XVARY Composite Score
45
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
L.B. Foster sells rail and infrastructure products that keep tracks, bridges, and industrial sites working.
How it gets paid
Last year L.B. Foster made $540M in revenue. Rail Products was the main engine at $189M, or 35% of sales.
Why it's growing
Revenue grew 1.7% last year. EPS was $0.47, up 17% vs. prior year, and gross margin was 21.6%.
What just happened
Quarter revenue near ~$135M — the stock still asks you to pay 62.7x trailing earnings.
At a Glance
C++ balance sheet — some cracks in the foundation
10/100 earnings predictability — expect surprises
62.7x trailing p/e — you're paying up for this one
20.2% return on capital — every dollar works hard here
$3.89 fy2024 eps est
XVARY composite: 45/100 — below average
What They Do
L.B. Foster sells rail and infrastructure products that keep tracks, bridges, and industrial sites working.
This is a parts-and-problems business. When your rail line or bridge system needs a fix, you do not shop for vibes. You call the vendor that already knows the asset. That stickiness shows up in a 20.2% return on capital (how much profit each invested dollar earns, so what: the business can still produce solid returns despite a 5.9% operating margin).
How They Make Money
$540M
annual revenue · their business grew +1.7% last year
Rail Products
$189M
Global Friction Management
$86M
Technology Services and Solutions
$81M
Infrastructure Technologies
$184M
The Products That Matter
Rail track and services
Rail Products
$189M · ~35% of revenue
This matches the Rail Products row on the revenue bridge (same as basics). The old $297M / 55% cut did not reconcile to that table.
~35% of revenue
Friction, tech services, infrastructure
Non-rail segments (bridge)
$351M · ~65% combined
Global Friction Management, Technology Services, and Infrastructure Technologies sum to the rest of the $540M base. Growth rates vary by line; use filings for segment vs. prior year — the old $243M / +25% stub did not match these rows.
diversification
Key Numbers
62.7x
trailing p/e
P/E → price compared with last year's profit → so what: you are paying a premium multiple for a company that only recently got earnings back on track.
20.2%
return on capital
Return on capital → profit earned on the money used in the business → so what: this turnaround is producing better returns than the margin line suggests.
5.9%
operating margin
Operating margin → profit left after running the business → so what: there is profit here, but not enough to absorb many mistakes.
$84M
long-term debt
Debt → money the company owes over time → so what: average balance sheet quality matters more when your market cap is only about $281M.
Financial Health
C++
Strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $84M (23% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
missed estimates
Quarter revenue near ~$135M — the stock still asks you to pay 62.7x trailing earnings.
EPS was $0.47, up 17% vs. prior year, and gross margin was 21.6%. The quarter says execution improved. The valuation says investors already noticed.
$135M
revenue (Q)
$0.47
eps (Q)
21.6%
gross margin (Q)
the number that mattered
Project timing moves a ~$281M mcap name hard — but quarter revenue belongs near ~$135M, not $380M.
source: company earnings report, 2026
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What Could Go Wrong
Your #1 risk is domestic rail exposure staying heavy while backlog and margin both move the wrong way.
Med
Rail concentration
Rail Products is about $189M (~ 35% of $540M on this bridge). The page still flags a tough domestic rail backdrop.
If rail weakens further, the largest named row on the bridge is exposed first.
Med
Margin compression
Q4 gross margin fell 260 basis points to 19.7% even as revenue beat expectations by 25.1%.
That's the bad version of operating leverage — more sales, less cushion.
Med
Valuation reset
A 62.7x trailing p/e gives you very little forgiveness for a business with a 5.9% operating margin and a C++ balance sheet.
If execution stays messy, the multiple can compress before earnings improve.
Med
Guidance miss
Management set 2026 targets of $540M–$580M in sales and $41M–$46M in EBITDA. That is now the bar.
Missing either side of that range would pressure the mix-shift thesis fast.
About $189M of annual revenue sits in Rail Products on this bridge, and the latest quarter showed 19.7% gross margin after a 260-basis-point drop. That is not much room for execution mistakes.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Earnings
Q1 2027 earnings
Expected around May 2026. Analysts estimate a loss of ($0.18) per share, so the bar is low but not invisible.
Margin
Gross margin recovery
Q4 gross margin was 19.7% after a 260-basis-point drop. If that number keeps sliding, revenue growth will not matter much.
Segment mix
Infrastructure versus rail
On the ~$540M revenue bridge, Rail Products is ~35% (~$189M); the infrastructure / friction / services lines make up the rest. Watch whether the non-rail bundle keeps growing faster than rail.
Guidance
2026 sales and ebitda targets
Watch the $540M–$580M sales target and $41M–$46M EBITDA target set on March 3. Those are the numbers that would justify the valuation story.
Analyst Rankings
earnings predictability
10 / 100
These results swing around. In human-speak, analysts do not have a clean read on the next few quarters.
average price target
$32.00
Four analysts see modest upside from $28.20. In human-speak, they see some room, not a dramatic rerating.
Source: institutional data
Institutional Activity
institutional ownership data for FSTR is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$28
Current price
Target midpoint · from current
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