% | ― | 55.84% | -159.47% |
* Industrials Sector Average
Performance Comparison
FSTR
L. B. Foster Company
20.58
-6.73
-24.64%
RAIL
Freightcar America
5.96
2.11
54.81%
GBX
Greenbrier
53.00
2.00
3.92%
KALU
Kaiser Aluminum
64.91
-21.03
-24.47%
TRN
Trinity Industries
29.00
2.12
7.89%
WAB
Westinghouse Air Brake Technologies
186.92
41.93
28.92%
L. B. Foster Company Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -20.11% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced view with significant profitability improvements and strategic execution offset by challenges in the infrastructure segment and lower backlog levels. The company is optimistic about future growth driven by its strategic focus on rail technologies and precast concrete.Highlights
Improved Profitability and Cash Generation
Gross margins increased by 100 basis points to 22.3% in Q4 2024, with adjusted EBITDA up 18.7% to $7.2 million. Operating cash totaled $24.3 million, contributing to a $20.9 million reduction in net debt.
Rail Segment Growth
Rail segment revenues increased by 14.2% in Q4 2024, driven by higher volumes. Gross margins in this segment were up 300 basis points.
Strategic Playbook Execution
The company repurchased 2.7% of outstanding shares in 2024, finalized the Union Pacific settlement, and announced a new $40 million stock buyback program.
Strong Full Year Financial Performance
2024 reported sales were $530.8 million with gross margins expanding to 22.2%, and adjusted EBITDA increasing by $1.8 million to $33.6 million.
Precast Concrete and Rail Friction Management Growth
Backlog for precast concrete increased by 4.6%, and friction management backlog increased by 53.4%.
Lowlights
Decline in Infrastructure Segment
Infrastructure segment revenue decreased by $16.6 million or 25.2% in Q4 2024 due to soft market conditions, particularly in the steel products business.
Lower Backlog and Book-to-Bill Ratio
Consolidated backlog was down $28 million or 13% from last year, with a book-to-bill ratio below one, partly due to strategic initiatives.
Challenges in Steel Products
Gross margins in infrastructure solutions were down 90 basis points to 22.6% due to lower sales volumes and an unfavorable business mix within steel products.
Company Guidance
During the L.B. Foster Company's fourth quarter 2024 earnings call, various metrics highlighted the company's financial health and strategic progress. The company reported a gross margin of 22.3%, improved by 100 basis points from the previous year despite a 5% decline in sales. Adjusted EBITDA increased by 18.7% to $7.2 million due to lower SG&A expenses. Operating cash flow was strong at $24.3 million, contributing to a reduction in net debt by $20.9 million to $44.5 million, bringing the gross leverage ratio down to 1.2 times. For the full year, sales were $530.8 million, with adjusted EBITDA rising to $33.6 million, and a 160 basis point increase in gross margins to 22.2%. The company finalized the Union Pacific settlement, improving cash generation by $8 million annually. Additionally, L.B. Foster announced a new $40 million stock buyback program, reflecting its commitment to shareholder returns and confidence in ongoing strategic initiatives.L. B. Foster Company Corporate Events
Executive/Board Changes
L.B. Foster Announces Leadership Transitions for 2025
Neutral
Dec 6, 2024
L.B. Foster Company is undergoing significant leadership transitions as Brian H. Kelly plans his retirement effective December 31, 2025, and will serve as Senior Advisor to the CEO starting January 1, 2025. Concurrently, the Board has promoted Jamie F. O’Neill and Sara Fay Rolli to Senior Vice President roles to assume Kelly’s responsibilities, ensuring continuity and fresh perspectives in the company’s Human Resources and Operational Administration sectors.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.