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American Railcar Industries

Nasdaq:ARII
Snowflake Description

Solid track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARII
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

American Railcar Industries, Inc., together with its subsidiaries, designs and manufactures hopper and tank railcars in North America. The last earnings update was 36 days ago. More info.


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  • American Railcar Industries has significant price volatility in the past 3 months.
ARII Share Price and Events
7 Day Returns
-0.2%
NasdaqGS:ARII
4.8%
US Machinery
3.5%
US Market
1 Year Returns
73.9%
NasdaqGS:ARII
-6.4%
US Machinery
4.5%
US Market
ARII Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
American Railcar Industries (ARII) -0.2% -0.7% 51.6% 73.9% 38.1% 64.6%
US Machinery 4.8% 4.3% -5.7% -6.4% 56.3% 32.1%
US Market 3.5% 1.6% -5.1% 4.5% 11.1% -52.4%
1 Year Return vs Industry and Market
  • ARII outperformed the Machinery industry which returned -6.4% over the past year.
  • ARII outperformed the Market in United States of America which returned 4.5% over the past year.
Price Volatility
ARII
Industry
5yr Volatility vs Market

ARII Value

 Is American Railcar Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of American Railcar Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for American Railcar Industries.

NasdaqGS:ARII Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ARII
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.082 (1 + (1- 21%) (39.4%))
1.419
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.42
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.419 * 7.05%)
12.96%

Discounted Cash Flow Calculation for NasdaqGS:ARII using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for American Railcar Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ARII DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 57.80 51.93 46.65 41.91 37.65
Source Analyst x1 Est @ -10.16% Est @ -10.16% Est @ -10.16% Est @ -10.16%
Present Value
Discounted (@ 12.96%)
51.17 40.70 32.37 25.75 20.48
Present value of next 5 years cash flows $170.46
NasdaqGS:ARII DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $37.65 × (1 + 2.95%) ÷ (12.96% – 2.95%)
$387.41
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $387.41 ÷ (1 + 12.96%)5
$210.68
NasdaqGS:ARII Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $170.46 + $210.68
$381.14
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $381.14 / 19.08
$19.97
NasdaqGS:ARII Discount to Share Price
Calculation Result
Value per share (USD) From above. $19.97
Current discount Discount to share price of $69.97
= -1 x ($69.97 - $19.97) / $19.97
-250.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of American Railcar Industries is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for American Railcar Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are American Railcar Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ARII PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $7.71
NasdaqGS:ARII Share Price ** NasdaqGS (2018-12-04) in USD $69.97
United States of America Machinery Industry PE Ratio Median Figure of 101 Publicly-Listed Machinery Companies 20.21x
United States of America Market PE Ratio Median Figure of 2,991 Publicly-Listed Companies 17.97x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of American Railcar Industries.

NasdaqGS:ARII PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ARII Share Price ÷ EPS (both in USD)

= 69.97 ÷ 7.71

9.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Railcar Industries is good value based on earnings compared to the US Machinery industry average.
  • American Railcar Industries is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does American Railcar Industries's expected growth come at a high price?
Raw Data
NasdaqGS:ARII PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-41.4%per year
United States of America Machinery Industry PEG Ratio Median Figure of 84 Publicly-Listed Machinery Companies 1.35x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

NasdaqGS:ARII PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.08x ÷ -41.4%

-0.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Railcar Industries earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on American Railcar Industries's assets?
Raw Data
NasdaqGS:ARII PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $35.43
NasdaqGS:ARII Share Price * NasdaqGS (2018-12-04) in USD $69.97
United States of America Machinery Industry PB Ratio Median Figure of 128 Publicly-Listed Machinery Companies 2.5x
United States of America Market PB Ratio Median Figure of 5,007 Publicly-Listed Companies 1.85x
NasdaqGS:ARII PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ARII Share Price ÷ Book Value per Share (both in USD)

= 69.97 ÷ 35.43

1.98x

* Primary Listing of American Railcar Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Railcar Industries is good value based on assets compared to the US Machinery industry average.
X
Value checks
We assess American Railcar Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. American Railcar Industries has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ARII Future Performance

