FREIGHTCAR AMERICA INC (RAIL)
US3570231007 - Common Stock
RAIL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. RAIL scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RAIL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
RAIL had negative earnings in the past year.
RAIL had a positive operating cash flow in the past year.
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
The Return On Assets of RAIL (-1.47%) is worse than 70.77% of its industry peers.
Looking at the Return On Equity, with a value of -8.74%, RAIL is doing worse than 73.08% of the companies in the same industry.
RAIL has a better Return On Invested Capital (11.30%) than 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.47% | ||
| ROE | -8.74% | ||
| ROIC | 11.3% |
ROA(3y)-16.38%
ROA(5y)-25.2%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RAIL has a Operating Margin of 4.00%. This is in the lower half of the industry: RAIL underperforms 63.85% of its industry peers.
Looking at the Gross Margin, with a value of 10.29%, RAIL is doing worse than 90.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4% | ||
| PM (TTM) | N/A | ||
| GM | 10.29% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
RAIL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RAIL has been increased compared to 1 year ago.
RAIL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RAIL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.79 indicates that RAIL is not a great score, but indicates only limited risk for bankruptcy at the moment.
RAIL has a Altman-Z score of 2.79. This is comparable to the rest of the industry: RAIL outperforms 47.69% of its industry peers.
The Debt to FCF ratio of RAIL is 0.88, which is an excellent value as it means it would take RAIL, only 0.88 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.88, RAIL belongs to the best of the industry, outperforming 91.54% of the companies in the same industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that RAIL has dependencies on debt financing.
The Debt to Equity ratio of RAIL (1.31) is worse than 86.92% of its industry peers.
Even though the debt/equity ratio score it not favorable for RAIL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.45
WACC7.77%
2.3 Liquidity
RAIL has a Current Ratio of 1.87. This is a normal value and indicates that RAIL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RAIL (1.87) is worse than 61.54% of its industry peers.
A Quick Ratio of 0.92 indicates that RAIL may have some problems paying its short term obligations.
RAIL has a Quick ratio of 0.92. This is in the lower half of the industry: RAIL underperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
RAIL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.28%, which is quite impressive.
The Revenue has grown by 29.32% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 2.50% on average over the past years.
EPS 1Y (TTM)80.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)29.32%
Revenue growth 3Y48.93%
Revenue growth 5Y2.5%
Sales Q2Q%66.39%
3.2 Future
The Earnings Per Share is expected to grow by 49.65% on average over the next years. This is a very strong growth
Based on estimates for the next years, RAIL will show a very strong growth in Revenue. The Revenue will grow by 21.48% on average per year.
EPS Next Y163.75%
EPS Next 2Y78.84%
EPS Next 3Y49.65%
EPS Next 5YN/A
Revenue Next Year65.25%
Revenue Next 2Y30.89%
Revenue Next 3Y21.48%
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
RAIL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
RAIL is valuated rather expensively with a Price/Forward Earnings ratio of 22.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RAIL is on the same level as its industry peers.
RAIL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RAIL is valued cheaper than 82.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RAIL is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.95 | ||
| EV/EBITDA | 8.45 |
4.3 Compensation for Growth
The 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 49.65% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y78.84%
EPS Next 3Y49.65%
5. Dividend
5.1 Amount
RAIL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FREIGHTCAR AMERICA INC
NASDAQ:RAIL (9/17/2024, 8:00:02 PM)
Premarket: 11.23 +0.28 (+2.56%)10.95
+0.67 (+6.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap206.63M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.47% | ||
| ROE | -8.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4% | ||
| PM (TTM) | N/A | ||
| GM | 10.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)80.28%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y163.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.32%
Revenue growth 3Y48.93%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y