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Freightcar America (RAIL)
NASDAQ:RAIL
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Freightcar America
(NASDAQ:RAIL)57Neutral
Freightcar America (RAIL) vs. S&P 500 (SPY)
Market Cap
$145.81M
Dividend YieldN/A
Average Volume (3M)201.29K
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth52.11%
EPS Growth-234.65%
CountryUS
Employees2,023
SectorIndustrials
Sector Strength66
IndustryTransportation
Share Statistics
EPS (TTM)-4.24
Shares Outstanding19,060,472
10 Day Avg. Volume244,619
30 Day Avg. Volume201,288
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.26
Price to Cash Flow (P/CF)5.00
P/FCF Ratio4.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.38Price Target Upside93.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Freightcar America Business Overview & Revenue Model
Company DescriptionFreightCar America, Inc. (RAIL) is an established company in the transportation manufacturing sector, specializing in the design and production of railcars. With a rich history dating back to 1901, the company offers a diverse portfolio of railcars, including gondolas, hoppers, and intermodal equipment, catering to various industries such as agriculture, energy, and industrial goods. FreightCar America is dedicated to providing high-quality, durable rail solutions that meet the evolving needs of its clients across North America.
How the Company Makes MoneyFreightCar America generates revenue primarily through the sale of new railcars to a wide range of customers, including railroads, shippers, and leasing companies. The company also earns money from refurbishing and repairing existing railcars, which extends their service life and enhances performance. Additionally, FreightCar America may engage in leasing activities, offering railcars to clients on a lease basis, providing a steady stream of revenue. Strategic partnerships with key suppliers and industry stakeholders, along with a focus on innovation and operational efficiency, further support its financial performance and competitive edge in the railcar manufacturing market.
Freightcar America Financial Statement Overview
Summary
FreightCar America is experiencing revenue growth and improvements in cash flow, though profitability remains elusive with negative net margins and equity. The high leverage and negative equity pose significant risks, but operational cash flow improvements offer some optimism for stabilization.Income Statement
The company has shown significant revenue growth in the TTM period, with a Gross Profit Margin of 10.56%. However, the Net Profit Margin is negative at -20.67%, indicating challenges in achieving profitability. The EBIT Margin improved to 4.69%, but the EBITDA Margin remains negative, signaling potential operational inefficiencies.45
Neutral
Balance Sheet
The Debt-to-Equity Ratio is not calculable due to negative equity, indicating high leverage risk. Return on Equity is also negative, consistent with the net losses. The Equity Ratio is negative, reflecting a capital structure burdened by liabilities exceeding assets.30
Negative
Cash Flow
The company has demonstrated strong Free Cash Flow growth and a positive Operating Cash Flow to Net Income Ratio of -0.62, suggesting improved cash generation despite net losses. The Free Cash Flow to Net Income Ratio is also positive, highlighting effective cash management.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 548.33M | 358.09M | 364.75M | 203.05M | 108.45M | 229.96M | Gross Profit |
| 57.90M | 41.76M | 25.82M | 11.46M | -13.50M | -14.30M | EBIT |
| 25.74M | 10.49M | 22.00K | -16.07M | -80.59M | -75.60M | EBITDA |
| -98.46M | -2.45M | -4.65M | -20.93M | -67.41M | -51.82M | Net Income Common Stockholders |
| -113.30M | -23.59M | -38.85M | -41.45M | -86.10M | -75.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 39.60M | 39.60M | 37.91M | 26.24M | 54.05M | 66.26M | Total Assets |
| 259.46M | 259.46M | 199.74M | 200.66M | 182.74M | 245.20M | Total Debt |
| 73.85M | 73.85M | 127.26M | 98.06M | 85.46M | 78.93M | Net Debt |
| 34.25M | 34.25M | 89.35M | 71.82M | 31.41M | 12.67M | Total Liabilities |
| 222.21M | 222.21M | 228.32M | 202.32M | 152.25M | 128.05M | Stockholders Equity |
| -46.21M | -46.21M | -28.58M | -1.66M | 30.50M | 117.21M |
| Cash Flow | Free Cash Flow | ||||
| 62.74M | -7.95M | 3.69M | -57.69M | -68.75M | -24.55M | Operating Cash Flow |
| 70.23M | 4.77M | 11.50M | -55.40M | -58.91M | -18.98M | Investing Cash Flow |
| -7.48M | -4.37M | -7.82M | -1.68M | -6.09M | 30.95M | Financing Cash Flow |
| -34.63M | 2.25M | 7.99M | 29.27M | 52.79M | 9.21M |
Freightcar America Technical Analysis
Negative
7.44
Price Trends
10.55
Negative
11.07
Negative
8.26
Negative
Market Momentum
-1.09
Positive
27.64
Positive
7.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAIL, the sentiment is Negative. The current price of 7.44 is below the 20-day moving average (MA) of 10.27, below the 50-day MA of 10.55, and below the 200-day MA of 8.26, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 27.64 is Positive, neither overbought nor oversold. The STOCH value of 7.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RAIL.
