29.16 USD
-0.68 (-2.28%)
29.16 USD
0 (0%)
Taking everything into account, FSTR scores 4 out of 10 in our fundamental rating. FSTR was compared to 132 industry peers in the Machinery industry. While FSTR seems to be doing ok healthwise, there are quite some concerns on its profitability. FSTR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- FSTR had positive earnings in the past year.
- FSTR had a positive operating cash flow in the past year.
- Of the past 5 years FSTR 4 years were profitable.
- The reported operating cash flow has been mixed in the past 5 years: FSTR reported negative operating cash flow in multiple years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.46%, FSTR is doing worse than 62.12% of the companies in the same industry.
- FSTR has a Return On Equity of 2.80%. This is in the lower half of the industry: FSTR underperforms 61.36% of its industry peers.
- FSTR has a Return On Invested Capital (4.95%) which is in line with its industry peers.
- FSTR had an Average Return On Invested Capital over the past 3 years of 3.59%. This is significantly below the industry average of 10.24%.
- The last Return On Invested Capital (4.95%) for FSTR is above the 3 year average (3.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 2.8% | ||
| ROIC | 4.95% |
ROA(3y)0.27%
ROA(5y)0.79%
ROE(3y)-2.71%
ROE(5y)-0.37%
ROIC(3y)3.59%
ROIC(5y)3.56%
1.3 Margins
- The Profit Margin of FSTR (0.96%) is worse than 64.39% of its industry peers.
- In the last couple of years the Profit Margin of FSTR has grown nicely.
- With a Operating Margin value of 3.26%, FSTR is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
- FSTR's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 21.84%, FSTR is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of FSTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.26% | ||
| PM (TTM) | 0.96% | ||
| GM | 21.84% |
OM growth 3Y32.75%
OM growth 5Y-5.11%
PM growth 3Y126%
PM growth 5Y3.2%
GM growth 3Y9.62%
GM growth 5Y2.45%
2. Health
2.1 Basic Checks
- FSTR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- FSTR has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, FSTR has more shares outstanding
- Compared to 1 year ago, FSTR has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.88 indicates that FSTR is not in any danger for bankruptcy at the moment.
- FSTR has a Altman-Z score of 3.88. This is in the better half of the industry: FSTR outperforms 64.39% of its industry peers.
- The Debt to FCF ratio of FSTR is 2.12, which is a good value as it means it would take FSTR, 2.12 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.12, FSTR is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
- A Debt/Equity ratio of 0.33 indicates that FSTR is not too dependend on debt financing.
- FSTR's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. FSTR outperforms 61.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 3.88 |
ROIC/WACC0.49
WACC10.05%
2.3 Liquidity
- FSTR has a Current Ratio of 2.21. This indicates that FSTR is financially healthy and has no problem in meeting its short term obligations.
- FSTR has a Current ratio (2.21) which is comparable to the rest of the industry.
- FSTR has a Quick Ratio of 1.21. This is a normal value and indicates that FSTR is financially healthy and should not expect problems in meeting its short term obligations.
- FSTR's Quick ratio of 1.21 is in line compared to the rest of the industry. FSTR outperforms 50.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
- FSTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -84.32%.
- Measured over the past years, FSTR shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.23% on average per year.
- FSTR shows a decrease in Revenue. In the last year, the revenue decreased by -5.51%.
- Measured over the past years, FSTR shows a decrease in Revenue. The Revenue has been decreasing by -2.95% on average per year.
EPS 1Y (TTM)-84.32%
EPS 3Y128.76%
EPS 5Y20.23%
EPS Q2Q%-87.77%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y1.1%
Revenue growth 5Y-2.95%
Sales Q2Q%0.6%
3.2 Future
- Based on estimates for the next years, FSTR will show a very negative growth in Earnings Per Share. The EPS will decrease by -19.39% on average per year.
- FSTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.39% yearly.
EPS Next Y-71.85%
EPS Next 2Y-32.65%
EPS Next 3Y-19.39%
EPS Next 5YN/A
Revenue Next Year0.32%
Revenue Next 2Y2.07%
Revenue Next 3Y2.39%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 47.80, which means the current valuation is very expensive for FSTR.
- 66.67% of the companies in the same industry are cheaper than FSTR, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, FSTR is valued quite expensively.
- FSTR is valuated correctly with a Price/Forward Earnings ratio of 15.79.
- Based on the Price/Forward Earnings ratio, FSTR is valued cheaper than 81.82% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. FSTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.8 | ||
| Fwd PE | 15.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FSTR is valued a bit cheaper than 69.70% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FSTR is valued cheaper than 92.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.93 | ||
| EV/EBITDA | 12.35 |
4.3 Compensation for Growth
- FSTR's earnings are expected to decrease with -19.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.36
EPS Next 2Y-32.65%
EPS Next 3Y-19.39%
5. Dividend
5.1 Amount
- FSTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FOSTER (LB) CO-A / FSTR FAQ
Can you provide the ChartMill fundamental rating for FOSTER (LB) CO-A?
ChartMill assigns a fundamental rating of 4 / 10 to FSTR.
What is the valuation status of FOSTER (LB) CO-A (FSTR) stock?
ChartMill assigns a valuation rating of 4 / 10 to FOSTER (LB) CO-A (FSTR). This can be considered as Fairly Valued.
What is the profitability of FSTR stock?
FOSTER (LB) CO-A (FSTR) has a profitability rating of 3 / 10.
What is the valuation of FOSTER (LB) CO-A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FOSTER (LB) CO-A (FSTR) is 47.8 and the Price/Book (PB) ratio is 1.73.
What is the expected EPS growth for FOSTER (LB) CO-A (FSTR) stock?
The Earnings per Share (EPS) of FOSTER (LB) CO-A (FSTR) is expected to decline by -71.85% in the next year.