FreightCar America Inc (RAIL) Stock Analysis
Verdict: AVOID
A massive Q3 guidance slash and backlog cancellation expose balance sheet solvency risks from $152M debt and -$107M net equity.
Investment score: 20/100
Analysis as of
Is FreightCar America Inc stock worth reviewing? AI model thesis
The AI model tags RAIL as an AVOID following a 31.37% session plunge triggered by a Q3 top-line shortfall ($75M-$77M vs $118.5M expected) and backlog cancellation. With negative equity of -$107.4M and total debt of $152.4M, financial leverage creates severe downside risk.
7-factor investment score
- Valuation: 25/100 (weight 20%)
- Financial Health: 15/100 (weight 15%)
- Technical Momentum: 10/100 (weight 15%)
- Earnings Quality: 15/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 35/100 (weight 10%)
- Risk-Adjusted Return: 15/100 (weight 15%)
FreightCar America Inc opportunities and risks
What speaks for RAIL
- Aftermarket Platform Expansion
What speaks against RAIL
- Order Backlog Liquidation and Customer Cancellations
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| RAIL | n/a | 0.3x | 16.6x | 12.5% | -2.7% | 13.6% |
| TWIN | 13.0x | 1.0x | 12.9x | 26.9% | 7.1% | 2.5% |
| CNRD | 8.6x | 0.5x | 3.9x | 12.0% | 5.7% | 2.1% |
| MVST | 3.1x | 0.5x | 2.6x | 25.1% | 13.9% | -13.9% |
| SOM.L | 15.9x | 2.1x | 8.8x | 52.0% | 14.6% | 9.6% |
| CVGI | n/a | 0.2x | 15.9x | 11.2% | -3.4% | -0.3% |
| Peer median | 8.6x | 0.5x | 8.8x | 25.1% | 7.1% | 2.1% |
Frequently asked questions about FreightCar America Inc (RAIL)
Is RAIL stock a good investment?
The cached TradeMates AI model rates FreightCar America Inc as AVOID with an investment score of 20/100. The AI model tags RAIL as an AVOID following a 31.37% session plunge triggered by a Q3 top-line shortfall ($75M-$77M vs $118.5M expected) and backlog cancellation. With negative equity of -$107.4M and total debt of $152.4M, financial leverage creates severe downside risk. This is algorithmic model output, not personal investment advice.
Is RAIL stock a buy?
The TradeMates model verdict for RAIL is AVOID with an investment score of 20/100. Treat this as a model signal to review, not a personal buy recommendation.