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FSTR (L.B. Foster Co) ROE % : 7.81% (As of Jun. 2024)


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What is L.B. Foster Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. L.B. Foster Co's annualized net income for the quarter that ended in Jun. 2024 was $11.4 Mil. L.B. Foster Co's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $145.8 Mil. Therefore, L.B. Foster Co's annualized ROE % for the quarter that ended in Jun. 2024 was 7.81%.

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

FSTR' s ROE % Range Over the Past 10 Years
Min: -68.09   Med: 1.53   Max: 29.16
Current: 5.13

During the past 13 years, L.B. Foster Co's highest ROE % was 29.16%. The lowest was -68.09%. And the median was 1.53%.

FSTR's ROE % is ranked worse than
65.54% of 949 companies
in the Transportation industry
Industry Median: 8.78 vs FSTR: 5.13

L.B. Foster Co ROE % Historical Data

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

L.B. Foster Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.16 4.37 2.01 -28.45 1.05

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
ROE % 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 10.13 1.45 -1.21 12.38 7.81

Competitive Comparison of L.B. Foster Co's ROE %

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

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

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



L.B. Foster Co ROE % Calculation

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

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=1.464/( (137.178+142.111)/ 2 )
=1.464/139.6445
=1.05 %

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

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=11.388/( (144.601+147.078)/ 2 )
=11.388/145.8395
=7.81 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.


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

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=11.388/145.8395
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(11.388 / 563.184)*(563.184 / 329.831)*(329.831 / 145.8395)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.02 %*1.7075*2.2616
=ROA %*Equity Multiplier
=3.45 %*2.2616
=7.81 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=11.388/145.8395
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (11.388 / 12.652) * (12.652 / 18.016) * (18.016 / 563.184) * (563.184 / 329.831) * (329.831 / 145.8395)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9001 * 0.7023 * 3.2 % * 1.7075 * 2.2616
=7.81 %

Note: The net income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


L.B. Foster Co ROE % Related Terms

Thank you for viewing the detailed overview of L.B. Foster Co's ROE % 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