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Freightcar America (RAIL)
NASDAQ:RAIL
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Freightcar America
(NASDAQ:RAIL)
47Neutral
Freightcar America (RAIL) vs. S&P 500 (SPY)
Market Cap
$88.43M
Dividend YieldN/A
Average Volume (3M)304.02K
Price to Earnings (P/E)―
Beta (1Y)1.99
Revenue Growth55.84%
EPS Growth-159.47%
CountryUS
Employees2,030
SectorIndustrials
Sector Strength63
IndustryRailroads
Share Statistics
EPS (TTM)-3.14
Shares Outstanding19,058,113
10 Day Avg. Volume276,730
30 Day Avg. Volume304,025
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.21
Price to Cash Flow (P/CF)5.10
P/FCF Ratio5.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.25Price Target Upside207.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Freightcar America Business Overview & Revenue Model
Company DescriptionFreightcar America (RAIL) is a leading manufacturer of railroad freight cars in North America. The company specializes in designing and producing a diverse array of railcars tailored to meet the specific needs of its customers across various industries. Freightcar America's product portfolio includes covered hoppers, open-top hoppers, flat cars, and intermodal and non-intermodal railcars, catering to sectors like agriculture, construction, and energy.
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, the company's high leverage and negative shareholder equity present significant risks. Continued focus on improving profitability and financial stability is critical for future success.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 |
| 53.45M | 73.85M | 127.26M | 98.06M | 85.46M | Net Debt |
| 9.00M | 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
Negative
4.64
Price Trends
8.70
Negative
9.50
Negative
8.56
Negative
Market Momentum
-0.88
Negative
29.35
Positive
6.99
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 4.64 is below the 20-day moving average (MA) of 6.10, below the 50-day MA of 8.70, and below the 200-day MA of 8.56, indicating a bearish trend. The MACD of -0.88 indicates Negative momentum. The RSI at 29.35 is Positive, neither overbought nor oversold. The STOCH value of 6.99 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $127.81B | 19.24 | 42.60% | 2.49% | 0.54% | 6.06% | |
72 Outperform | $1.43B | 7.89 | 13.71% | 2.63% | -9.47% | 69.11% | |
70 Neutral | $2.05B | 15.26 | 14.57% | 4.54% | 3.21% | 29.59% | |
69 Neutral | $27.50B | 26.64 | 10.26% | 0.53% | 7.34% | 32.91% | |
65 Neutral | $5.58B | 12.10 | 15.71% | 2.35% | 7.25% | 25.82% | |
62 Neutral | $7.25B | 12.39 | 3.08% | 3.39% | 3.63% | -14.32% | |
47 Neutral | $88.43M | ― | 156.43% | ― | 55.84% | -159.47% |
* Industrials Sector Average
Performance Comparison
RAIL
Freightcar America
4.64
0.77
19.90%
GBX
Greenbrier
45.61
-7.29
-13.78%
R
Ryder System
133.77
16.25
13.83%
TRN
Trinity Industries
25.09
-1.79
-6.66%
UNP
Union Pacific
213.26
-21.75
-9.25%
WAB
Westinghouse Air Brake Technologies
160.95
12.20
8.20%
Freightcar America Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -25.52% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, significant revenue and market share growth, and successful expansion into new segments. However, there were some concerns regarding industry headwinds, tariff uncertainties, and timing delays in delivery fulfillment. Despite these challenges, the overall sentiment is positive, given the company's strong execution and strategic positioning.Highlights
Significant Revenue and Market Share Growth
FreightCar America achieved a 56% revenue growth for fiscal year 2024 and a 57% increase in market share despite a 45% decline in their addressable market.
Record Adjusted EBITDA Performance
The company delivered $43 million in adjusted EBITDA, representing a 114% increase over the prior year, with adjusted EBITDA per railcar improving by 48%.
Strong Cash Flow Generation
FreightCar America generated $45 million in cash flow for the full year and $22 million in adjusted free cash flow, marking a significant improvement in profitability.
Successful Expansion into Tank Car Segment
The company launched into the tank car segment and secured a multiyear agreement for tank car recertifications, expanding their competitive advantages.
Financial Stability and Cost Savings
Redemption of outstanding preferred shares and expansion of ABL credit facility led to approximately $9.2 million in cost savings and enhanced borrowing capacity.
Lowlights
Industry Headwinds and Market Dynamics
Despite capturing additional market share, FreightCar America operated in a declining market with industry railcar deliveries below typical replacement demand.
Potential Tariff Uncertainties
Tariffs present an element of uncertainty, impacting customer purchasing behavior and creating potential challenges for future order placements.
Timing Delays in Delivery Fulfillment
There were some minor timing delays for the fourth quarter deliveries, impacting revenue recognition and pushing fulfillment into early Q1 2025.
SG&A Expenses Increase
SG&A expenses for the fourth quarter of 2024 increased to $9.4 million from $7.7 million in the same period last year.
Company Guidance
In the fourth quarter and full-year 2024 earnings call for FreightCar America, the company reported significant achievements, including a 56% increase in revenue and a 114% rise in adjusted EBITDA, amounting to $43 million. The company's market share for orders won grew by 57% despite a 45% decline in their addressable market. FreightCar America also improved its adjusted EBITDA per railcar by 48% to $9,858. Cash flow for the year was $45 million, with $22 million in adjusted free cash flow. Looking forward to 2025, the company forecasts deliveries of 4,400 to 4,900 railcars, with revenues between $530 million and $595 million and an adjusted EBITDA range of $43 million to $49 million. They also reported a robust backlog of 2,797 units valued at $267 million, reflecting strong demand and inquiry levels.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.