FreightCar America, Inc.
FreightCar America, Inc. Fundamental Analysis
FreightCar America, Inc. (RAIL) shows moderate financial fundamentals with a PE ratio of 7.00, profit margin of 7.61%, and ROE of -40.20%. The company generates $0.5B in annual revenue with strong year-over-year growth of 56.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RAIL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRAIL demonstrates superior asset utilization.
Valuation Score
ExcellentRAIL trades at attractive valuation levels.
Growth Score
ModerateRAIL shows steady but slowing expansion.
Financial Health Score
ExcellentRAIL maintains a strong and stable balance sheet.
Profitability Score
WeakRAIL struggles to sustain strong margins.
Key Financial Metrics
Is RAIL Expensive or Cheap?
P/E Ratio
RAIL trades at 7.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RAIL's PEG of -0.13 indicates potential undervaluation.
Price to Book
The market values FreightCar America, Inc. at -2.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.29 times EBITDA. This signals the market has high growth expectations.
How Well Does RAIL Make Money?
Net Profit Margin
For every $100 in sales, FreightCar America, Inc. keeps $7.61 as profit after all expenses.
Operating Margin
Core operations generate 6.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-40.20 in profit for every $100 of shareholder equity.
ROA
FreightCar America, Inc. generates $13.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FreightCar America, Inc. generates limited operating cash flow of $34.69M, signaling weaker underlying cash strength.
Free Cash Flow
FreightCar America, Inc. produces free cash flow of $31.33M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.98 in free cash annually.
FCF Yield
RAIL converts 19.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.40
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How RAIL Stacks Against Its Sector Peers
| Metric | RAIL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.00 | 26.05 | Better (Cheaper) |
| ROE | -40.20% | 1258.00% | Weak |
| Net Margin | 7.61% | -41722.00% (disorted) | Weak |
| Debt/Equity | -1.42 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.87 | 10.40 | Neutral |
| ROA | 13.14% | -1500126.00% (disorted) | Strong |
RAIL outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FreightCar America, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.21%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
59.49%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
195.17%
Industry Style: Cyclical, Value, Infrastructure
High Growth