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FSTR (L.B. Foster Co) Altman Z-Score : 3.38 (As of Oct. 31, 2024)


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What is L.B. Foster Co Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 3.41 is strong.

L.B. Foster Co has a Altman Z-Score of 3.38, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

FSTR' s Altman Z-Score Range Over the Past 10 Years
Min: 0.96   Med: 2.86   Max: 5.48
Current: 3.41

During the past 13 years, L.B. Foster Co's highest Altman Z-Score was 5.48. The lowest was 0.96. And the median was 2.86.


L.B. Foster Co Altman Z-Score Historical Data

The historical data trend for L.B. Foster Co's Altman Z-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 Altman Z-Score Chart

L.B. Foster Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.15 2.94 3.14 2.39 3.47

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
Altman Z-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 2.81 3.13 3.47 3.72 3.47

Competitive Comparison of L.B. Foster Co's Altman Z-Score

For the Railroads subindustry, L.B. Foster Co's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score Distribution in the Transportation Industry

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

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



L.B. Foster Co Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

L.B. Foster Co's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.3332+1.4*0.3958+3.3*0.0379+0.6*1.1121+1.0*1.6364
=3.38

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2024:
Total Assets was $333.3 Mil.
Total Current Assets was $191.5 Mil.
Total Current Liabilities was $80.4 Mil.
Retained Earnings was $131.9 Mil.
Pre-Tax Income was 3.163 + 4.694 + -0.726 + 0.326 = $7.5 Mil.
Interest Expense was -1.493 + -1.125 + -1.124 + -1.442 = $-5.2 Mil.
Revenue was 140.796 + 124.32 + 134.877 + 145.345 = $545.3 Mil.
Market Cap (Today) was $206.4 Mil.
Total Liabilities was $185.6 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(191.469 - 80.429)/333.261
=0.3332

X2=Retained Earnings/Total Assets
=131.916/333.261
=0.3958

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(7.457 - -5.184)/333.261
=0.0379

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=206.417/185.609
=1.1121

X5=Revenue/Total Assets
=545.338/333.261
=1.6364

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

L.B. Foster Co has a Altman Z-Score of 3.38 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


L.B. Foster Co  (NAS:FSTR) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


L.B. Foster Co Altman Z-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