Overall RAIL gets a fundamental rating of 4 out of 10. We evaluated RAIL against 132 industry peers in the Machinery industry. There are concerns on the financial health of RAIL while its profitability can be described as average. RAIL scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

RAIL had positive earnings in the past year.
In the past year RAIL had a positive cash flow from operations.
RAIL had negative earnings in each of the past 5 years.
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

RAIL has a better Return On Assets (25.56%) than 100.00% of its industry peers.
RAIL has a better Return On Invested Capital (14.35%) than 85.61% of its industry peers.

		Industry Rank	Sector Rank
ROA	25.56%
ROE	N/A
ROIC	14.35%

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's Profit Margin of 16.97% is amongst the best of the industry. RAIL outperforms 91.67% of its industry peers.
RAIL's Operating Margin of 7.36% is in line compared to the rest of the industry. RAIL outperforms 46.97% of its industry peers.
The Gross Margin of RAIL (15.09%) is worse than 81.06% of its industry peers.
In the last couple of years the Gross Margin of RAIL has grown nicely.

		Industry Rank	Sector Rank
OM	7.36%
PM (TTM)	16.97%
GM	15.09%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y28.39%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RAIL is still creating some value.
The number of shares outstanding for RAIL has been increased compared to 1 year ago.
The number of shares outstanding for RAIL has been increased compared to 5 years ago.
Compared to 1 year ago, RAIL has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 1.82 indicates that RAIL is not a great score, but indicates only limited risk for bankruptcy at the moment.
RAIL's Altman-Z score of 1.82 is on the low side compared to the rest of the industry. RAIL is outperformed by 71.97% of its industry peers.
The Debt to FCF ratio of RAIL is 5.51, which is a neutral value as it means it would take RAIL, 5.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.51, RAIL is in line with its industry, outperforming 51.52% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	5.51
Altman-Z	1.82

ROIC/WACC1.62

WACC8.88%

2.3 Liquidity

RAIL has a Current Ratio of 1.66. This is a normal value and indicates that RAIL is financially healthy and should not expect problems in meeting its short term obligations.
RAIL has a worse Current ratio (1.66) than 65.91% of its industry peers.
A Quick Ratio of 0.88 indicates that RAIL may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, RAIL is not doing good in the industry: 69.70% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.66
Quick Ratio	0.88

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

RAIL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 662.50%, which is quite impressive.
The Revenue has decreased by -6.42% in the past 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)662.5%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%200%

Revenue 1Y (TTM)-6.42%

Revenue growth 3Y40.18%

Revenue growth 5Y19.45%

Sales Q2Q%41.73%

3.2 Future

Based on estimates for the next years, RAIL will show a very strong growth in Earnings Per Share. The EPS will grow by 25.75% on average per year.
Based on estimates for the next years, RAIL will show a quite strong growth in Revenue. The Revenue will grow by 8.26% on average per year.

EPS Next Y55.83%

EPS Next 2Y43.82%

EPS Next 3Y37.62%

EPS Next 5Y25.75%

Revenue Next Year-9.34%

Revenue Next 2Y3.58%

Revenue Next 3Y6.71%

Revenue Next 5Y8.26%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 18.92, RAIL is valued on the expensive side.
RAIL's Price/Earnings ratio is a bit cheaper when compared to the industry. RAIL is cheaper than 77.27% of the companies in the same industry.
RAIL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
With a Price/Forward Earnings ratio of 15.50, RAIL is valued correctly.
Based on the Price/Forward Earnings ratio, RAIL is valued cheaply inside the industry as 80.30% of the companies are valued more expensively.
RAIL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.

		Industry Rank	Sector Rank
PE	18.92
Fwd PE	15.5

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RAIL is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
94.70% 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	8.09
EV/EBITDA	7.22

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.
RAIL's earnings are expected to grow with 37.62% in the coming years. This may justify a more expensive valuation.