NasdaqGS:RAIL

Stock Analysis Report

Executive Summary

FreightCar America, Inc., through its subsidiaries, designs, manufactures, and sells railcars for the transportation of bulk commodities and containerized freight products primarily in North America.

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap ($23M)



Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

How has FreightCar America's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAIL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.1%

RAIL

-1.7%

US Machinery

-0.09%

US Market


1 Year Return

-76.4%

RAIL

20.1%

US Machinery

23.9%

US Market

Return vs Industry: RAIL underperformed the US Machinery industry which returned 22.4% over the past year.

Return vs Market: RAIL underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

RAILIndustryMarket
7 Day-6.1%-1.7%-0.09%
30 Day-22.5%-0.9%3.1%
90 Day-60.1%5.0%10.4%
1 Year-76.4%-76.4%22.4%20.1%26.6%23.9%
3 Year-88.4%-88.6%39.3%30.3%50.9%41.2%
5 Year-92.4%-92.8%77.6%56.2%78.1%58.5%

Price Volatility Vs. Market

How volatile is FreightCar America's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FreightCar America undervalued compared to its fair value and its price relative to the market?

0.17x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RAIL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RAIL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RAIL is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: RAIL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RAIL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RAIL is good value based on its PB Ratio (0.2x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is FreightCar America forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

103.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAIL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RAIL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RAIL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RAIL's revenue is expected to decline over the next 3 years (-1.9% per year).

High Growth Revenue: RAIL's revenue is forecast to decline over the next 3 years (-1.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RAIL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has FreightCar America performed over the past 5 years?

-64.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAIL is currently unprofitable.

Growing Profit Margin: RAIL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RAIL is unprofitable, and losses have increased over the past 5 years at a rate of -64.7% per year.

Accelerating Growth: Unable to compare RAIL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RAIL is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (9.6%).


Return on Equity

High ROE: RAIL has a negative Return on Equity (-70.79%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FreightCar America's financial position?


Financial Position Analysis

Short Term Liabilities: RAIL's short term assets ($132.0M) exceed its short term liabilities ($61.7M).

Long Term Liabilities: RAIL's short term assets ($132.0M) exceed its long term liabilities ($98.6M).


Debt to Equity History and Analysis

Debt Level: RAIL's debt to equity ratio (7.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RAIL's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: RAIL has a high level of physical assets or inventory.

Debt Coverage by Assets: RAIL's debt is covered by short term assets (assets are 12.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RAIL has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: RAIL has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -40.8% each year


Next Steps

Dividend

What is FreightCar America's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RAIL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RAIL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RAIL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RAIL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RAIL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RAIL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of FreightCar America's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Jim Meyer (57yo)

2.5yrs

Tenure

US$1,061,377

Compensation

Mr. James R. Meyer, also known as Jim, has been Chief Executive Officer and President at FreightCar America, Inc. since July 31, 2017. Mr. Meyer served as the Chief Operating Officer of REV Group, Inc. (al ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.06M) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: RAIL's management team is considered experienced (3 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

69.5yo

Average Age

Experienced Board: RAIL's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$50,93631 May 19
Christopher Eppel
EntityIndividual
Role
Chief Financial Officer
VP of Finance
Shares8,468
Max PriceUS$6.02
BuyUS$12,41721 May 19
Thomas Madden
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$6.21
BuyUS$25,38517 May 19
Malcolm Moore
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$6.35
BuyUS$50,55314 May 19
James Cirar
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$6.40
BuyUS$61,20009 May 19
James Meyer
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$6.12
BuyUS$59,60608 May 19
William Gehl
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares9,200
Max PriceUS$6.59
BuyUS$4,88008 May 19
William Gehl
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares800
Max PriceUS$6.10

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Joseph Maliekel (58yo)

    Vice President & Corporate Controller

    • Tenure: 7.7yrs
  • Greg Josephson

    Vice President of New Product Development

    • Tenure: 6.3yrs
  • Chris Eppel (53yo)

    VP of Finance

    • Tenure: 0.8yrs
  • Steve Cianci

    Senior Vice President of Railcar Sales & Marketing

    • Tenure: 0.6yrs
  • Georgia Vlamis (59yo)

    VP of Human Resources

    • Tenure: 4.1yrs
    • Compensation: US$369.48k
  • Howard Broadfoot

    Vice President of Manufacturing - Shoals

    • Tenure: 3.6yrs
  • Jim Meyer (57yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$1.06m
  • Dan Wallace

    VP & GM of Leasing

    • Tenure: 1.4yrs
  • Mike Cieslak

    Head of Financial Planning & Analysis and Investor Relations


    Board Members

    • Andrew Schmitt (70yo)

      Independent Director

      • Tenure: 7.3yrs
      • Compensation: US$111.00k
    • Bill Gehl (72yo)

      Non-Executive Chairman

      • Tenure: 7yrs
      • Compensation: US$174.00k
    • Thomas Madden (66yo)

      Independent Director

      • Tenure: 14.1yrs
      • Compensation: US$113.64k
    • Mac Moore (69yo)

      Independent Director

      • Tenure: 4.8yrs
      • Compensation: US$111.00k
    • James Cirar (72yo)

      Independent Director

      • Tenure: 20.6yrs
      • Compensation: US$104.00k
    • Jim Meyer (57yo)

      President

      • Tenure: 2.5yrs
      • Compensation: US$1.06m
    • Elizabeth Arnold

      Director

      • Tenure: 0.4yrs

    Company Information

    FreightCar America, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: FreightCar America, Inc.
    • Ticker: RAIL
    • Exchange: NasdaqGS
    • Founded: 1901
    • Industry: Construction Machinery and Heavy Trucks
    • Sector: Capital Goods
    • Market Cap: US$21.442m
    • Shares outstanding: 12.69m
    • Website: https://www.freightcaramerica.com

    Number of Employees


    Location

    • FreightCar America, Inc.
    • Two North Riverside Plaza
    • Suite 1300
    • Chicago
    • Illinois
    • 60606
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    RAILNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2005
    FARDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2005

    Biography

    FreightCar America, Inc., through its subsidiaries, designs, manufactures, and sells railcars for the transportation of bulk commodities and containerized freight products primarily in North America. It operates through two segments, Manufacturing and Parts. The company offers a range of freight cars, including open top hoppers, covered hoppers, and gondolas; intermodal flats, such as well cars; and non-intermodal flat cars comprising slab, hot slab, ribbon rail, and bulkhead flats. It also provides stainless steel and hybrid stainless steel, and aluminum-bodied railcars, such as coal cars; and mill gondolas, coil gondolas, triple hoppers, ore hoppers and gondola railcars, ballast hopper cars, aggregate hopper cars, boxcars, woodchip hoppers, aluminum vehicle carriers, intermodal doublestack railcars, and articulated bulk container railcars. In addition, the company sells used railcars; leases, and 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 railroads, shippers, and financial institutions. FreightCar America, Inc. was founded in 1901 and is headquartered in Chicago, Illinois. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 00:22
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.