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FSTR (L.B. Foster Co) Beneish M-Score : -2.72 (As of Oct. 31, 2024)


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What is L.B. Foster Co Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.72 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for L.B. Foster Co's Beneish M-Score or its related term are showing as below:

FSTR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.6   Med: -2.58   Max: -2.02
Current: -2.72

During the past 13 years, the highest Beneish M-Score of L.B. Foster Co was -2.02. The lowest was -3.60. And the median was -2.58.


L.B. Foster Co Beneish M-Score Historical Data

The historical data trend for L.B. Foster Co's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

L.B. Foster Co Beneish M-Score Chart

L.B. Foster Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.02 -2.73 -2.40 -2.95 -3.22

L.B. Foster Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.20 -3.60 -3.22 -2.62 -2.72

Competitive Comparison of L.B. Foster Co's Beneish M-Score

For the Railroads subindustry, L.B. Foster Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


L.B. Foster Co's Beneish M-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, L.B. Foster Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where L.B. Foster Co's Beneish M-Score falls into.



L.B. Foster Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of L.B. Foster Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.867+0.528 * 0.9498+0.404 * 1.0127+0.892 * 1.0276+0.115 * 1.0339
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0487+4.679 * -0.027279-0.327 * 0.969
=-2.72

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $96.5 Mil.
Revenue was 140.796 + 124.32 + 134.877 + 145.345 = $545.3 Mil.
Gross Profit was 30.523 + 26.249 + 29.043 + 28.224 = $114.0 Mil.
Total Current Assets was $191.5 Mil.
Total Assets was $333.3 Mil.
Property, Plant and Equipment(Net PPE) was $88.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.6 Mil.
Selling, General, & Admin. Expense(SGA) was $99.1 Mil.
Total Current Liabilities was $80.4 Mil.
Long-Term Debt & Capital Lease Obligation was $97.5 Mil.
Net Income was 2.847 + 4.436 + -0.43 + 0.515 = $7.4 Mil.
Non Operating Income was 0.152 + 3.536 + -0.203 + -0.917 = $2.6 Mil.
Cash Flow from Operations was -4.954 + -21.864 + 22.066 + 18.643 = $13.9 Mil.
Total Receivables was $108.3 Mil.
Revenue was 148.034 + 115.488 + 137.173 + 130.015 = $530.7 Mil.
Gross Profit was 32.252 + 23.291 + 26.774 + 23.097 = $105.4 Mil.
Total Current Assets was $203.8 Mil.
Total Assets was $351.6 Mil.
Property, Plant and Equipment(Net PPE) was $92.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.8 Mil.
Selling, General, & Admin. Expense(SGA) was $91.9 Mil.
Total Current Liabilities was $91.6 Mil.
Long-Term Debt & Capital Lease Obligation was $102.1 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(96.451 / 545.338) / (108.26 / 530.71)
=0.176865 / 0.203991
=0.867

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(105.414 / 530.71) / (114.039 / 545.338)
=0.198628 / 0.209116
=0.9498

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (191.469 + 88.921) / 333.261) / (1 - (203.773 + 92.718) / 351.568)
=0.158647 / 0.156661
=1.0127

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=545.338 / 530.71
=1.0276

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(15.839 / (15.839 + 92.718)) / (14.61 / (14.61 + 88.921))
=0.145905 / 0.141117
=1.0339

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(99.052 / 545.338) / (91.916 / 530.71)
=0.181634 / 0.173194
=1.0487

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((97.503 + 80.429) / 333.261) / ((102.072 + 91.641) / 351.568)
=0.533912 / 0.550997
=0.969

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(7.368 - 2.568 - 13.891) / 333.261
=-0.027279

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

L.B. Foster Co has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.


L.B. Foster Co Beneish M-Score Related Terms

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L.B. Foster Co Business Description

Traded in Other Exchanges
Address
415 Holiday Drive, Suite 100, Pittsburgh, PA, USA, 15220
L.B. Foster Co is a us-based firm engaged in the manufacturing, fabrication, and distribution of products and services, especially for the rail, construction, energy, and utility industries. The company operates its business through three segments: Rail Technologies and Services; Precast Concrete Products and Steel Products and Measurement. Its principal business activity involves providing new and used rail, trackwork, and accessories, producing concrete railroad ties, insulated rail joints, power rail, track fasteners, cover boards, and sales of sells and rents steel sheet piling, H-bearing pile, and other piling products for foundation and earth retention requirements. It generates the majority of its revenues from the Rail Technologies and Services segment.
Executives
Raymond T Betler director 1001 AIR BRAKE AVENUE, WILMERDING PA 15148
William M Thalman officer: Senior VP & CFO C/O LB FOSTER COMPANY, 415 HOLIDAY DRIVE, PITTSBURGH PA 15220
Brian Hunter Friedman officer: VP, Steel Prods. & Measurement 415 HOLIDAY DRIVE, SUITE 100, PITTSBURGH PA 15220
Sean M Reilly officer: Controller TOLLGRADE COMMUNICATIONS INC, 493 NIXON RD., CHESWICK PA 15024
Janet Lee director 2600 ANSYS DRIVE, CANONSBURG PA 15317
Diane B Owen director
Dirk Junge director 165 TOWNSHIP LINE RD, JENKINTOWN PA 19046
John E Kunz director 522 N. MACEWEN DRIVE, OSPREY FL 34229
Bruce Ernest Thompson director C/O L.B. FOSTER COMPANY, 415 HOLIDAY DRIVE, SUITE 100, PITTSBURGH PA 15220
Alexander B Jones other: See Explanation of Responses 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
Aron R. English 10 percent owner 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
22nw Gp, Inc. 10 percent owner 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
Bryson Hirai-hadley other: See Explanation of Responses 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
22nw Fund, Lp 10 percent owner 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
22nw, Lp 10 percent owner 590 1ST AVE S, UNIT C1, SEATTLE WA 98104