Freightcar America (RAIL) AI Stock Analysis

• Market Cap: $158.95M
• Dividend Yield: N/A
• Average Volume (3M): 128.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.35
• Revenue Growth: -6.00%
• EPS Growth: -12.45%
• Country: US
• Employees: 2,030
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.11
• Shares Outstanding: 19,127,413
• 10 Day Avg. Volume: 138,468
• 30 Day Avg. Volume: 128,668
• PEG Ratio: -0.02
• Price to Book (P/B): -1.83
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 6.90
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 5.46
• Enterprise Value/Ebitda: -4.11
• 1Y Price Target: $17.00
• Price Target Upside: 77.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.56
• Revenue Forecast (FY): $569.13M

• Rating: 46 Neutral
• Price Target: $9.00 ▼(-6.05% Downside)

Freightcar America's overall stock score reflects significant financial challenges, including declining revenues and high leverage. While there are positive signs from the earnings call, such as expanded gross margins and increased orders, the company's valuation and technical indicators suggest caution. The most significant factor is the company's financial instability, which needs to be addressed for future growth.

Freightcar America Business Overview & Revenue Model

Company Description

FreightCar America, Inc., through its subsidiaries, designs, manufactures, and sells railcars and railcar components for the transportation of bulk commodities and containerized freight products primarily in North America. It operates in two segments, Manufacturing and Parts. The company offers a range of freight cars, including open top hoppers; covered hopper cars; gondolas; triple hoppers and hybrid aluminum/stainless steel railcars; ore hopper and gondola railcars; ballast hopper cars; aggregate hopper cars; intermodal flats; and non-intermodal flat cars. It also provides railcars, including coal cars, bulk commodity cars, coil steel cars, and boxcars; and woodchip hoppers, aluminum vehicle carriers, and articulated bulk container railcars. In addition, the company sells used railcars; leases, rebuilds, and converts railcars; and sells forged, cast, and fabricated parts for various railcars. It also exports its manufactured railcars to Latin America and the Middle East. The company's customers primarily include financial institutions, railroads, and shippers. FreightCar America, Inc. was founded in 1901 and is headquartered in Chicago, Illinois.

How the Company Makes Money

FreightCar America generates revenue primarily through the manufacturing and sale of freight cars, which are crucial for transporting goods across the rail network. The company earns money by receiving orders from railroads and leasing companies, as well as through the sale of railcar parts and services for maintenance. Key revenue streams include direct sales of new railcars, lease agreements with clients, and aftermarket services, which encompass repairs and upgrades. Strategic partnerships with major rail operators and leasing companies also bolster its revenue, as these relationships can lead to long-term contracts and consistent demand for its products.

Freightcar America Financial Statement Overview

Summary

Freightcar America is facing significant financial challenges, including declining revenues, negative profitability, and high leverage. Despite improvements in gross margins, the company needs to address its financial instability and cash flow issues to ensure long-term sustainability.

Income Statement

Freightcar America shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 5.82%, and the net profit margin is negative at -2.21%, reflecting ongoing profitability challenges. However, the gross profit margin has improved to 14.90% from previous periods, indicating better cost management. The EBIT margin is also negative, suggesting operational inefficiencies. Overall, the company is struggling with profitability, but there are signs of improvement in gross margins.

