FreightCar America, Inc. (NASDAQ: RAIL)

Sector: Industrials Industry: Railroads CIK: 0001320854
Market Cap 447.21 Mn
P/B -4.92
P/E 5.01
P/S 0.87
ROIC (Qtr) 57.37
Div Yield % 0.00
Rev 1y % (Qtr) 41.73
Total Debt (Qtr) 152.31 Mn
Debt/Equity (Qtr) -1.68
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About

Investment thesis

Bull case

  • Healthy cash reserves of 62.74M provide 15.11x coverage of short-term debt 4.15M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 340.76M provide exceptional 673.43x coverage of deferred revenue 506000, showing strong service capability backing.
  • Robust free cash flow of 27.23M exceeds capital expenditure of 3.39M by 8.03x, indicating strong organic growth funding capability.
  • Operating cash flow of 30.62M provides strong 60.51x coverage of deferred revenue 506000, indicating service delivery capability.
  • Cash reserves of 62.74M provide ample 107.25x coverage of acquisition spending 585000, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of 30.62M barely covers its investment activities of (2.81M), with a coverage ratio of -10.92, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 30.62M provides thin coverage of dividend payments of (27.86M) with a -1.10 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 30.62M provides minimal -0.63x coverage of tax expenses of (48.49M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of 30.62M barely covers operating expenses of (328000) with a -93.35 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Other non-current liabilities of 150.12M represent a high 0.44x of tangible assets 340.76M, suggesting significant long-term obligations without clear asset backing.

Segments Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Railroads
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 UNP Union Pacific Corp 156.32 Bn 21.90 6.38 32.55 Bn
2 NSC Norfolk Southern Corp 98.17 Bn 49.09 8.45 17.09 Bn
3 CP Canadian Pacific Kansas City Ltd/Cn 77.60 Bn 25.11 7.13 17.31 Bn
4 CSX Csx Corp 76.97 Bn 26.64 5.46 18.87 Bn
5 CNI Canadian National Railway Co 67.54 Bn 19.60 5.35 15.71 Bn
6 WAB Westinghouse Air Brake Technologies Corp 44.42 Bn 37.97 3.98 5.54 Bn
7 TRN Trinity Industries Inc 2.81 Bn 29.44 1.29 5.94 Bn
8 GBX Greenbrier Companies Inc 0.96 Bn -16.79 0.84 1.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.58 1.36
EV to Cash from Ops. EV/CFO 17.58 16.53
EV to Debt EV to Debt 3.53 2.59
EV to EBIT EV/EBIT 9.75 7.63
EV to EBITDA EV/EBITDA 11.37 18.51
EV to Free Cash Flow [EV/FCF] EV/FCF 19.76 28.00
EV to Market Cap EV to Market Cap 1.20 1.04
EV to Revenue EV/Rev 1.05 2.75
Price to Book Value [P/B] P/B -4.92 3.50
Price to Earnings [P/E] P/E 5.01 21.48
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.21 2.51
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 22.50
Dividend per Basic Share Div per Share (Qtr) 0.00 1.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 15.26
Interest Coverage Int. cover (Qtr) 3.84 0.60
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 54.69 -6.16
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 39.96 35.27
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 3.76
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 214.87 17.20
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 36.71 -15.55
EBIT Growth (1y) % EBIT 1y % (Qtr) 154.39 18.03
EBT Growth (1y) % EBT 1y % (Qtr) 137.33 15.09
EPS Growth (1y) % EPS 1y % (Qtr) 161.94 15.15
FCF Growth (1y) % FCF 1y % (Qtr) -56.60 426.49
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 33.21 -4.94
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.51 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.82 0.16
Cash Ratio Cash Ratio (Qtr) 0.47 0.90
Current Ratio Curr Ratio (Qtr) 1.67 1.61
Debt to Equity Ratio Debt/Equity (Qtr) -1.68 1.04
Interest Cover Ratio Int Coverage (Qtr) 3.84 0.60
Times Interest Earned Times Interest Earned (Qtr) 3.84 0.60
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.60 -101.68
EBIT Margin % EBIT Margin % (Qtr) 10.76 -107.52
EBT Margin % EBT Margin % (Qtr) 7.95 -114.27
Gross Margin % Gross Margin % (Qtr) 15.10 37.55
Net Profit Margin % Net Margin % (Qtr) 17.40 -117.34