American Railcar Industries, Inc.
American Railcar Industries, Inc. Fundamental Analysis
American Railcar Industries, Inc. (ARII) shows strong financial fundamentals with a PE ratio of 9.39, profit margin of 29.82%, and ROE of 23.43%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ARII's fundamental strength across five key dimensions:
Efficiency Score
WeakARII struggles to generate sufficient returns from assets.
Valuation Score
ExcellentARII trades at attractive valuation levels.
Growth Score
WeakARII faces weak or negative growth trends.
Financial Health Score
ExcellentARII maintains a strong and stable balance sheet.
Profitability Score
ModerateARII maintains healthy but balanced margins.
Key Financial Metrics
Is ARII Expensive or Cheap?
P/E Ratio
ARII trades at 9.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ARII's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values American Railcar Industries, Inc. at 2.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.06 times EBITDA. This is generally considered low.
How Well Does ARII Make Money?
Net Profit Margin
For every $100 in sales, American Railcar Industries, Inc. keeps $29.82 as profit after all expenses.
Operating Margin
Core operations generate 16.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.43 in profit for every $100 of shareholder equity.
ROA
American Railcar Industries, Inc. generates $9.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $-2.06 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ARII Stacks Against Its Sector Peers
| Metric | ARII Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.39 | 25.86 | Better (Cheaper) |
| ROE | 23.43% | 1270.00% | Weak |
| Net Margin | 29.82% | -33745.00% (disorted) | Strong |
| Debt/Equity | 0.82 | 0.74 | Neutral |
| Current Ratio | 3.32 | 10.46 | Strong Liquidity |
| ROA | 9.65% | -1496704.00% (disorted) | Weak |
ARII outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Railcar Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure