Why is L.B. Foster Co. ?
1
Poor Management Efficiency with a low ROCE of 4.07%
- The company has been able to generate a Return on Capital Employed (avg) of 4.07% signifying low profitability per unit of total capital (equity and debt)
2
Flat results in Mar 26
- PRE-TAX PROFIT(Q) At USD 1.41 MM has Fallen at -72.57%
- NET PROFIT(Q) At USD 1.5 MM has Fallen at -31.76%
- NET SALES(Q) At USD 121.14 MM has Fallen at -10.27%
3
With ROE of 4.94%, it has a expensive valuation with a 1.71 Price to Book Value
- Over the past year, while the stock has generated a return of 114.04%, its profits have fallen by -79.8%
4
High Institutional Holdings at 90.2%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Market Beating performance in long term as well as near term
- Along with generating 114.04% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to L.B. Foster Co. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is L.B. Foster Co. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
L.B. Foster Co.
114.04%
1.69
41.96%
S&P 500
22.24%
1.67
13.28%
Quality key factors
Factor
Value
Sales Growth (5y)
1.21%
EBIT Growth (5y)
17.52%
EBIT to Interest (avg)
2.90
Debt to EBITDA (avg)
2.56
Net Debt to Equity (avg)
0.47
Sales to Capital Employed (avg)
2.31
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
90.20%
ROCE (avg)
4.07%
ROE (avg)
7.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
1.71
EV to EBIT
13.47
EV to EBITDA
9.04
EV to Capital Employed
1.57
EV to Sales
0.63
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
11.68%
ROE (Latest)
4.94%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Movement
10What is working for the Company
NET PROFIT(HY)
At USD 4.55 MM has Grown at 293.59%
OPERATING CASH FLOW(Y)
Highest at USD 51.31 MM
RAW MATERIAL COST(Y)
Fallen by -6.72% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 5.92 times
DEBTORS TURNOVER RATIO(HY)
Highest at 7.41 times
-10What is not working for the Company
PRE-TAX PROFIT(Q)
At USD 1.41 MM has Fallen at -72.57%
NET PROFIT(Q)
At USD 1.5 MM has Fallen at -31.76%
NET SALES(Q)
At USD 121.14 MM has Fallen at -10.27%
Here's what is working for L.B. Foster Co.
Operating Cash Flow
Highest at USD 51.31 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Inventory Turnover Ratio
Highest at 5.92 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 7.41 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -6.72% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for L.B. Foster Co.
Pre-Tax Profit
At USD 1.41 MM has Fallen at -72.57%
over average net sales of the previous four periods of USD 5.14 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 1.5 MM has Fallen at -31.76%
over average net sales of the previous four periods of USD 2.2 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Net Sales
At USD 121.14 MM has Fallen at -10.27%
over average net sales of the previous four periods of USD 135 MMMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)






