Stock fact sheet · data as of
L.B. Foster Company (FSTR): fair value, margin of safety and Wheel Score
Industrials · Railroads · United States · Blend
Is FSTR undervalued?
FSTR has a margin of safety of 41%: the stock closed at 34.30 on 16 Oct 2026 against a GLS average fair value of 58.10. 5 of the 8 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between EPV (12.23) and Payback Time (108.94). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files FSTR under Blend.
Nine valuation models for FSTR
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 56.38 | +64% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 20.64 | -40% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 62.95 | +84% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 27.51 | -20% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 67.37 | +96% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 108.81 | +217% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 108.94 | +218% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 12.23 | -64% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.1687 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 21.00 | -39% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
L.B. Foster Company scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 3.0/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 3.1%, ROE 4.3%, ROA 2.3% - with debt at 0.38 times equity and a free-cash-flow yield of 11.5%.
L.B. Foster Company pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Product 85%, Service 16% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 3.1% |
|---|---|---|---|
| GLS Moat | 3.0 / 10 | ROE | 4.3% |
| Debt / equity | 0.38 | ROA | 2.3% |
| Free-cash-flow yield | 11.5% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 74: Good
With a Wheel Score of 74 - the Good band - L.B. Foster Company clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 18/20, Moat 5/15, Premium 20/20, Stability 6/20; Stability (6/20) scores lowest.
Implied volatility is 59% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 128 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 44k shares a day on a market cap of $361M, with a beta of 1.14; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 41% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 5 / 15 | moat 3.0/10 | |
| Premium | 20 / 20 | implied volatility 59% | |
| Stability | 6 / 20 | 44k shares/day, $361M cap, beta 1.14 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Nov 2026 (before the open), 17 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Railroads
The 10 companies below are the closest to L.B. Foster Company by market cap within the Railroads industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| RAIL FreightCar America, Inc. | 6.02 | - | - | 42Weak | $197M |
| GBX The Greenbrier Companies, Inc. | 39.27 | 98.48 | +60% | 73Good | $1.2B |
| TRN Trinity Industries, Inc. | 26.13 | 75.42 | +65% | 79Good | $2.1B |
| RVSN Rail Vision Ltd. | 2.92 | - | - | 31No options | $5M |
| WAB Westinghouse Air Brake Technologies Corporation | 286.52 | 192.49 | -49% | 56Fair | $48.4B |
| NSC Norfolk Southern Corporation | 324.83 | 185.26 | -75% | 54Fair | $73.0B |
| CNI Canadian National Railway Company | 120.74 | 83.94 | -44% | 55Fair | $73.1B |
| CP Canadian Pacific Kansas City Ltd. | 86.91 | 57.72 | -51% | 49Weak | $76.4B |
| CSX CSX Corporation | 48.69 | 27.03 | -80% | 66Good | $90.2B |
| UNP Union Pacific Corporation | 286.43 | 179.35 | -60% | 62Fair | $170.2B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about FSTR
Is FSTR undervalued right now?
By the GLS models, yes: at 34.30 the stock is 41% below the average fair value of 58.10 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of FSTR and what does it mean?
FSTR scores 74 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for FSTR?
58.10 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does L.B. Foster Company report earnings next?
The next earnings report is due on 2 Nov 2026 (before the open), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does FSTR have listed options, and how liquid are they?
Yes. The nightly snapshot found 104 listed contracts with 128 open interest across all expiries and implied volatility of 59% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.