LB Foster Return On Equity vs. Price To Book
| FSTR Stock | USD 28.28 0.48 1.73% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.01030181 | Current Value 0.0108 | Quarterly Volatility 0.31233301 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.12 | 0.2075 |
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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.
FSTR |
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 Price To Book vs. Return On Equity 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 # 4 in return on equity category among its peers. It is rated below average in price to book category among its peers fabricating about 6.30 of Price To Book per Return On Equity. At this time, LB Foster's Return On Equity is relatively stable compared to the past year. 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 Price To Book vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
LB Foster |
| = | 0.26 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
LB Foster |
| = | 1.66 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
FSTR Price To Book Comparison
LB Foster is currently under evaluation in price to book 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -19.2 M | -20.2 M | |
| Operating Income | 10.1 M | 12.4 M | |
| Income Before Tax | 944 K | 896.8 K | |
| Total Other Income Expense Net | -3.7 M | -3.8 M | |
| Net Income | 1.3 M | 2.1 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 Other | 1.4 M | 1.2 M | |
| Net Interest Income | -6 M | -6.3 M | |
| Interest Income | 353.1 K | 294.2 K | |
| Change To Netincome | 53.2 M | 55.8 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.Use Investing Themes to Complement your LB Foster position
In addition to having LB Foster in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Asset Allocation ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Asset Allocation ETFs theme has 144 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.