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Freightcar America (RAIL)
:RAIL
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Freightcar America
(NASDAQ:RAIL)
52Neutral
Freightcar America (RAIL) vs. S&P 500 (SPY)
Market Cap
$129.66M
Dividend YieldN/A
Average Volume (3M)267.78K
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth55.84%
EPS Growth-159.47%
CountryUS
Employees2,030
SectorIndustrials
Sector Strength78
IndustryRailroads
Share Statistics
EPS (TTM)0.05
Shares Outstanding19,040,310
10 Day Avg. Volume301,069
30 Day Avg. Volume267,777
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.22
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.30
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.25Price Target Upside65.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Freightcar America Business Overview & Revenue Model
Company DescriptionFreightCar 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 MoneyFreightcar America makes money primarily through the sale of its manufactured railcars. The company's revenue model is centered around designing and manufacturing customized railcars for its clients, which include railroads, leasing companies, and industrial shippers. A significant portion of its earnings comes from long-term contracts and orders placed by these clients. Additionally, the company may engage in leasing and refurbishing railcars, providing additional revenue streams. Freightcar America's strategic partnerships with key suppliers and adherence to industry standards also play a crucial role in maintaining its competitive edge and profitability.
Freightcar America Financial Statement Overview
Summary
FreightCar America faces financial challenges with persistent net losses and negative equity. While revenue and cash flow show signs of improvement, with a 56% revenue growth and positive free cash flow, the company's high leverage and negative shareholder equity present significant risks.Income Statement
The income statement reflects a challenging financial performance with negative net income over the years. Recent data shows some improvement in gross profit margin and EBIT margin in 2024, but net profit margin remains negative due to substantial net losses. Revenue growth in 2024 was strong at 56.2%, indicating potential recovery, but consistent profitability remains elusive.45
Neutral
Balance Sheet
The balance sheet reveals significant financial instability with negative stockholders' equity indicating solvency issues. The debt-to-equity ratio cannot be calculated due to negative equity. The equity ratio is also negative, highlighting financial risk. While total assets have increased slightly, the high leverage remains a concern for the company.30
Negative
Cash Flow
Cash flow analysis shows an improvement in free cash flow, which turned positive in 2024, reflecting better cash generation. The operating cash flow to net income ratio is favorable, suggesting efficient cash management despite net losses. However, past volatility in cash flow indicates potential risks ahead.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 559.42M | 358.09M | 364.75M | 203.05M | 108.45M | Gross Profit |
| 67.04M | 41.76M | 25.82M | 11.46M | -13.50M | EBIT |
| 37.34M | 10.49M | 22.00K | -16.07M | -80.59M | EBITDA |
| -57.37M | -2.45M | -4.65M | -20.93M | -67.41M | Net Income Common Stockholders |
| -75.82M | -23.59M | -38.85M | -41.45M | -86.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 44.45M | 39.60M | 37.91M | 26.24M | 54.05M | Total Assets |
| 224.22M | 259.46M | 199.74M | 200.66M | 182.74M | Total Debt |
| 158.99M | 73.85M | 127.26M | 98.06M | 85.46M | Net Debt |
| 114.54M | 34.25M | 89.35M | 71.82M | 31.41M | Total Liabilities |
| 374.49M | 222.21M | 228.32M | 202.32M | 152.25M | Stockholders Equity |
| -150.27M | -46.21M | -28.58M | -1.66M | 30.50M |
| Cash Flow | Free Cash Flow | |||
| 39.91M | -7.95M | 3.69M | -57.69M | -68.75M | Operating Cash Flow |
| 44.93M | 4.77M | 11.50M | -55.40M | -58.91M | Investing Cash Flow |
| -5.02M | -4.37M | -7.82M | -1.68M | -6.09M | Financing Cash Flow |
| -36.02M | 2.25M | 7.99M | 29.27M | 52.79M |
Freightcar America Technical Analysis
Positive
6.81
Price Trends
6.20
Positive
8.50
Negative
8.80
Negative
Market Momentum
0.06
Negative
59.85
Neutral
55.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAIL, the sentiment is Positive. The current price of 6.81 is above the 20-day moving average (MA) of 5.74, above the 50-day MA of 6.20, and below the 200-day MA of 8.80, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 55.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RAIL.
