FREIGHTCAR AMERICA INC (RAIL) Fundamental Analysis & Valuation
NASDAQ:RAIL • US3570231007
13.56 USD
-0.79 (-5.51%)
At close: Mar 3, 2026
13.2 USD
-0.36 (-2.65%)
After Hours: 3/3/2026, 8:00:01 PM
This RAIL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, RAIL scores 4 out of 10 in our fundamental rating. RAIL was compared to 130 industry peers in the Machinery industry. While RAIL is still in line with the averages on profitability rating, there are concerns on its financial health. RAIL is not valued too expensively and it also shows a decent growth rate.
1. RAIL Profitability Analysis
1.1 Basic Checks
- In the past year RAIL was profitable.
- 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
- RAIL has a better Return On Assets (25.56%) than 100.00% of its industry peers.
- RAIL has a Return On Invested Capital of 14.35%. This is amongst the best in the industry. RAIL outperforms 87.69% 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 has a Profit Margin of 16.97%. This is amongst the best in the industry. RAIL outperforms 93.08% of its industry peers.
- With a Operating Margin value of 7.36%, RAIL perfoms like the industry average, outperforming 46.92% of the companies in the same industry.
- RAIL has a Gross Margin of 15.09%. This is amonst the worse of the industry: RAIL underperforms 81.54% 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
2. RAIL Health Analysis
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.
- 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.
- RAIL has a worse debt/assets ratio than last year.
2.2 Solvency
- RAIL has an Altman-Z score of 1.88. 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 1.88. This is in the lower half of the industry: RAIL underperforms 62.31% of its industry peers.
- RAIL has a debt to FCF ratio of 5.51. This is a neutral value as RAIL would need 5.51 years to pay back of 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 | 1.88 |
ROIC/WACC1.71
WACC8.41%
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.
- The Current ratio of RAIL (1.66) is worse than 67.69% of its industry peers.
- A Quick Ratio of 0.88 indicates that RAIL may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.88, RAIL is doing worse than 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.88 |
3. RAIL Growth Analysis
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.
- The Revenue has been growing by 19.45% on average over the past years. This is quite good.
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.
- RAIL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.26% yearly.
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.
4. RAIL Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.23, which indicates a rather expensive current valuation of RAIL.
- Based on the Price/Earnings ratio, RAIL is valued a bit cheaper than 66.92% of the companies in the same industry.
- RAIL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 18.21, the valuation of RAIL can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RAIL indicates a somewhat cheap valuation: RAIL is cheaper than 70.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.95, RAIL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.23 | ||
| Fwd PE | 18.21 |
4.2 Price Multiples
- RAIL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RAIL is cheaper than 93.08% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RAIL is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.5 | ||
| EV/EBITDA | 8.23 |
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 37.62% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y43.82%
EPS Next 3Y37.62%
5. RAIL Dividend Analysis
5.1 Amount
- No dividends for RAIL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
RAIL Fundamentals: All Metrics, Ratios and Statistics
13.56
-0.79 (-5.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-10 2025-11-10/bmo
Earnings (Next)03-09 2026-03-09/amc
Inst Owners40.4%
Inst Owner Change1.71%
Ins Owners15.28%
Ins Owner Change-0.83%
Market Cap258.72M
Revenue(TTM)513.12M
Net Income(TTM)87.08M
Analysts85
Price Target15.64 (15.34%)
Short Float %2.43%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend1.51
Dividend Growth(5Y)44.41%
DP32%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)73.94%
Min EPS beat(2)51.8%
Max EPS beat(2)96.08%
EPS beat(4)3
Avg EPS beat(4)116.67%
Min EPS beat(4)-38.73%
Max EPS beat(4)357.52%
EPS beat(8)3
Avg EPS beat(8)-15.69%
EPS beat(12)5
Avg EPS beat(12)-38.45%
EPS beat(16)7
Avg EPS beat(16)-38.87%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)1.22%
Revenue beat(4)1
Avg Revenue beat(4)-5.15%
Min Revenue beat(4)-11.2%
Max Revenue beat(4)1.22%
Revenue beat(8)3
Avg Revenue beat(8)-3.61%
Revenue beat(12)4
Avg Revenue beat(12)-7.63%
Revenue beat(16)6
Avg Revenue beat(16)-5.81%
PT rev (1m)0%
PT rev (3m)2.22%
EPS NQ rev (1m)13.13%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.23 | ||
| Fwd PE | 18.21 | ||
| P/S | 0.5 | ||
| P/FCF | 9.5 | ||
| P/OCF | 8.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.23 |
EPS(TTM)0.61
EY4.5%
EPS(NY)0.74
Fwd EY5.49%
FCF(TTM)1.43
FCFY10.52%
OCF(TTM)1.6
OCFY11.83%
SpS26.89
BVpS-4.76
TBVpS-4.76
PEG (NY)0.4
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.56% | ||
| ROE | N/A | ||
| ROCE | 18.17% | ||
| ROIC | 14.35% | ||
| ROICexc | 20.56% | ||
| ROICexgc | 20.56% | ||
| OM | 7.36% | ||
| PM (TTM) | 16.97% | ||
| GM | 15.09% | ||
| FCFM | 5.31% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.51 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 55.49% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 3.93 | ||
| Cash Conversion | 69.77% | ||
| Profit Quality | 31.27% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.88 |
F-Score5
WACC8.41%
ROIC/WACC1.71
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)662.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y55.83%
EPS Next 2Y43.82%
EPS Next 3Y37.62%
EPS Next 5Y25.75%
Revenue 1Y (TTM)-6.42%
Revenue growth 3Y40.18%
Revenue growth 5Y19.45%
Sales Q2Q%41.73%
Revenue Next Year-9.34%
Revenue Next 2Y3.58%
Revenue Next 3Y6.71%
Revenue Next 5Y8.26%
EBIT growth 1Y40.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40%
EBIT Next 3Y25.77%
EBIT Next 5Y18.53%
FCF growth 1Y285.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2455.23%
OCF growth 3YN/A
OCF growth 5YN/A
FREIGHTCAR AMERICA INC / RAIL FAQ
What is the fundamental rating for RAIL stock?
ChartMill assigns a fundamental rating of 4 / 10 to RAIL.
Can you provide the valuation status for FREIGHTCAR AMERICA INC?
ChartMill assigns a valuation rating of 6 / 10 to FREIGHTCAR AMERICA INC (RAIL). This can be considered as Fairly Valued.
What is the profitability of RAIL stock?
FREIGHTCAR AMERICA INC (RAIL) has a profitability rating of 4 / 10.
How financially healthy is FREIGHTCAR AMERICA INC?
The financial health rating of FREIGHTCAR AMERICA INC (RAIL) is 2 / 10.
Can you provide the dividend sustainability for RAIL stock?
The dividend rating of FREIGHTCAR AMERICA INC (RAIL) is 0 / 10 and the dividend payout ratio is 32%.