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
The company declared negative results in Mar'25 after positive results in Dec'24
- NET PROFIT(Q) At USD 3.5 MM has Fallen at -61.59%
- INTEREST(Q) At USD 1.55 MM has Grown at 13.59%
- INVENTORY TURNOVER RATIO(HY) Lowest at 5.11 times
3
With ROE of 21.27%, it has a attractive valuation with a 1.25 Price to Book Value
- Over the past year, while the stock has generated a return of -6.40%, its profits have risen by 304% ; the PEG ratio of the company is 0
4
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.40% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is L.B. Foster Co. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
L.B. Foster Co.
-9.13%
0.07
41.91%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.59%
EBIT Growth (5y)
5.15%
EBIT to Interest (avg)
2.90
Debt to EBITDA (avg)
2.56
Net Debt to Equity (avg)
0.47
Sales to Capital Employed (avg)
2.32
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
84.84%
ROCE (avg)
4.07%
ROE (avg)
7.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
1.25
EV to EBIT
22.50
EV to EBITDA
10.88
EV to Capital Employed
1.17
EV to Sales
0.58
PEG Ratio
0.02
Dividend Yield
NA
ROCE (Latest)
5.20%
ROE (Latest)
21.27%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Movement
13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 33.28 MM
INTEREST COVERAGE RATIO(Q)
Highest at 784.99
RAW MATERIAL COST(Y)
Fallen by -4.18% (YoY
NET SALES(Q)
Highest at USD 143.56 MM
OPERATING PROFIT(Q)
Highest at USD 12.14 MM
OPERATING PROFIT MARGIN(Q)
Highest at 8.45 %
PRE-TAX PROFIT(Q)
Highest at USD 7.63 MM
-14What is not working for the Company
NET PROFIT(Q)
At USD 3.5 MM has Fallen at -61.59%
INTEREST(Q)
At USD 1.55 MM has Grown at 13.59%
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.11 times
Here's what is working for L.B. Foster Co.
Pre-Tax Profit
At USD 7.63 MM has Grown at 336.04%
over average net sales of the previous four periods of USD 1.75 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Operating Cash Flow
Highest at USD 33.28 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)
Interest Coverage Ratio
Highest at 784.99
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at USD 143.56 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 12.14 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 8.45 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 7.63 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Raw Material Cost
Fallen by -4.18% (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.
Net Profit
At USD 3.5 MM has Fallen at -61.59%
over average net sales of the previous four periods of USD 9.1 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest
At USD 1.55 MM has Grown at 13.59%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Inventory Turnover Ratio
Lowest at 5.11 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






