📊 FSTR Key Takeaways
Is Foster L B Co (FSTR) a Good Investment?
Foster L B Co exhibits severe fundamental deterioration with net income down 82.4% YoY, negative operating cash flow of -$10.4M, and deeply negative free cash flow of -$13.4M. The company's razor-thin operating margins (1.7%), abysmal returns (ROE 0.9%, ROA 0.4%), and limited cash position relative to debt suggest structural profitability challenges. Unsustainable cash burn and tight interest coverage (1.8x) create material financial distress.
FOSTER L B CO shows decent balance-sheet strength and solid cash generation, with low leverage, strong interest coverage, and positive free cash flow supporting financial resilience. However, profitability remains thin, returns on capital are modest, and the sharp EPS decline despite stable net income raises questions about earnings quality and per-share performance. Fundamentally, this looks like a stable but low-margin business rather than a clearly strong compounder.
Why Buy Foster L B Co Stock? FSTR Key Strengths
- Adequate current ratio of 2.22x provides near-term liquidity cushion
- Moderate leverage with debt/equity ratio of 0.34x allows debt capacity
- Gross margin of 21.2% is reasonable for metals service center industry
- Healthy liquidity and conservative leverage, with a 1.87x current ratio and 0.24x debt-to-equity
- Positive free cash flow generation, with $25.20M of FCF and a 4.7% FCF margin
- Strong debt servicing capacity, with interest coverage of 19.5x
FSTR Stock Risks: Foster L B Co Investment Risks
- Negative free cash flow of -$13.4M is unsustainable and rapidly depletes $4.0M cash position
- Operating cash flow deficit despite positive net income raises earnings quality concerns and indicates working capital distress
- Profitability collapse with interest coverage at only 1.8x creates refinancing and covenant default risk
- Very thin net margin of 1.4% leaves limited room for operational setbacks or cost inflation
- Low ROE of 4.3% and ROA of 2.3% indicate modest efficiency in converting capital into profits
- Diluted EPS fell 82.3% year over year despite net income growth, suggesting weak per-share earnings quality or potential dilution
Key Metrics to Watch
- Operating cash flow and free cash flow trajectory - monitor if negative burn continues
- Interest coverage ratio and debt covenant compliance - risk of restructuring
- Cash balance and liquidity runway given current burn rate
- Operating margin and net margin stability
- Free cash flow conversion versus net income
Foster L B Co (FSTR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.22x current ratio provides a solid financial cushion.
FSTR Profit Margin, ROE & Profitability Analysis
FSTR vs Materials Sector: How Foster L B Co Compares
How Foster L B Co compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Foster L B Co Stock Overvalued? FSTR Valuation Analysis 2026
Based on fundamental analysis, Foster L B Co has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Foster L B Co Balance Sheet: FSTR Debt, Cash & Liquidity
FSTR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Foster L B Co's revenue has shown modest growth of 5% over the 5-year period. The most recent EPS of $3.89 reflects profitable operations.
FSTR Revenue Growth, EPS Growth & YoY Performance
FSTR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $97.8M | $1.5M | $0.14 |
| Q3 2025 | $137.5M | $4.4M | $0.40 |
| Q2 2025 | $140.8M | $775.0K | $0.07 |
| Q1 2025 | $97.8M | -$2.1M | $-0.20 |
| Q3 2024 | $137.5M | $515.0K | $0.05 |
| Q2 2024 | $140.8M | $1.4M | $0.12 |
| Q1 2024 | $115.5M | -$2.2M | $-0.20 |
| Q3 2023 | $130.0M | $515.0K | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Foster L B Co Dividends, Buybacks & Capital Allocation
FSTR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Foster L B Co (CIK: 0000352825)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FSTR
What is the AI rating for FSTR?
Foster L B Co (FSTR) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (HOLD) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FSTR's key strengths?
Claude: Adequate current ratio of 2.22x provides near-term liquidity cushion. Moderate leverage with debt/equity ratio of 0.34x allows debt capacity. ChatGPT: Healthy liquidity and conservative leverage, with a 1.87x current ratio and 0.24x debt-to-equity. Positive free cash flow generation, with $25.20M of FCF and a 4.7% FCF margin.
What are the risks of investing in FSTR?
Claude: Negative free cash flow of -$13.4M is unsustainable and rapidly depletes $4.0M cash position. Operating cash flow deficit despite positive net income raises earnings quality concerns and indicates working capital distress. ChatGPT: Very thin net margin of 1.4% leaves limited room for operational setbacks or cost inflation. Low ROE of 4.3% and ROA of 2.3% indicate modest efficiency in converting capital into profits.
What is FSTR's revenue and growth?
Foster L B Co reported revenue of $121.1M.
Does FSTR pay dividends?
Foster L B Co does not currently pay dividends.
Where can I find FSTR SEC filings?
Official SEC filings for Foster L B Co (CIK: 0000352825) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FSTR's EPS?
Foster L B Co has a diluted EPS of $0.14.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FSTR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Foster L B Co has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FSTR stock overvalued or undervalued?
Valuation metrics for FSTR: ROE of 0.9% (sector avg: 14%), net margin of 1.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy FSTR stock in 2026?
Our dual AI analysis gives Foster L B Co a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FSTR's free cash flow?
Foster L B Co's operating cash flow is $-10.4M, with capital expenditures of $3.0M. FCF margin is -11.1%.
How does FSTR compare to other Materials stocks?
Vs Materials sector averages: Net margin 1.2% (avg: 10%), ROE 0.9% (avg: 14%), current ratio 2.22 (avg: 1.6).