Freightcar America Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $147.27B | 21.79 | 39.95% | 2.16% | 0.54% | 6.06% | |
75 Outperform | $1.76B | 9.73 | 13.04% | 2.21% | -9.47% | 69.11% | |
72 Outperform | $2.54B | 18.91 | 10.59% | 3.79% | 3.21% | 29.59% | |
70 Outperform | $6.46B | 13.88 | 15.69% | 1.98% | 7.25% | 25.82% | |
69 Neutral | $30.35B | 29.41 | 10.46% | 0.47% | 7.34% | 32.91% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
57 Neutral | $145.81M | ― | 156.43% | ― | 52.11% | -234.65% |
* Industrials Sector Average
Performance Comparison
RAIL
Freightcar America
7.44
4.41
145.54%
GBX
Greenbrier
53.66
4.45
9.04%
R
Ryder System
153.39
43.27
39.29%
TRN
Trinity Industries
29.44
5.20
21.45%
UNP
Union Pacific
241.52
-6.60
-2.66%
WAB
Westinghouse Air Brake Technologies
177.65
37.02
26.32%
Freightcar America Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: -52.64% | Next Earnings Date: Mar 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with significant revenue growth, strong market share gains, and improved cash flow. However, there were some concerns regarding lower gross margins compared to the previous year and a large noncash charge. Despite these challenges, the company raised its adjusted EBITDA guidance and maintained a strong cash position.Highlights
Significant Revenue Growth
Top line sales increased by 83% over the prior year period with consolidated revenues totaling $113.3 million, compared to $61.9 million in the third quarter of 2023.
Strong Market Share Gains
Captured 22% of industry orders on a trailing 12-month basis and gained 3% market share despite overall industry orders being down 20%.
Positive Cash Flow and Strong Balance Sheet
Delivered $7.2 million in operating cash flow, marking the second consecutive quarter of positive cash flow. The company holds $44.8 million in cash with no outstanding borrowings.
Increase in Adjusted EBITDA Guidance
Raised the midpoint of adjusted EBITDA guidance between $37 million and $39 million, representing a year-over-year increase of 89% at the midpoint.
Lowlights
Lower Gross Margin Year-over-Year
Gross margin decreased from 14.9% in Q3 2023 to 14.3% in Q3 2024, primarily due to a mix shift in railcars delivered.
Relatively Flat Rail Traffic
Rail traffic in terms of car loadings was down 1.7% year-over-year, driven by continued declines in coal car loadings.
Large Noncash Charge
Recognized a $110 million noncash charge for warrant liability due to the appreciation in share price during the quarter.
Company Guidance
During the third quarter of 2024 earnings call, FreightCar America reported significant financial and operational achievements, including an 83% increase in top-line sales over the prior year period and consistent gross margins of 14.3%. The company delivered 961 railcars, contributing to robust operating cash flow and maintaining a strong cash position of $44.8 million with no outstanding borrowings. FreightCar captured a 22% market share of industry orders on a trailing 12-month basis and increased its market share by 3% sequentially, despite a 20% downturn in overall industry orders. The company raised the midpoint of its adjusted EBITDA forecast to between $37 million and $39 million, representing an 89% year-over-year increase. These results underscore FreightCar's strategic focus on enhancing product offerings, capturing market share, and leveraging its manufacturing capabilities to sustain growth.Freightcar America Corporate Events
Private Placements and Financing
FreightCar America Strengthens Financial Position with New Loan
Positive
Jan 6, 2025
FreightCar America, Inc. entered into a $115 million Term Loan Agreement with Blue Torch Finance LLC on December 31, 2024, enabling the company to repay all debts and obligations under previous loan agreements, thereby releasing all related liens and security interests. Additionally, the company utilized the loan proceeds to redeem all outstanding Series C Preferred Stock from an affiliate of PIMCO, with a redemption price totaling $113,274,739, effectively terminating the rights of the stockholders and consolidating its financial structure.
Business Operations and StrategyFinancial Disclosures
FreightCar America Reports Strong Q3 2024 Performance
Positive
Nov 12, 2024
FreightCar America, Inc. reported impressive third-quarter 2024 results, showcasing an 83% increase in revenue year-over-year driven by 961 railcar deliveries. With a gross margin of 14.3% and an adjusted EBITDA soaring 211% to $10.9 million, the company highlights its operational excellence and strong market demand. As it raises its full-year EBITDA guidance, FreightCar America continues to leverage innovative solutions and strategic adaptability to meet customer needs and sustain growth momentum.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.