FreightCar America, Inc. Fundamental Analysis (NASDAQ: RAIL)
FreightCar America, Inc. (NASDAQ: RAIL) shows moderate financial fundamentals with a PE ratio of -18.52, profit margin of -2.69%, and ROE of 21.95%. The company generates $0.5B in annual revenue with weak year-over-year growth of -10.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 17.4/100 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
WeakRAIL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRAIL trades at attractive valuation levels.
Growth Score
WeakRAIL faces weak or negative growth trends.
Financial Health Score
ModerateRAIL shows balanced financial health with some risks.
Profitability Score
ModerateRAIL maintains healthy but balanced margins.
Key Financial Metrics
Is RAIL Expensive or Cheap?
P/E Ratio
RAIL trades at -18.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RAIL's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values FreightCar America, Inc. at 6.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.60 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 $-2.69 as profit after all expenses.
Operating Margin
Core operations generate 3.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.95 in profit for every $100 of shareholder equity.
ROA
FreightCar America, Inc. generates $-4.52 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 $21.78M, signaling weaker underlying cash strength.
Free Cash Flow
FreightCar America, Inc. produces free cash flow of $18.37M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.56 in free cash annually.
FCF Yield
RAIL converts 7.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-18.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.003
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
-0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How RAIL Stacks Against Its Sector Peers
| Metric | RAIL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -18.52 | 29.88 | Better (Cheaper) |
| ROE | 21.95% | 1106.00% | Weak |
| Net Margin | -2.69% | -24767.00% (disorted) | Weak |
| Debt/Equity | 4.00 | 0.94 | Weak (High Leverage) |
| Current Ratio | 1.81 | 21.64 | Neutral |
| ROA | -4.52% | -1320894.00% (disorted) | Weak |
RAIL outperforms its industry in 1 out of 6 key metrics, 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
95.10%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
119.06%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
124.93%
Industry Style: Cyclical, Value, Infrastructure
High Growth