Freightcar America (RAIL) AI Stock Analysis

• Market Cap: $160.10M
• Dividend Yield: N/A
• Average Volume (3M): 210.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• Revenue Growth: -6.00%
• EPS Growth: -12.45%
• Country: US
• Employees: 2,030
• Sector: Industrials
• Sector Strength: 75
• Industry: Railroads
• EPS (TTM): 0.11
• Shares Outstanding: 19,127,413
• 10 Day Avg. Volume: 141,661
• 30 Day Avg. Volume: 210,202
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.37
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 5.46
• Enterprise Value/Ebitda: -4.11
• 1Y Price Target: $17.00
• Price Target Upside: 103.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $8.50 ▲(1.67% Upside)

Freightcar America's overall stock score is primarily impacted by its financial instability and bearish technical indicators. While the earnings call provided some positive insights, the company's high leverage and negative profitability weigh heavily on its score. The lack of dividend yield and negative P/E ratio further contribute to a low valuation score.

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, with declining revenues, negative profitability, and high leverage. Improvements in gross margins are noted, but 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: 8.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 8.36 is below the 20-day moving average (MA) of 8.76, below the 50-day MA of 9.69, and below the 200-day MA of 8.81, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 43.85 is Neutral, 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
FSTR	76 Outperform	$271.09M	7.95	22.67%	―	-7.03%	397.79%
WAB	71 Outperform	$33.13B	28.54	10.84%	0.49%	3.38%	17.21%
GBX	70 Neutral	$1.43B	6.52	16.16%	2.64%	0.71%	84.57%
EVI	67 Neutral	$349.46M	55.69	4.71%	―	3.51%	33.35%
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%
TRN	64 Neutral	$2.30B	24.75	10.47%	4.13%	-22.95%	-40.67%
RAIL	44 Neutral	$160.10M	―	156.43%	―	-6.00%	-12.45%

Freightcar America Corporate Events

FreightCar America Holds Annual Stockholders Meeting

On May 14, 2025, FreightCar America, Inc. held its Annual Meeting of Stockholders where several key proposals were voted on. Stockholders elected Class II directors Jesús Salvador Gil Benavides and Rodger L. Boehm for three-year terms, approved executive compensation, and ratified Grant Thornton LLP as the independent registered public accounting firm for fiscal year 2025. These decisions reflect the company’s continued focus on governance and financial oversight.