 How is American Railcar Industries expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-41.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is American Railcar Industries expected to grow at an attractive rate?
  • American Railcar Industries's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 3%.
Growth vs Market Checks
  • American Railcar Industries's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • American Railcar Industries's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ARII Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ARII Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -41.4%
NasdaqGS:ARII Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 18.7%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 12.8%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ARII Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ARII Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2019-12-31 580 140 51 4
2018-12-31 472 140 44 5
NasdaqGS:ARII Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 495 131 147
2018-06-30 516 131 143
2018-03-31 478 120 145
2017-12-31 477 132 142
2017-09-30 512 123 53
2017-06-30 536 145 51
2017-03-31 578 165 60
2016-12-31 639 181 73
2016-09-30 733 246 87
2016-06-30 760 232 108
2016-03-31 802 237 121
2015-12-31 889 265 133

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • American Railcar Industries's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • American Railcar Industries's revenue is expected to grow by 18.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ARII Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from American Railcar Industries Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ARII Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2019-12-31 2.66 2.82 2.50 4.00
2018-12-31 2.31 2.36 2.24 3.00
NasdaqGS:ARII Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 7.71
2018-06-30 7.49
2018-03-31 7.58
2017-12-31 7.45
2017-09-30 2.75
2017-06-30 2.68
2017-03-31 3.13
2016-12-31 3.74
2016-09-30 4.42
2016-06-30 5.41
2016-03-31 5.93
2015-12-31 6.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if American Railcar Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess American Railcar Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
American Railcar Industries has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ARII Past Performance

  How has American Railcar Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare American Railcar Industries's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • American Railcar Industries's year on year earnings growth rate has been positive over the past 5 years.
  • American Railcar Industries's 1-year earnings growth exceeds its 5-year average (179.6% vs 4.5%)
  • American Railcar Industries's earnings growth has exceeded the US Machinery industry average in the past year (179.6% vs 26.8%).
Earnings and Revenue History
American Railcar Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from American Railcar Industries Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ARII Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 495.15 147.11 39.16
2018-06-30 515.91 142.89 37.43
2018-03-31 478.40 144.60 36.70
2017-12-31 476.84 142.18 36.89
2017-09-30 511.95 52.61 37.59
2017-06-30 536.17 51.44 34.91
2017-03-31 577.63 60.44 33.19
2016-12-31 639.13 72.66 32.34
2016-09-30 732.52 86.53 31.94
2016-06-30 760.23 108.20 33.12
2016-03-31 801.74 121.27 31.14
2015-12-31 889.34 133.45 30.87
2015-09-30 778.98 120.03 26.41
2015-06-30 769.16 114.49 26.21
2015-03-31 814.67 113.74 27.71
2014-12-31 733.01 99.53 29.42
2014-09-30 779.65 101.18 29.39
2014-06-30 815.70 98.33 28.98
2014-03-31 737.60 89.73 25.83
2013-12-31 750.59 86.90 27.71
2013-09-30 761.09 86.97 28.63
2013-06-30 730.42 80.01 27.83
2013-03-31 725.23 69.76 31.63
2012-12-31 711.72 63.82 26.93
2012-09-30 700.89 44.45 30.56
2012-06-30 658.44 34.46 27.13
2012-03-31 616.14 21.67 24.73
2011-12-31 519.39 4.34 25.05

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • American Railcar Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • American Railcar Industries used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
  • American Railcar Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess American Railcar Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
American Railcar Industries has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ARII Health

 How is American Railcar Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up American Railcar Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • American Railcar Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • American Railcar Industries's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of American Railcar Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from American Railcar Industries Company Filings, last reported 2 months ago.

