FreightCar America, Inc. (RAIL) is a Railroads company in the Industrials sector, currently trading at $9.41. It has a SharesGrow Score of 45/100, indicating a mixed investment profile with 1 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of RAIL = $13.43 (+42.7% from the current price, the stock appears undervalued).
Valuation: RAIL trades at a trailing Price-to-Earnings (P/E) of 7.2 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 0.08.
Financials: revenue is $501M, +14.7%/yr average growth. Net income is $38M, growing at -10.6%/yr. Net profit margin is 7.6% (thin). Gross margin is 14.6% (+7.5 pp trend).
Balance sheet: total debt is $152M with negative equity of -$107M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 1.87 (strong liquidity). Debt-to-assets is 52.5%. Total assets: $290M.
Analyst outlook: 1 / 13 analysts rate RAIL as buy (8%) — mixed sentiment.
SharesGrow 7-Criteria breakdown: Value 100/100 (Pass), Growth 48/100 (Partial), Past 25/100 (Fail), Health 50/100 (Partial), Moat 30/100 (Fail), Future 20/100 (Fail), Income 45/100 (Partial).
