L.b. Foster Intrinsic Value Calculation – L.B. Foster’s Balance Sheet Experiences Tension

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L.B. ($NASDAQ:FSTR) Foster is a prominent American company engaged in the production and sale of infrastructure and transportation products, as well as services for rail, construction and energy markets. Recently, the company’s balance sheet has been experiencing some tension. This has resulted in a decrease in the equity on their balance sheet. The company has been attempting to reduce their debt and increase their liquidity in order to improve their financial situation.

However, they have faced a number of challenges in doing this, including low oil prices, weakened demand for their products, and high costs associated with improving their manufacturing facilities. As a result, the company’s stock has been volatile and their share price has decreased significantly. Despite the challenges they are facing, L.B. Foster remains optimistic about their future performance. They are confident that their cost-cutting initiatives will improve their financial stability and help them return to healthier balance sheet levels in the coming months. In the meantime, they will continue to focus on their core business and strive to build long-term value for shareholders.

Price History

L.B. FOSTER‘s balance sheet experienced tension on Friday, as the company’s stock opened at $12.7 and closed at $12.8, an increase of 2.0% over the previous closing price of 12.6. The tension in the balance sheet was felt throughout the day as investors watched to see whether the stock would be able to sustain the increase in value or if it was just a short-term surge. In the end, L.B. FOSTER ended the day with a moderate gain, but with investors still unsure of how the stock will perform in the coming days. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for L.b. Foster. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for L.b. Foster. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for L.b. Foster. More…

Key Ratios Snapshot

Some of the financial key ratios for L.b. Foster are shown below. More…

Analysis – L.b. Foster Intrinsic Value Calculation

At GoodWhale, we recently conducted an analysis of L.B. FOSTER‘s wellbeing, and our findings indicate a fair value of their stock at around $11.4. This calculation was made using our proprietary Valuation Line, which is based on a number of factors such as liquidity, financial health, and operational performance. Currently, L.B. FOSTER stock is trading at $12.8, which is above our estimated fair value and represents a 12.2% premium. While this suggests there may be some short-term upside to the stock, it may be wise for investors to take caution considering the current market volatility. 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 should exercise caution when considering investing in L.B. Foster as the company has a somewhat strained balance sheet. The company’s financials indicate that it has had a number of years in which its revenue has been decreasing while its expenses have been increasing. Furthermore, its debt to equity ratio is high when compared to other companies in the same industry.

Additionally, cash flow from operations has been declining over the past few years and its working capital has been shrinking. Despite this, the company does have a number of potential growth opportunities and has some strong points including high operating margins and strong customer relationships. Nevertheless, investors should thoroughly research the company before making any investment decisions.