📊 FSTR Key Takeaways
Is Foster L B Co (FSTR) a Good Investment?
Foster L B Co operates as a stable metals service center with solid liquidity (1.87x current ratio) and strong interest coverage (19.5x), generating positive free cash flow of $25.2M. However, profitability is constrained with thin net margins of 1.4%, modest ROE of 4.3%, and net income growth that merely tracks revenue growth at 1.7% YoY, suggesting limited operational leverage in the commodity-exposed wholesale metals sector.
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
- Strong balance sheet with conservative leverage (0.24x debt/equity ratio) and solid interest coverage of 19.5x indicating minimal financial distress risk
- Positive free cash flow generation of $25.2M (4.7% FCF margin) providing flexibility for debt reduction or shareholder returns
- Adequate liquidity position with 1.87x current ratio and 1.15x quick ratio supporting operational needs
- 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
- Thin profit margins (1.4% net margin, 4.1% operating margin) expose the company to commodity price volatility and margin compression in the metals sector
- Weak returns on equity (4.3%) and assets (2.3%) suggest capital is not generating attractive returns relative to the invested capital base
- Flat earnings quality as net income growth of 1.7% matches revenue growth exactly, indicating no operational leverage or cost control improvements
- 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
- Gross margin trends - early indicator of metal pricing dynamics and pricing power
- Operating cash flow sustainability - must remain positive to maintain dividend capacity and debt reduction
- Return on equity progression - needs to show meaningful improvement above 4.3% to justify capital investment
- 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
The relatively thin 4.7% FCF margin may limit capital allocation flexibility.
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $131.5M | $444.0K | $0.04 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 10, 2026 | DEF 14A | ny20062559x1_def14a.htm | View → |
| Apr 2, 2026 | 4 | xslF345X06/form410680013_04022026.xml | View → |
| Apr 1, 2026 | 4 | xslF345X06/wk-form4_1775071234.xml | View → |
| Mar 30, 2026 | 4 | xslF345X06/form410680013_03302026.xml | View → |
| Mar 25, 2026 | 4 | xslF345X06/form410680013_03252026.xml | View → |
❓ Frequently Asked Questions about FSTR
What is the AI rating for FSTR?
Foster L B Co (FSTR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FSTR's key strengths?
Claude: Strong balance sheet with conservative leverage (0.24x debt/equity ratio) and solid interest coverage of 19.5x indicating minimal financial distress risk. Positive free cash flow generation of $25.2M (4.7% FCF margin) providing flexibility for debt reduction or shareholder returns. 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: Thin profit margins (1.4% net margin, 4.1% operating margin) expose the company to commodity price volatility and margin compression in the metals sector. Weak returns on equity (4.3%) and assets (2.3%) suggest capital is not generating attractive returns relative to the invested capital base. 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 $540.0M.
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 $0.69.
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 April 2026, Foster L B Co has a HOLD rating with 68% 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 4.3% (sector avg: 14%), net margin of 1.4% (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 HOLD 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 $35.6M, with capital expenditures of $10.4M. FCF margin is 4.7%.
How does FSTR compare to other Materials stocks?
Vs Materials sector averages: Net margin 1.4% (avg: 10%), ROE 4.3% (avg: 14%), current ratio 1.87 (avg: 1.6).