NasdaqGS:ARII Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 676.08 526.62 74.46
2018-06-30 670.30 532.96 103.77
2018-03-31 669.09 539.30 100.09
2017-12-31 663.53 545.61 100.24
2017-09-30 558.87 552.04 106.18
2017-06-30 557.10 558.42 104.63
2017-03-31 552.51 564.73 158.76
2016-12-31 550.27 570.98 187.53
2016-09-30 547.04 577.42 207.13
2016-06-30 547.38 583.82 199.45
2016-03-31 541.23 590.19 208.08
2015-12-31 536.30 696.54 298.06
2015-09-30 514.95 608.11 128.98
2015-06-30 545.70 614.56 236.28
2015-03-31 520.98 620.99 310.06
2014-12-31 495.42 408.95 88.11
2014-09-30 484.56 311.61 99.45
2014-06-30 469.83 314.26 163.06
2014-03-31 445.71 316.91 154.49
2013-12-31 433.90 194.76 97.25
2013-09-30 414.51 196.42 115.02
2013-06-30 398.57 198.08 93.59
2013-03-31 380.65 149.67 56.00
2012-12-31 369.47 275.00 217.60
2012-09-30 349.73 175.00 99.20
2012-06-30 335.38 275.00 249.65
2012-03-31 322.33 275.00 272.89
2011-12-31 310.17 275.00 307.17
  • American Railcar Industries's level of debt (77.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (47.4% vs 77.9% today).
  • Debt is well covered by operating cash flow (24.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.6x coverage).
X
Financial health checks
We assess American Railcar Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. American Railcar Industries has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ARII Dividends

 What is American Railcar Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.29%
Current annual income from American Railcar Industries dividends.
If you bought $2,000 of American Railcar Industries shares you are expected to receive $46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • American Railcar Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.37%).
  • American Railcar Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.53%).
Upcoming dividend payment

Purchase American Railcar Industries on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ARII Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 78 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1981 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ARII Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2019-12-31
2018-12-31
NasdaqGS:ARII Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-30 1.600 2.284
2018-08-01 1.600 3.322
2018-02-23 1.600 4.077
2017-10-31 1.600 4.063
2017-08-01 1.600 4.308
2017-05-02 1.600 4.336
2017-02-24 1.600 3.847
2016-10-28 1.600 3.597
2016-07-29 1.600 3.959
2016-07-28 1.600 3.974
2016-04-29 1.600 4.052
2016-04-28 1.600 3.844
2016-02-23 1.600 3.849
2016-02-18 1.600 4.055
2015-11-03 1.600 3.395
2015-10-28 1.600 3.054
2015-07-30 1.600 3.947
2015-07-29 1.600 3.697
2015-02-19 1.600 3.123
2015-02-18 1.600 2.878
2014-07-30 1.600 2.579
2014-04-30 1.600 2.457
2014-02-20 1.600 2.358
2014-02-19 1.600 2.999
2013-10-31 1.000 2.207
2013-10-30 1.000 2.480
2013-08-05 1.000 2.641
2013-07-24 1.000 2.797
2013-02-20 1.000 2.699
2012-12-04 1.000 2.873
2011-05-03 0.000 0.000
2011-04-27 0.000 0.000
2011-03-01 0.000 0.000
2011-02-23 0.000 0.000
2010-11-02 0.000 0.000
2010-10-27 0.000 0.000
2010-08-03 0.000 0.000
2010-07-28 0.000 0.000
2010-05-05 0.000 0.000
2010-04-28 0.000 0.000
2010-03-12 0.000 0.000
2010-03-03 0.000 0.000
2009-11-06 0.000 0.000
2009-11-04 0.000 0.000
2009-05-06 0.120 1.308
2009-03-04 0.120 1.471
2008-12-08 0.120 1.315

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of American Railcar Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.8x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess American Railcar Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can American Railcar Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. American Railcar Industries has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ARII Management

 What is the CEO of American Railcar Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John O'Bryan
COMPENSATION $723,037
AGE 52
TENURE AS CEO 0.9 years
CEO Bio

Mr. John R. O’Bryan has been the President and Chief Executive Officer of American Railcar Industries, Inc. since February 5, 2018 after previously serving in those same roles on an Interim basis since January 1, 2018. Mr. O’Bryan previously served as Senior Vice President and Chief Commercial Officer of American Railcar Industries, Inc. from June 2017 to December 2017. Mr. O’Bryan has 29 years of rail industry experience in transportation services, logistics and fleet management. He served as Chief Executive Officer of American Railcar Leasing, LLC between June 2014 and June 2017. From January 2009 to May 2014, Mr. O’Bryan served as President at Mitsui Rail Capital, where he was responsible for strategic leadership and management of all commercial and operating activities. He joined MRC in January 2009. He has over 20 years of rail industry knowledge derived from his experience in transportation services, logistics and fleet management. He served as Chief Operating Officer, Chief Financial Officer and Senior Vice President of Rescar, Inc. He has served in Finance, Marketing, Operations and Sales leadership roles at CSX Corporation, GE Rail Services and Rescar, Inc. Mr. O’Bryan holds an MBA in International Business and Finance from the University of North Florida, a B.S. in Marketing from Jacksonville University, was previously licensed as a CPA in Illinois and completed the Advanced Management Program at The University of Chicago.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • John's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the American Railcar Industries management team in years:

