FOSTER (LB) CO-A (FSTR) Stock Fundamental Analysis
NASDAQ:FSTR - Nasdaq - US3500601097 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FSTR. FSTR was compared to 127 industry peers in the Machinery industry. Both the profitability and the financial health of FSTR get a neutral evaluation. Nothing too spectacular is happening here. FSTR has a decent growth rate and is not valued too expensively.
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
FSTR has a better Return On Assets (10.62%) than 81.10% of its industry peers.
With an excellent Return On Equity value of 21.31%, FSTR belongs to the best of the industry, outperforming 85.04% of the companies in the same industry.
The Return On Invested Capital of FSTR (3.92%) is worse than 62.20% of 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 10.78%.
The last Return On Invested Capital (3.92%) for FSTR is above the 3 year average (3.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | 21.31% | ||
| ROIC | 3.92% |
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
FSTR has a Profit Margin (7.22%) which is in line with its industry peers.
FSTR's Profit Margin has improved in the last couple of years.
FSTR has a worse Operating Margin (2.74%) than 69.29% of its industry peers.
In the last couple of years the Operating Margin of FSTR has declined.
Looking at the Gross Margin, with a value of 22.11%, FSTR is doing worse than 70.08% of the companies in the same industry.
FSTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.74% | ||
| PM (TTM) | 7.22% | ||
| GM | 22.11% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FSTR is destroying value.
The number of shares outstanding for FSTR has been reduced compared to 1 year ago.
The number of shares outstanding for FSTR has been increased compared to 5 years ago.
The debt/assets ratio for FSTR has been reduced compared to a year ago.
2.2 Solvency
FSTR has an Altman-Z score of 3.52. This indicates that FSTR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.52, FSTR is in line with its industry, outperforming 59.06% of the companies in the same industry.
FSTR has a debt to FCF ratio of 9.96. This is a negative value and a sign of low solvency as FSTR would need 9.96 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.96, FSTR is doing worse than 62.20% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that FSTR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.48, FSTR perfoms like the industry average, outperforming 47.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 9.96 | ||
| Altman-Z | 3.52 |
ROIC/WACC0.38
WACC10.19%
2.3 Liquidity
A Current Ratio of 2.57 indicates that FSTR has no problem at all paying its short term obligations.
FSTR has a Current ratio of 2.57. This is in the better half of the industry: FSTR outperforms 68.50% of its industry peers.
FSTR has a Quick Ratio of 1.29. This is a normal value and indicates that FSTR is financially healthy and should not expect problems in meeting its short term obligations.
FSTR has a Quick ratio of 1.29. This is comparable to the rest of the industry: FSTR outperforms 55.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
FSTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 375.34%, which is quite impressive.
The Earnings Per Share has been growing by 20.23% on average over the past years. This is a very strong growth
The Revenue has decreased by -8.73% in the past year.
The Revenue has been decreasing by -2.95% on average over the past years.
EPS 1Y (TTM)375.34%
EPS 3Y128.76%
EPS 5Y20.23%
EPS Q2Q%-150%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y1.1%
Revenue growth 5Y-2.95%
Sales Q2Q%-21.34%
3.2 Future
The Earnings Per Share is expected to decrease by -28.26% on average over the next years. This is quite bad
Based on estimates for the next years, FSTR will show a small growth in Revenue. The Revenue will grow by 3.09% on average per year.
EPS Next Y-59.4%
EPS Next 2Y-28.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.73%
Revenue Next 2Y3.09%
Revenue Next 3YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FSTR is valuated cheaply with a Price/Earnings ratio of 6.86.
95.28% of the companies in the same industry are more expensive than FSTR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.52, FSTR is valued rather cheaply.
FSTR is valuated reasonably with a Price/Forward Earnings ratio of 11.37.
Based on the Price/Forward Earnings ratio, FSTR is valued cheaply inside the industry as 87.40% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FSTR to the average of the S&P500 Index (35.58), we can say FSTR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FSTR is valued a bit cheaper than the industry average as 64.57% of the companies are valued more expensively.
