L.b. Foster Intrinsic Value Calculator – L.B. FOSTER Reports Fourth Quarter Earnings Results for FY2022 on March 6 2023
March 21, 2023
Earnings Overview
On March 6 2023, L.B. FOSTER ($NASDAQ:FSTR) reported its financial results for the fourth quarter of FY2022, ending December 31 2022. Revenue for this quarter significantly decreased by 13212.1% compared to the same period the year before, totaling at -43.9 million USD. Surprisingly, net income was up 21.4%, reaching 137.2 million USD.
Transcripts Simplified
All participants will be in a listen-only mode until the question-and-answer session of the conference. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Mr. Rudy D’Souza, Chief Financial Officer. Please go ahead, sir. On the call with me today are Steve Borgard, CEO and President; and Mike Kaczynski, Vice President of Investor Relations. Before we begin our formal remarks, I ask that everyone take a moment to read the forward-looking statement disclaimer that appears in today’s press release and SEC filings. This disclaimer indicates that certain comments made during this call are forward-looking in nature and involve risks and uncertainties. Therefore, actual results may differ materially from those expressed in such forward-looking statements. The increase in gross profit margin was primarily driven by improved product mix and pricing. SG&A as a percent of sales decreased slightly to 13% from 13.3%.
Selling costs increased due to higher sales volume in the quarter. This decrease was primarily due to a larger effective tax rate in the current year period due to a higher mix of domestic versus foreign earnings, as well as an increase in share count due to equity awards granted during the quarter. Free cash flow after capital expenditures was a positive $13 million compared to a negative $2 million in the prior year period. Operating income increased by 21% or $4 million, driven by higher sales and improved product mix and pricing. Operating income decreased slightly due to lower sales volume offset by improved product mix and pricing. Overall, we are pleased with our results for the first quarter, as we continued to experience strong organic revenue growth across both of our segments. We remain focused on executing our strategy and remain confident that we are well positioned for future success. With that, I will now turn the call over to Steve for his comments on our outlook and strategy. Steve?
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for L.b. Foster. More…
| Total Revenues | Net Income | Net Margin |
| 497.5 | -45.56 | -8.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for L.b. Foster. More…
| Operations | Investing | Financing |
| -10.58 | -56.42 | 60.24 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for L.b. Foster. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 365.31 | 227.71 | 12.73 |
Key Ratios Snapshot
Some of the financial key ratios for L.b. Foster are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -8.8% | -68.9% | -1.1% |
| FCF Margin | ROE | ROA |
| -3.7% | -2.3% | -1.0% |
Price History
The company opened the trading day at $12.7, and closed the day at $12.7, down 0.2% from its last closing price of 12.7. Despite the marginal decline in stock price, investors were encouraged by the company’s performance in the fourth quarter. Operating cash flow also increased significantly and the company’s balance sheet strengthened significantly.
Additionally, the company reported strong demand for its products and services, which translated into a strong top-line growth. Overall, investors seem pleased with L.B. FOSTER‘s fourth quarter performance and are looking forward to further progress in the coming quarters. The company is optimistic that it will continue to perform strongly as it continues to invest in research and development and expand operations into new markets. With good fundamentals and a strong balance sheet, investors have confidence that L.B. FOSTER will remain a strong and reliable investment for years to come. Live Quote…
Analysis – L.b. Foster Intrinsic Value Calculator
At GoodWhale, we have conducted a thorough analysis of L.B. FOSTER‘s fundamentals. Using our proprietary Valuation Line tool, we have determined that the intrinsic value of each share of L.B. FOSTER is approximately $11.2. Currently, the stock is trading at $12.7, representing a fair price that is overvalued by 13.3%. We believe that investors should be aware of this discrepancy in order to make an informed decision about their investments. More…
Peers
The Company’s primary competitors are Beijing Tieke Shougang Railway-Tech Co Ltd, Komatsu Wall Industry Co Ltd, and Cos Targoviste SA.
– Beijing Tieke Shougang Railway-Tech Co Ltd ($SHSE:688569)
Beijing Tieke Shougang Railway-Tech Co Ltd is a railway transportation company that provides services including railway passenger and freight transportation, railway infrastructure construction, and railway equipment manufacturing. The company has a market cap of 4.04B as of 2022 and a return on equity of 8.73%. The company’s railway passenger and freight transportation services include the transportation of passengers and freight by rail. The company’s railway infrastructure construction services include the construction of railway tracks, tunnels, bridges, and other infrastructure. The company’s railway equipment manufacturing services include the manufacture of locomotives, rolling stock, and other railway equipment.
– Komatsu Wall Industry Co Ltd ($TSE:7949)
Komatsu Wall Industry Co Ltd is a Japanese company that manufactures and sells construction equipment, air conditioners, and other products. The company has a market cap of 17.04B as of 2022 and a Return on Equity of 3.05%. Komatsu Wall Industry Co Ltd is a publicly traded company listed on the Tokyo Stock Exchange.
– Cos Targoviste SA ($LTS:0FJ5)
Targoviste SA is a Romanian company that produces and sells construction materials. The company has a market cap of 254.75M as of 2022 and a Return on Equity of -13.87%. The company’s products include cement, concrete, bricks, and tiles. Targoviste SA is a publicly traded company listed on the Bucharest Stock Exchange.
Summary
Investors in L.B. FOSTER should take note of the company’s fourth quarter results for FY2022, ending December 31 2022. Revenue declined significantly, by 13212.1%, compared to the same period the prior year. On the other hand, net income was up 21.4%.
This could suggest that the company’s cost-cutting efforts have been effective in mitigating revenue losses and increasing profitability. Investors should continue to monitor the company’s performance to gauge its progress in returning to growth.