3.8
Average Tenure
50
Average Age
  • The tenure for the American Railcar Industries management team is about average.
Management Team

John O'Bryan

TITLE
President & CEO
COMPENSATION
$723K
AGE
52
TENURE
0.9 yrs

Luke Williams

TITLE
Senior VP
COMPENSATION
$563K
AGE
40
TENURE
2.9 yrs

Yevgeny Fundler

TITLE
Senior VP
COMPENSATION
$671K
AGE
48
TENURE
4.8 yrs

Jackie Pipkin

TITLE
Director of Railcar Manufacturing
AGE
68
TENURE
24.8 yrs

Janet Kniffen

TITLE
Assistant Secretary
Board of Directors Tenure

Average tenure and age of the American Railcar Industries board of directors in years:

4.4
Average Tenure
61
Average Age
  • The tenure for the American Railcar Industries board of directors is about average.
Board of Directors

SungHwan Cho

TITLE
Chairman
AGE
44
TENURE
4.4 yrs

Harold First

TITLE
Independent Director
COMPENSATION
$47K
AGE
81
TENURE
11.9 yrs

Jonathan Frates

TITLE
Director
AGE
35
TENURE
2.8 yrs

James Pontious

TITLE
Independent Director
COMPENSATION
$42K
AGE
79
TENURE
12.9 yrs

Mike Laisure

TITLE
Independent Director
COMPENSATION
$47K
AGE
66
TENURE
12.9 yrs

Michael Nevin

TITLE
Director
AGE
34
TENURE
1.8 yrs

Patricia Agnello

TITLE
Director
AGE
61
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess American Railcar Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. American Railcar Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ARII News

External News
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Simply Wall St News

Should You Be Tempted To Buy American Railcar Industries Inc (NASDAQ:ARII) At Its Current PE Ratio?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … American Railcar Industries Inc (NASDAQ:ARII) is currently trading at a trailing P/E of 6.1, which is lower than the industry average of 21.8. … See our latest analysis for American Railcar Industries

Simply Wall St -

Has American Railcar Industries Inc's (NASDAQ:ARII) Earnings Momentum Changed Recently?

After looking at American Railcar Industries Inc's (NASDAQ:ARII) latest earnings announcement (30 June 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … View our latest analysis for American Railcar Industries? … ARII's trailing twelve-month earnings (from 30 June 2018) of US$142.89m has

Simply Wall St -

Is American Railcar Industries Inc (NASDAQ:ARII) A Smart Choice For Dividend Investors?

In the past 10 years American Railcar Industries Inc (NASDAQ:ARII) has returned an average of 2.00% per year to investors in the form of dividend payouts. … Let's take a look at American Railcar Industries in more detail. … View our latest analysis for American Railcar Industries

Simply Wall St -

How American Railcar Industries Inc (NASDAQ:ARII) Delivered A Better ROE Than Its Industry

and want to better understand how you can grow your money by investing in American Railcar Industries Inc (NASDAQ:ARII). … With an ROE of 21.61%, American Railcar Industries Inc (NASDAQ:ARII) outpaced its own industry which delivered a less exciting 11.36% over the past year. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface

Simply Wall St -

Is American Railcar Industries Inc's (NASDAQ:ARII) PE Ratio A Signal To Buy For Investors?

I am writing today to help inform people who are new to the stock market. … and want to begin learning the link between American Railcar Industries Inc (NASDAQ:ARII)’s fundamentals and stock market performance. … While ARII might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

American Railcar Industries Inc (NASDAQ:ARII): What You Have To Know Before Buying For The Upcoming Dividend

Investors who want to cash in on American Railcar Industries Inc's (NASDAQ:ARII) upcoming dividend of $0.40 per share have only 3 days left to buy the shares before its ex-dividend date, 12 June 2018, in time for dividends payable on the 27 June 2018. … Below, I will explain how holding American Railcar Industries can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

What Do Expectations Tell Us About American Railcar Industries Inc's (NASDAQ:ARII) Margins In The Next Few Years?

