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FSTR (L.B. Foster Co) Operating Margin % : 3.20% (As of Jun. 2024)


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What is L.B. Foster Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. L.B. Foster Co's Operating Income for the three months ended in Jun. 2024 was $4.5 Mil. L.B. Foster Co's Revenue for the three months ended in Jun. 2024 was $140.8 Mil. Therefore, L.B. Foster Co's Operating Margin % for the quarter that ended in Jun. 2024 was 3.20%.

Warning Sign:

L.B. Foster Co operating margin has been in a 5-year decline. The average rate of decline per year is -36.1%.

The historical rank and industry rank for L.B. Foster Co's Operating Margin % or its related term are showing as below:

FSTR' s Operating Margin % Range Over the Past 10 Years
Min: -1.07   Med: 3.23   Max: 6.11
Current: 1.85


FSTR's Operating Margin % is ranked worse than
78.8% of 967 companies
in the Transportation industry
Industry Median: 7.68 vs FSTR: 1.85

L.B. Foster Co's 5-Year Average Operating Margin % Growth Rate was -36.10% per year.

L.B. Foster Co's Operating Income for the three months ended in Jun. 2024 was $4.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $10.1 Mil.

Warning Sign:

L.B. Foster Co has recorded a loss in operating income at least once over the past 3 years.


L.B. Foster Co Operating Margin % Historical Data

The historical data trend for L.B. Foster Co's Operating Margin % 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 Operating Margin % Chart

L.B. Foster Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.19 3.14 0.87 0.16 1.86

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
Operating Margin % 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 4.29 1.85 0.45 1.84 3.20

Competitive Comparison of L.B. Foster Co's Operating Margin %

For the Railroads subindustry, L.B. Foster Co's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, L.B. Foster Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where L.B. Foster Co's Operating Margin % falls into.



L.B. Foster Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

L.B. Foster Co's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=10.138 / 543.744
=1.86 %

L.B. Foster Co's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=4.504 / 140.796
=3.20 %

* 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.


L.B. Foster Co  (NAS:FSTR) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


L.B. Foster Co Operating Margin % Related Terms

Thank you for viewing the detailed overview of L.B. Foster Co's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


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