RAIL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. RAIL has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on RAIL.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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.
Looking at the Return On Invested Capital, with a value of 14.35%, RAIL belongs to the top of the industry, outperforming 85.61% of the companies in the same industry.

		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 has a Profit Margin of 16.97%. This is amongst the best in the industry. RAIL outperforms 92.42% of its industry peers.
RAIL has a Operating Margin (7.36%) which is in line with its industry peers.
With a Gross Margin value of 15.09%, RAIL is not doing good in the industry: 81.06% 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	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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RAIL is 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

Based on the Altman-Z score of 1.81, we must say that RAIL is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.81, RAIL is not doing good in the industry: 70.45% of the companies in the same industry are doing better.
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.
RAIL has a Debt to FCF ratio (5.51) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	5.51
Altman-Z	1.81

ROIC/WACC1.61

WACC8.89%

2.3 Liquidity

A Current Ratio of 1.66 indicates that RAIL should not have too much problems paying its short term obligations.
RAIL's Current ratio of 1.66 is on the low side compared to the rest of the industry. RAIL is outperformed by 65.91% of its industry peers.
A Quick Ratio of 0.88 indicates that RAIL may have some problems paying its short term obligations.
The Quick ratio of RAIL (0.88) is worse than 69.70% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.66
Quick Ratio	0.88

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.
Looking at the last year, RAIL shows a decrease in Revenue. The Revenue has decreased by -6.42% in the last year.
Measured over the past years, RAIL shows a quite strong growth in Revenue. The Revenue has been growing by 19.45% on average per year.

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

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.87 indicates a rather expensive valuation of RAIL.
Based on the Price/Earnings ratio, RAIL is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RAIL to the average of the S&P500 Index (28.30), we can say RAIL is valued slightly cheaper.
RAIL is valuated correctly with a Price/Forward Earnings ratio of 15.46.
81.82% of the companies in the same industry are more expensive than RAIL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RAIL to the average of the S&P500 Index (25.57), we can say RAIL is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	18.87
Fwd PE	15.46

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RAIL indicates a rather cheap valuation: RAIL is cheaper than 94.70% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RAIL is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	8.07
EV/EBITDA	7.05

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.