LB Foster manufactures, fabricates, and distributes products and services for the rail, construction, energy, and utility markets worldwide. The company was founded in 1902 and is based in Pittsburgh, Pennsylvania.
FSTR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Foster L B Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Foster L B Co ranked in the 52th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 4.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Foster L B Co ended up being:
Foster L B Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.49. This coverage rate is greater than that of only 18.87% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Foster L B Co experienced a tax rate of about 88% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 97.52% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FSTR, try ROAD, CR, WLDN, ECHO, and GPN.
PITTSBURGH, Oct. 28, 2020 (GLOBE NEWSWIRE) -- L.B. Foster Company (NASDAQ: FSTR), today announced that it will release third quarter operating results after the market closes on Wednesday, November 4, 2020. L.B. Foster will host a conference call to discuss its operating results, market outlook, and developments in the business on Wednesday, November 4, 2020 at 5:00 p.m. Eastern Time. A presentation will be available on the Company’s website under the Investor Relations page immediately before the conference call begins. Those wishing to participate via the telephone may dial in at (833) 614-1392 (U.S. & Canada) or (914) 987-7113 (International). Those wishing to participate via the webcast should access the call through L.B. Foster’s Investor Relations page of the company’s website ...