Balance Sheet

The balance sheet reveals significant financial instability, with a negative stockholders' equity and a debt-to-equity ratio of -0.57 in the TTM period, indicating high leverage and financial risk. The return on equity is positive at 10.21%, which is unusual given the negative equity, suggesting volatility in financial performance. The company needs to address its leverage to improve financial health.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 59.28% in the TTM period, indicating cash generation challenges. The operating cash flow to net income ratio is 0.28, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.90, indicating that the company is generating cash relative to its net losses. Overall, cash flow management needs improvement to support operations and reduce financial strain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	465.86M	559.42M	358.09M	364.75M	203.05M	108.45M
Gross Profit	69.42M	67.04M	41.76M	25.82M	11.46M	-13.50M
EBITDA	-92.15M	-57.37M	-2.45M	-4.65M	-20.93M	-67.41M
Net Income	-10.30M	-75.82M	-23.59M	-38.85M	-41.45M	-86.10M
Balance Sheet
Total Assets	328.09M	224.22M	259.46M	199.74M	200.66M	182.74M
Cash, Cash Equivalents and Short-Term Investments	61.35M	44.45M	39.60M	37.91M	26.24M	54.05M
Total Debt	152.30M	158.99M	73.85M	127.26M	98.06M	85.46M
Total Liabilities	411.56M	374.49M	222.21M	228.32M	202.32M	152.25M
Stockholders Equity	-83.46M	-150.27M	-46.21M	-28.58M	-1.66M	30.50M
Cash Flow
Free Cash Flow	32.03M	39.91M	-7.95M	3.69M	-57.69M	-68.75M
Operating Cash Flow	35.72M	44.93M	4.77M	11.50M	-55.40M	-58.91M
Investing Cash Flow	-3.10M	-5.02M	-4.37M	-7.82M	-1.68M	-6.09M
Financing Cash Flow	-10.63M	-36.02M	2.25M	7.99M	29.27M	52.79M

Freightcar America Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 9.58 is above the 20-day moving average (MA) of 9.24, above the 50-day MA of 9.14, and above the 200-day MA of 8.59, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 18.70 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	75 Outperform	$34.84B	29.61	11.07%	0.46%	4.40%	14.60%
FSTR	73 Outperform	$283.73M	61.17	2.74%	―	-5.51%	-88.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GBX	60 Neutral	$1.32B	6.72	14.03%	2.70%	-8.66%	27.14%
EVI	56 Neutral	$354.66M	56.41	4.59%	―	10.26%	29.40%
TRN	55 Neutral	$2.11B	22.92	10.04%	4.68%	-33.03%	-44.18%
RAIL	46 Neutral	$158.95M	―	―	―	-6.00%	-12.45%

Freightcar America Corporate Events

FreightCar America Amends Executive Severance Benefits

On September 11, 2025, FreightCar America, Inc.’s board of directors approved amendments to the employment arrangements of its top executives, Nicholas J. Randall and Michael A. Riordan, effective September 3, 2025. These amendments modify the severance benefits for these executives in the event of a qualifying termination following a Change in Control. The changes include extended salary continuation, bonus payments, and health plan participation, replacing previous severance benefits under the company’s Executive Severance Plan.

The most recent analyst rating on (RAIL) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Freightcar America stock, see the RAIL Stock Forecast page.

FreightCar America Declares Stockholder Rights Plan

On September 2, 2025, FreightCar America’s Board of Directors declared a dividend of one preferred share purchase right for each outstanding share of common stock, effective September 8, 2025. This move is part of a stockholder rights plan designed to protect the company from hostile takeovers by imposing penalties on any entity acquiring 15% or more of the company without board approval. The plan aims to ensure fair treatment of all stockholders and safeguard the company’s long-term value, while allowing the board to consider offers that align with stockholders’ best interests.

The most recent analyst rating on (RAIL) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Freightcar America stock, see the RAIL Stock Forecast page.

FreightCar America Navigates Challenges with Strategic Growth

FreightCar America’s recent earnings call painted a mixed picture of the company’s current standing and future prospects. While the company demonstrated strong financial discipline and operational efficiency, resulting in improved gross margins and positive cash flow, it also faced challenges such as declining revenue and deliveries year-over-year. The broader industry is experiencing a softening demand for new railcars, yet FreightCar America’s strategic investments and robust cash position offer a positive outlook for future growth.

FreightCar America Reports Strong Q2 2025 Results

FreightCar America, headquartered in Chicago, Illinois, is a prominent manufacturer and supplier of railroad freight cars, railcar parts, and components, specializing in railcar repairs and conversions. The company plays a crucial role in the North American supply chain.