Margin Calculation for ARII Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 142.18 Million ÷ 476.84 Million = 29.82% American Railcar Industries's margin has expanded in the past five years, as a result of average net income growth of 17.59% exceeding average revenue growth of 1.57%, which suggests that the company has been able to convert a larger percentage of revenue into net income whilst grow their top line at the same time. … Using American Railcar Industries's margin expectations as a way to understand projections for the future Margins are expected to transition into contraction, with annual revenue growth tipped at 7.29% and earnings expected to fall at -53.17% on an annual basis. … Thus, it is essential to run your own analysis on American Railcar Industries's future expectations whilst maintaining a watchful eye over cost behaviour, because if the business is able to maintain their revenue trajectory, there may be an opportunity to return to positive earnings growth and attractive returns.

Simply Wall St -

Only 3 Days Left To American Railcar Industries Inc (NASDAQ:ARII)’s Ex-Dividend Date, Should You Buy?

On the 23 March 2018, American Railcar Industries Inc (NASDAQ:ARII) will be paying shareholders an upcoming dividend amount of $0.4 per share. … Check out our latest analysis for American Railcar Industries 5 questions I ask before picking a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is their annual yield among the top 25% of dividend payers? … NasdaqGS:ARII Historical Dividend Yield Mar 11th 18 How does American Railcar Industries fare?

Simply Wall St -

Should American Railcar Industries Inc's (NASDAQ:ARII) Recent Earnings Decline Worry You?

Measuring American Railcar Industries Inc's (NASDAQ:ARII) track record of past performance is an insightful exercise for investors. … See our latest analysis for American Railcar Industries How Did ARII's Recent Performance Stack Up Against Its Past? … Though American Railcar Industries's past data is helpful, it is only one aspect of my investment thesis.

Simply Wall St -

Best Dividend Stocks This Month

In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.335 to $0.6. … In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.92 to $1.06. … NYSE:UBA Historical Dividend Yield Dec 8th 17 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.

Simply Wall St -

ARII Company Info

Map
Description

American Railcar Industries, Inc., together with its subsidiaries, designs and manufactures hopper and tank railcars in North America. It operates through three segments: Manufacturing, Railcar Leasing, and Railcar Services. The Manufacturing segment manufactures hopper railcars for shipping various dry bulk products, such as plastic pellets, as well as high-density products, including cement and sand; pressure tank railcars for transporting products comprising chlorine, anhydrous ammonia, liquid propane, and butane; and other types of railcars. This segment also manufactures railcar components, including discharge outlets for hopper railcars, tank railcar components and valves, tank heads, manway covers, wheel pair sets, underframes, outlet components and running boards for industrial and rail customers, and hitches for the intermodal market; and aluminum and special alloy steel castings for the trucking, construction, mining, and oil and gas exploration markets, as well as machined castings and other custom machined products. The Railcar Leasing segment leases hopper and tank railcars. As of December 31, 2017, this segment had a lease fleet of 13,138 railcars. The Railcar Services segment offers railcar services primarily to leasing companies and shippers of specialty hopper and tank railcars. This segment provides repair services consisting of cleaning, interior and exterior coating, repair/rebuilding, non-destructive testing, and engineering for various railcars; engineering and field services through mobile units and mini shops; and sales and administrative, technical, and materials and purchasing support services, as well as licenses intellectual property related to the repair services for railcars. American Railcar Industries, Inc. was founded in 1988 and is headquartered in St. Charles, Missouri.

Details
Name: American Railcar Industries, Inc.
ARII
Exchange: NasdaqGS
Founded: 1988
$1,336,443,976
19,083,878
Website: http://www.americanrailcar.com
Address: American Railcar Industries, Inc.
100 Clark Street,
St. Charles,
Missouri, 63301,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ARII Common Stock Nasdaq Global Select US USD 20. Jan 2006
DB A5E Common Stock Deutsche Boerse AG DE EUR 20. Jan 2006
Number of employees
Current staff
Staff numbers
1,932
American Railcar Industries employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/05 11:50
End of day share price update: 2018/12/04 00:00
Last estimates confirmation: 2018/11/02
Last earnings filing: 2018/10/30
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.