LB Foster Price To Earning vs. Return On Asset

FSTR Stock  USD 28.28  0.48  1.73%   
Considering LB Foster's profitability and operating efficiency indicators, LB Foster's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess LB Foster's ability to earn profits and add value for shareholders. At this time, LB Foster's Days Sales Outstanding is relatively stable compared to the past year. As of 11/26/2024, Operating Cash Flow Sales Ratio is likely to grow to 0.07, while EV To Sales is likely to drop 0.34. At this time, LB Foster's Operating Income is relatively stable compared to the past year. As of 11/26/2024, Net Income is likely to grow to about 2.1 M, while Income Before Tax is likely to drop slightly above 896.8 K.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.120.2075
Way Down
Very volatile
For LB Foster profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LB Foster to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LB Foster utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LB Foster's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LB Foster over time as well as its relative position and ranking within its peers.
  

LB Foster's Revenue Breakdown by Earning Segment

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Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LB Foster. If investors know FSTR will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LB Foster listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
67.659
Earnings Share
3.87
Revenue Per Share
49.932
Quarterly Revenue Growth
(0.05)
Return On Assets
0.0304
The market value of LB Foster is measured differently than its book value, which is the value of FSTR that is recorded on the company's balance sheet. Investors also form their own opinion of LB Foster's value that differs from its market value or its book value, called intrinsic value, which is LB Foster's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LB Foster's market value can be influenced by many factors that don't directly affect LB Foster's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LB Foster's value and its price as these two are different measures arrived at by different means. Investors typically determine if LB Foster is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LB Foster's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

LB Foster Return On Asset vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining LB Foster's current stock value. Our valuation model uses many indicators to compare LB Foster value to that of its competitors to determine the firm's financial worth.
LB Foster is rated # 3 in price to earning category among its peers. It is rated below average in return on asset category among its peers . The ratio of Price To Earning to Return On Asset for LB Foster is about  1,540 . As of 11/26/2024, Return On Assets is likely to drop to 0. Comparative valuation analysis is a catch-all technique that is used if you cannot value LB Foster by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

FSTR Return On Asset vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

LB Foster

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
46.82 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

LB Foster

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0304
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

FSTR Return On Asset Comparison

LB Foster is currently under evaluation in return on asset category among its peers.

LB Foster Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in LB Foster, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LB Foster will eventually generate negative long term returns. The profitability progress is the general direction of LB Foster's change in net profit over the period of time. It can combine multiple indicators of LB Foster, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-19.2 M-20.2 M
Operating Income10.1 M12.4 M
Income Before Tax944 K896.8 K
Total Other Income Expense Net-3.7 M-3.8 M
Net Income1.3 M2.1 M
Income Tax Expense-355 K-337.2 K
Net Loss-41 M-39 M
Net Loss-42.2 M-40.1 M
Non Operating Income Net Other1.4 M1.2 M
Net Interest Income-6 M-6.3 M
Interest Income353.1 K294.2 K
Change To Netincome53.2 M55.8 M
Net Income Per Share 0.14  0.24 
Income Quality 28.77  30.21 
Net Income Per E B T 1.55  1.63 

FSTR Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on LB Foster. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of LB Foster position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the LB Foster's important profitability drivers and their relationship over time.

Use LB Foster in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if LB Foster position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LB Foster will appreciate offsetting losses from the drop in the long position's value.

LB Foster Pair Trading

LB Foster Pair Trading Analysis

The ability to find closely correlated positions to LB Foster could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LB Foster when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back LB Foster - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling LB Foster to buy it.
The correlation of LB Foster is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as LB Foster moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LB Foster moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for LB Foster can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your LB Foster position

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Climate Change
Climate Change Theme
Large and medium sized entities that are committing to fully or partially replace some traditional services or products with renewables sources of energy in order to combat global climate change. The Climate Change theme has 41 constituents at this time.
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Additional Tools for FSTR Stock Analysis

When running LB Foster's price analysis, check to measure LB Foster's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy LB Foster is operating at the current time. Most of LB Foster's value examination focuses on studying past and present price action to predict the probability of LB Foster's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LB Foster's price. Additionally, you may evaluate how the addition of LB Foster to your portfolios can decrease your overall portfolio volatility.