FSTR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.36 | ||
| EV/EBITDA | 12.09 |
4.3 Compensation for Growth
A cheap valuation may be justified as FSTR's earnings are expected to decrease with -28.26% in the coming years.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-28.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FSTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.82
-0.38 (-1.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.7%
Inst Owner Change0%
Ins Owners5.95%
Ins Owner Change11.13%
Market Cap251.54M
Analysts82.5
Price Target29.58 (24.18%)
Short Float %1.28%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-321.02%
Min EPS beat(2)-590.2%
Max EPS beat(2)-51.84%
EPS beat(4)1
Avg EPS beat(4)-31.55%
Min EPS beat(4)-590.2%
Max EPS beat(4)561.01%
EPS beat(8)3
Avg EPS beat(8)123.26%
EPS beat(12)4
Avg EPS beat(12)-1004.65%
EPS beat(16)4
Avg EPS beat(16)-802.18%
Revenue beat(2)0
Avg Revenue beat(2)-10.47%
Min Revenue beat(2)-15.28%
Max Revenue beat(2)-5.65%
Revenue beat(4)0
Avg Revenue beat(4)-6.88%
Min Revenue beat(4)-15.28%
Max Revenue beat(4)-1.64%
Revenue beat(8)4
Avg Revenue beat(8)-1.88%
Revenue beat(12)8
Avg Revenue beat(12)-0.47%
Revenue beat(16)9
Avg Revenue beat(16)-2.01%
PT rev (1m)0%
PT rev (3m)5.94%
EPS NQ rev (1m)-4.93%
EPS NQ rev (3m)3.8%
EPS NY rev (1m)-1.52%
EPS NY rev (3m)-5.26%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 11.37 | ||
| P/S | 0.5 | ||
| P/FCF | 30.36 | ||
| P/OCF | 13.7 | ||
| P/B | 1.47 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 12.09 |
EPS(TTM)3.47
EY14.57%
EPS(NY)2.09
Fwd EY8.79%
FCF(TTM)0.78
FCFY3.29%
OCF(TTM)1.74
OCFY7.3%
SpS47.75
BVpS16.17
TBVpS11.81
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | 21.31% | ||
| ROCE | 4.96% | ||
| ROIC | 3.92% | ||
| ROICexc | 3.95% | ||
| ROICexgc | 4.74% | ||
| OM | 2.74% | ||
| PM (TTM) | 7.22% | ||
| GM | 22.11% | ||
| FCFM | 1.64% |
ROA(3y)0.27%
ROA(5y)0.79%
ROE(3y)-2.71%
ROE(5y)-0.37%
ROIC(3y)3.59%
ROIC(5y)3.56%
ROICexc(3y)3.63%
ROICexc(5y)3.63%
ROICexgc(3y)4.6%
ROICexgc(5y)4.6%
ROCE(3y)4.55%
ROCE(5y)4.51%
ROICexcg growth 3Y33.69%
ROICexcg growth 5Y-6.5%
ROICexc growth 3Y34.62%
ROICexc growth 5Y-5.71%
OM growth 3Y32.75%
OM growth 5Y-5.11%
PM growth 3Y126%
PM growth 5Y3.2%
GM growth 3Y9.62%
GM growth 5Y2.45%
F-Score6
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 9.96 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 72.39% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 66.18% | ||
| Profit Quality | 22.76% | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.52 |
F-Score6
WACC10.19%
ROIC/WACC0.38
Cap/Depr(3y)50.24%
Cap/Depr(5y)50.32%
Cap/Sales(3y)1.4%
Cap/Sales(5y)1.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)375.34%
EPS 3Y128.76%
EPS 5Y20.23%
EPS Q2Q%-150%
EPS Next Y-59.4%
EPS Next 2Y-28.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y1.1%
Revenue growth 5Y-2.95%
Sales Q2Q%-21.34%
Revenue Next Year0.73%
Revenue Next 2Y3.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.26%
EBIT growth 3Y34.22%
EBIT growth 5Y-7.91%
EBIT Next Year101.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y421.16%
FCF growth 3YN/A
FCF growth 5Y-9.06%
OCF growth 1Y360.15%
OCF growth 3YN/A
OCF growth 5Y-3.24%