FREIGHTCAR AMERICA INC (RAIL) Stock Fundamental Analysis
NASDAQ:RAIL - Nasdaq - US3570231007 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to RAIL. RAIL was compared to 128 industry peers in the Machinery industry. RAIL may be in some trouble as it scores bad on both profitability and health. RAIL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RAIL was profitable.
In the past year RAIL had a positive cash flow from operations.
In the past 5 years RAIL always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: RAIL reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of -5.51%, RAIL is not doing good in the industry: 75.78% of the companies in the same industry are doing better.
With an excellent Return On Invested Capital value of 18.91%, RAIL belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.51% | ||
| ROE | N/A | ||
| ROIC | 18.91% |
ROA(3y)-20.78%
ROA(5y)-25.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RAIL has a Operating Margin (6.89%) which is in line with its industry peers.
With a Gross Margin value of 14.16%, RAIL is not doing good in the industry: 82.81% of the companies in the same industry are doing better.
RAIL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.89% | ||
| PM (TTM) | N/A | ||
| GM | 14.16% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y28.39%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RAIL is creating value.
Compared to 1 year ago, RAIL has more shares outstanding
The number of shares outstanding for RAIL has been increased compared to 5 years ago.
The debt/assets ratio for RAIL is higher compared to a year ago.
2.2 Solvency
RAIL has an Altman-Z score of 2.18. This is not the best score and indicates that RAIL is in the grey zone with still only limited risk for bankruptcy at the moment.
RAIL has a Altman-Z score of 2.18. This is in the lower half of the industry: RAIL underperforms 66.41% of its industry peers.
RAIL has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.98, RAIL is in the better half of the industry, outperforming 77.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 2.18 |
ROIC/WACC2.07
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.60 indicates that RAIL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.60, RAIL is doing worse than 71.09% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that RAIL may have some problems paying its short term obligations.
RAIL's Quick ratio of 0.87 is on the low side compared to the rest of the industry. RAIL is outperformed by 69.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 329.41% over the past year.
Looking at the last year, RAIL shows a quite strong growth in Revenue. The Revenue has grown by 12.89% in the last year.
RAIL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.45% yearly.
EPS 1Y (TTM)329.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)12.89%
Revenue growth 3Y40.18%
Revenue growth 5Y19.45%
Sales Q2Q%-40.21%
3.2 Future
RAIL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.12% yearly.
Based on estimates for the next years, RAIL will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y45.44%
EPS Next 2Y42.5%
EPS Next 3Y23.82%
EPS Next 5Y21.12%
Revenue Next Year-1.42%
Revenue Next 2Y2.15%
Revenue Next 3Y3.65%
Revenue Next 5Y4.71%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.56, which means the current valuation is very expensive for RAIL.
Compared to the rest of the industry, the Price/Earnings ratio of RAIL indicates a slightly more expensive valuation: RAIL is more expensive than 61.72% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RAIL to the average of the S&P500 Index (27.30), we can say RAIL is valued inline with the index average.
A Price/Forward Earnings ratio of 16.31 indicates a correct valuation of RAIL.
67.97% of the companies in the same industry are more expensive than RAIL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, RAIL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.56 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RAIL is valued cheaply inside the industry as 83.59% of the companies are valued more expensively.
99.22% of the companies in the same industry are more expensive than RAIL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.89 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
RAIL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RAIL's earnings are expected to grow with 23.82% in the coming years.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y42.5%
EPS Next 3Y23.82%
5. Dividend
5.1 Amount
RAIL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.92
-0.1 (-0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners43.66%
Inst Owner Change0%
Ins Owners15.33%
Ins Owner Change3.07%
Market Cap226.96M
Analysts85
Price Target12.07 (1.26%)
Short Float %2.29%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.51
Dividend Growth(5Y)44.41%
DP-201.94%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)159.4%
Min EPS beat(2)-38.73%
Max EPS beat(2)357.52%
EPS beat(4)1
Avg EPS beat(4)78.72%
Min EPS beat(4)-38.73%
Max EPS beat(4)357.52%
EPS beat(8)2
Avg EPS beat(8)-56.15%
EPS beat(12)4
Avg EPS beat(12)-51.09%
EPS beat(16)5
Avg EPS beat(16)-59.98%
Revenue beat(2)0
Avg Revenue beat(2)-10.35%
Min Revenue beat(2)-11.2%
Max Revenue beat(2)-9.51%
Revenue beat(4)1
Avg Revenue beat(4)-6.61%
Min Revenue beat(4)-19.44%
Max Revenue beat(4)13.71%
Revenue beat(8)2
Avg Revenue beat(8)-9.83%
Revenue beat(12)3
Avg Revenue beat(12)-10.91%
Revenue beat(16)5
Avg Revenue beat(16)-7.03%
PT rev (1m)-16.96%
PT rev (3m)-16.96%
EPS NQ rev (1m)-56%
EPS NQ rev (3m)-64.52%
EPS NY rev (1m)-13.73%
EPS NY rev (3m)-13.73%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-22.9%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.56 | ||
| Fwd PE | 16.31 | ||
| P/S | 0.46 | ||
| P/FCF | 2.89 | ||
| P/OCF | 2.73 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.28 |
EPS(TTM)0.39
EY3.27%
EPS(NY)0.73
Fwd EY6.13%
FCF(TTM)4.13
FCFY34.66%
OCF(TTM)4.36
OCFY36.59%
SpS25.98
BVpS-5.12
TBVpS-5.12
PEG (NY)0.67
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.51% | ||
| ROE | N/A | ||
| ROCE | 23.94% | ||
| ROIC | 18.91% | ||
| ROICexc | 30.49% | ||
| ROICexgc | 30.49% | ||
| OM | 6.89% | ||
| PM (TTM) | N/A | ||
| GM | 14.16% | ||
| FCFM | 15.9% |
ROA(3y)-20.78%
ROA(5y)-25.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y28.39%
GM growth 5YN/A
F-Score6
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 3.79 | ||
| Cap/Depr | 74.76% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 7.08 | ||
| Cash Conversion | 207.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.18 |
F-Score6
WACC9.13%
ROIC/WACC2.07
Cap/Depr(3y)184.51%
Cap/Depr(5y)142.71%
Cap/Sales(3y)2.2%
Cap/Sales(5y)3.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)329.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
EPS Next Y45.44%
EPS Next 2Y42.5%
EPS Next 3Y23.82%
EPS Next 5Y21.12%
Revenue 1Y (TTM)12.89%
Revenue growth 3Y40.18%
Revenue growth 5Y19.45%
Sales Q2Q%-40.21%
Revenue Next Year-1.42%
Revenue Next 2Y2.15%
Revenue Next 3Y3.65%
Revenue Next 5Y4.71%
EBIT growth 1Y99.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year38.48%
EBIT Next 3Y18.16%
EBIT Next 5Y15.4%
FCF growth 1Y724.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2285.5%
OCF growth 3YN/A
OCF growth 5YN/A