Quality Investor

L.B. Foster Company

Rank #185Op. Leverage

FSTR · Nasdaq · Industrials

L.B. Foster Company (FSTR) — Rank #185 by gross profitability (GP/assets 0.34) · ROE 4.2% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0000352825 · all metrics point-in-time as of the filing date.

About

L.B.

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Foster Company provides engineered and manufactured products and services for building and supporting infrastructure in the United States, Canada, the United Kingdom, and internationally. It operates in two segments: Rail, Technologies, and Services; and Infrastructure Solutions. The Rail, Technologies, and Services segment offers new rail to passenger and short line freight railroads, industrial companies, and rail contractors, as well as new and used rails; rail accessories, such as track spikes, bolts, angle bars, tie plates, and other products; insulated rail joints and related accessories; fixation fasteners, coverboards, and special accessories; power rail; and trackwork products. This segment also provides friction management products and application systems; mobile and wayside systems; railroad condition monitoring systems and equipment including wheel impact load detection systems, wayside data collection and management systems, and rockfall, flood, earthworks, and bridge strike monitoring; and aftermarket services. The Infrastructure Solutions segment manufactures precast concrete products, including restrooms, concession stands, and other protective storage buildings under the CXT brand for national, state, and municipal parks; and sound walls, bridge beams, and other wet/dry utilities concrete products. This segment also provides steel bridge products; corrosion protection solutions; cuts, threads, and paints pipes; threading services for oil and gas production; fabricated steel and aluminum products; and protective pipeline coating services. L.B.

Foster Company was founded in 1902 and is headquartered in Pittsburgh, Pennsylvania.

Industry
Railroads
Sector
Industrials
State
PA
Filer Category
Accelerated filerSmaller reporting company
Fiscal Year End
December 31

Price History

FSTR+132.5% · +18.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$385.34M

P/E (annual)

53.1

P/S (annual)

0.7

P/B

2.2

P/OCF (annual)

10.8

Shareholder Yield

-5.9%

Employees

1,191

Industry

Railroads

Exchange

Nasdaq

Signal Flags

2 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.34
Return on equity
4.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.87
Current ratio
2.00×
Net cash
$5.78M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.9%

Growth

1/2 pass
Revenue growth
11.7%
Piotroski F-Score
6 / 9
Share dilution
5.9%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

4.5%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 5.9% — per-share value needs a total required return of 10.4% once share-count change is priced in.

vs. own 6-year median revenue growth: 2.9%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

0.4%

r = 10% (base)

4.5%

r = 12%

8.1%

Net debt / market cap: -1.5%

Base FCF: $25.2M3Y mean FCF: $28.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

24.3xExpensive
4.0xmed 5.5x67.1x

P / S

Price / revenue per share

0.4xExpensive
0.2xmed 0.3x0.5x

P / B

Price / book value per share

1.0xFair
0.4xmed 1.0x1.9x

P / GP

Price / gross profit per share

1.9xExpensive
1.0xmed 1.5x2.7x

P / FCF

Price / free cash flow per share

16.2xExpensive
2.8xmed 8.6x31.1x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.34

Primary signal (Novy-Marx).

7th of 9 SIC 50 peers

Return on equity

4.2%

Gross margin

21.1%

8th of 9 SIC 50 peers

Revenue growth (YoY)

11.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2015201620172020
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

1.7%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.87

5th of 9 SIC 50 peers (best = lowest)

Current ratio

2.00×

6th of 9 SIC 50 peers

Quick ratio

Net cash

$5.78M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$25.20M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.34

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.9%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20132020
Startup
Decline
Op. Leverage
Value