Freightcar America (RAIL) AI Stock Analysis

• Market Cap: $152.82M
• Dividend Yield: N/A
• Average Volume (3M): 156.23K
• Price to Earnings (P/E): 3.2
• Beta (1Y): 2.39
• Revenue Growth: -6.18%
• EPS Growth: N/A
• Country: US
• Employees: 2,030
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.24
• Shares Outstanding: 19,079,105
• 10 Day Avg. Volume: 145,565
• 30 Day Avg. Volume: 156,232
• 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: 2.63
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 5.18
• Enterprise Value/Ebitda: 15.41
• 1Y Price Target: $17.00
• Price Target Upside: 77.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.55
• Revenue Forecast (FY): $537.13M

• Rating: 56 Neutral
• Price Target: $8.00 ▼(-16.49% Downside)

Freightcar America's stock score is primarily influenced by its financial performance, which shows signs of recovery but is hindered by financial instability and cash flow issues. The technical analysis indicates bearish momentum, while the valuation suggests the stock may be undervalued. The strong earnings call performance is not factored into the score due to its exclusion from the weighted calculation.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for FreightCar America's products, suggesting a robust market position and potential for continued expansion.

Operational Efficiency

Enhancements in operational efficiency can lead to sustained margin improvements and profitability, strengthening the company's competitive position.

Market Position

A strong backlog and significant market share highlight FreightCar America's competitive advantage and ability to secure future revenue streams.

Negative Factors

Financial Instability

Negative equity and high leverage pose risks to financial stability, potentially limiting the company's ability to invest in growth and weather economic downturns.

Industry Demand Challenges

Persistently low industry demand could pressure FreightCar America's sales and profitability, challenging its ability to maintain growth momentum.

Cash Flow Management

Inefficient cash flow management may hinder the company's capacity to fund operations and strategic initiatives, impacting long-term growth prospects.

Freightcar America Business Overview & Revenue Model

Company Description

FreightCar America, Inc. is a leading manufacturer of railcars and a provider of railcar leasing services in the North American market. The company specializes in producing a diverse range of railcars, including covered hoppers, gondolas, and intermodal cars, catering to various industries such as coal, agriculture, and chemicals. FreightCar America operates through two primary segments: railcar manufacturing and railcar leasing, focusing on innovation and sustainability in the rail transportation sector.

How the Company Makes Money

FreightCar America generates revenue primarily through the sale of railcars and leasing services. The manufacturing segment earns income by producing new railcars tailored to customer specifications, with contracts typically tied to volume and pricing agreements that can fluctuate based on market demand. The railcar leasing segment provides a steady revenue stream by leasing railcars to customers for specified periods, which includes maintenance and management services. Key revenue drivers include strong relationships with major rail operators and freight companies, and the company's ability to adapt to market trends, such as increasing demand for environmentally friendly railcar designs. Additionally, strategic partnerships with suppliers and industry stakeholders enhance its competitive advantage and revenue potential.

Freightcar America Financial Statement Overview

Summary

Freightcar America shows positive revenue growth and improved profit margins, but faces significant financial instability with negative equity and high leverage. Cash flow management needs improvement, with declining free cash flow and low conversion of net income to cash.

Income Statement

Freightcar America shows a positive revenue growth rate of 10.14% TTM, indicating a recovery trend. The gross profit margin improved to 15.09% TTM from 11.98% in the previous year, reflecting better cost management. However, the net profit margin is volatile, with a significant improvement to 17.40% TTM from negative margins in previous years. The EBIT and EBITDA margins are still relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The company has a negative stockholders' equity, leading to a negative debt-to-equity ratio, which is a significant risk factor. The return on equity is negative TTM, indicating inefficiencies in generating returns from equity. The equity ratio is not directly calculable due to negative equity, highlighting financial instability.

Cash Flow

Operating cash flow is positive at $30.62 million TTM, but free cash flow has decreased by 15% TTM, indicating potential cash management issues. The operating cash flow to net income ratio is low at 0.23, suggesting that net income is not fully translating into cash flow. However, the free cash flow to net income ratio is relatively strong at 0.89, indicating some efficiency in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	513.12M	559.42M	358.09M	364.75M	203.05M	108.45M
Gross Profit	77.43M	67.04M	41.76M	25.82M	11.46M	-13.50M
EBITDA	26.05M	39.51M	18.14M	-5.82M	-11.00M	-33.67M
Net Income	89.31M	-75.82M	-23.59M	-38.85M	-41.45M	-84.44M
Balance Sheet
Total Assets	340.76M	224.22M	259.46M	199.74M	200.66M	182.74M
Cash, Cash Equivalents and Short-Term Investments	62.74M	44.45M	40.56M	33.83M	21.28M	43.59M
Total Debt	47.63M	158.99M	75.23M	127.26M	98.06M	85.46M
Total Liabilities	431.63M	374.49M	305.67M	228.32M	202.32M	152.25M
Stockholders Equity	-90.87M	-150.27M	-46.21M	-28.58M	-1.66M	30.50M
Cash Flow
Free Cash Flow	27.23M	39.91M	-7.95M	3.69M	-57.69M	-68.75M
Operating Cash Flow	30.62M	44.93M	4.77M	11.50M	-55.40M	-58.91M
Investing Cash Flow	-2.81M	-5.02M	-4.37M	-7.82M	-1.68M	-6.09M
Financing Cash Flow	-9.90M	-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: 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 9.58 is above the 20-day moving average (MA) of 8.22, above the 50-day MA of 9.03, and above the 200-day MA of 8.29, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 62.14 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
WAB	75 Outperform	$35.52B	30.19	11.07%	0.48%	4.40%	14.60%
FSTR	73 Outperform	$280.09M	60.84	2.74%	―	-5.51%	-88.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GBX	60 Neutral	$1.38B	7.03	14.03%	2.83%	-8.66%	27.14%
RAIL	56 Neutral	$152.82M	3.24	―	―	-6.18%	―
TRN	55 Neutral	$2.12B	23.10	10.04%	4.53%	-33.03%	-44.18%
EVI	54 Neutral	$354.66M	56.41	3.77%	―	12.63%	-21.23%

Freightcar America Corporate Events

FreightCar America Reports Strong Q3 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 to repurpose idled rail assets.

FreightCar America Reports Strong Q3 Earnings Amid Industry Challenges

FreightCar America recently held its earnings call, revealing a strong operational performance with significant revenue growth and record adjusted EBITDA. The company has effectively navigated challenges within the broader railcar industry, maintaining a healthy backlog and achieving market share growth. Despite these successes, there are ongoing industry demand challenges and a revenue guidance adjustment reflecting current market conditions.

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.