How much will Foster L owe in September?

FSTR
 Stock
  

USD 9.98  0.18  1.84%   

Foster L B is scheduled to announce its earnings today. Foster L Invested Capital Average is relatively stable at the moment as compared to the past year. Foster L reported last year Invested Capital Average of 249.94 Million. As of 08/09/2022, Market Capitalization is likely to grow to about 191.8 M, while Free Cash Flow is likely to drop (5.8 M). As many of us are excited about industrials space, it is fair to sum up Foster L B as a unique alternative.
Published over a month ago
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This firm currently holds 49.98 M in liabilities with Debt to Equity (D/E) ratio of 0.28, which may suggest Foster L is not taking enough advantage from borrowing. The company has a current ratio of 2.04, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Foster L until it has trouble settling it off, either with new capital or with free cash flow. So, Foster L's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Foster L B sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Foster to invest in growth at high rates of return. When we think about Foster L's use of debt, we should always consider it together with cash and equity.
Foster L financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Foster L, including all of Foster L's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Foster L assets, the company is considered highly leveraged. Understanding the composition and structure of overall Foster L debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

How important is Foster L's Liquidity

Foster L financial leverage refers to using borrowed capital as a funding source to finance Foster L B ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Foster L financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Foster L's total debt and its cash.

How does Foster utilize its cash?

To perform a cash flow analysis of Foster L, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Foster L is receiving and how much cash it distributes out in a given period. The Foster L cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Detailed Perspective On Foster L

Foster L B reported the previous year's revenue of 496.33 M. Net Income was 3.25 M with profit before overhead, payroll, taxes, and interest of 86.3 M.

Liabilities Breakdown

100.7 M
Current Liabilities
94.7 M
Long-Term Liabilities
Total Liabilities195.34 Million
Current Liabilities100.67 Million
Long-Term Liabilities94.67 Million
Tax Liabilities5.39 Million

Foster L latest price fall can leaving retail investors with little time to react

The value at risk is down to -3.72 as of today.
As of the 9th of August, Foster L shows the Coefficient Of Variation of 1435.24, mean deviation of 1.44, and Downside Deviation of 2.07. Foster L B technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Foster L B, which can be compared to its rivals. Please confirm Foster L B variance and potential upside to decide if Foster L B is priced favorably, providing market reflects its regular price of 14.9 per share. Given that Foster L has jensen alpha of 0.1325, we urge you to verify Foster L B's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While many other companies under the railroads industry are still a bit expensive, Foster L may offer a potential longer-term growth to retail investors. While some retail investors may not share our view, we believe it may be a good time to increase your existing holdings in Foster as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Foster L.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Foster L B. Please refer to our Terms of Use for any information regarding our disclosure principles.

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