Freightcar America Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $32.38B | 29.91 | 10.62% | 0.45% | 5.21% | 24.15% | |
71 Outperform | $2.04B | 15.37 | 14.14% | 4.64% | -9.40% | 8.41% | |
70 Outperform | $210.34M | 5.96 | 23.08% | ― | -2.39% | 2863.06% | |
67 Neutral | $1.38B | 6.95 | 14.69% | 2.79% | -5.79% | 82.71% | |
64 Neutral | $214.55M | 34.54 | 4.73% | ― | -1.93% | -0.69% | |
64 Neutral | $4.27B | 11.80 | 5.31% | 249.79% | 4.07% | -9.02% | |
52 Neutral | $129.66M | ― | 156.43% | ― | 55.84% | -159.47% |
* Industrials Sector Average
Performance Comparison
RAIL
Freightcar America
6.81
3.00
78.74%
EVI
EVI Industries
16.82
-5.21
-23.65%
GBX
Greenbrier
43.55
-6.91
-13.69%
FSTR
L. B. Foster Company
19.66
-7.51
-27.64%
TRN
Trinity Industries
24.62
-4.84
-16.43%
WAB
Westinghouse Air Brake Technologies
189.19
25.38
15.49%
Freightcar America Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 8.96%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong market share gains, financial performance, and a robust order pipeline. While there were some challenges with lower railcar production and increased SG&A expenses, the positive aspects significantly outweigh the negatives.Q1-2025 Updates
Positive Updates
Significant Market Share Gain
FreightCar America expanded its addressable market share from 8% to 27% over the last 12 months, becoming the fastest-growing railcar manufacturer in North America.
Strong Financial Performance
Gross margin expanded to 14.9%, up 780 basis points year-over-year, nearly doubling from the same period last year. Adjusted EBITDA was $7.3 million, exceeding last year despite lower revenue and deliveries.
Robust Order Pipeline and Backlog
1,250 new railcar orders valued at approximately $141 million were booked in Q1, increasing the backlog to 3,337 railcars totaling $318 million. This provides excellent visibility well into 2025.
Consistent Cash Flow Generation
Generated $12.8 million in operating cash flow, marking the fourth consecutive quarter of positive cash flow from operations. Adjusted free cash flow improved by $43 million compared to Q1 2024.
Positive Future Outlook
Reaffirmed full-year 2025 guidance with expected deliveries of 4,500 to 4,900 railcars and revenue of $530 million to $595 million. Adjusted EBITDA is expected between $43 million and $49 million.
Negative Updates
Lower Railcar Production
Planned lower railcar production in Q1 as a portion of manufacturing capacity was dedicated to delivering large custom fabrications, resulting in fewer deliveries during the quarter.
Increased SG&A Expenses
SG&A expenses for Q1 2025 totaled $10.5 million, up from $7.5 million in Q1 2024. Excluding stock-based compensation, SG&A as a percentage of revenue increased by approximately 47 basis points.
Company Guidance
During FreightCar America's first quarter 2025 earnings call, the company reaffirmed its full-year guidance, projecting deliveries of 4,500 to 4,900 railcars and revenue between $530 million and $595 million. The adjusted EBITDA target remains between $43 million and $49 million. The first quarter saw a gross margin expansion to 14.9%, an increase of 780 basis points year-over-year, with adjusted EBITDA reaching $7.3 million. Despite lower deliveries, the company booked 1,250 new railcar orders worth approximately $141 million, driving its backlog to 3,337 railcars valued at $318 million. With a market share increase from 8% to 27% over the past 12 months, FreightCar America maintains a positive outlook, expecting industry-wide deliveries to gain momentum throughout the year.Freightcar America Corporate Events
Business Operations and StrategyFinancial Disclosures
FreightCar America Projects Growth and Enters Tank Car Market
Positive
Mar 12, 2025
FreightCar America reported a strong financial performance for the fourth quarter and full year 2024, with a 56% increase in revenue and a 60% rise in gross profit. The company generated $45 million in operating cash flow and $22 million in adjusted free cash flow for the year. Looking ahead to 2025, FreightCar America projects sequential growth in deliveries, revenue, and adjusted EBITDA, with an expected revenue range of $530 million to $595 million and railcar deliveries between 4,500 and 4,900 units. The company has also entered the tank car space with a significant multi-year conversion order, enhancing its market position.
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.