FreightCar America, Inc. (RAIL) AI Stock Analysis

FreightCar America, Inc. specializes in the design, manufacturing, and distribution of railcars and components for transporting bulk commodities and containerized freight across North America. The company operates through two segments: Manufacturing and Parts. Its product lineup includes open top hoppers, covered hopper cars, gondolas, and specialized railcars such as ore hoppers, ballast cars, and intermodal flats. In addition to manufacturing new railcars, FreightCar America sells used railcars, enters into leasing arrangements, and refurbishes or converts existing fleets. It also supplies forged, cast, and fabricated parts, and exports railcars to Latin America and the Middle East for railroads, shippers, and financial institutions.

FreightCar America expanded revenue at a 5-year CAGR of 35.8% from FY2020 to FY2025. Annual revenue grew from $203.1M in FY2021 to $559.4M in FY2024 before decreasing 10.4% to $501.0M in FY2025. Gross margin expanded across this timeframe, rising from 5.6% in FY2021 to 14.6% in FY2025. Operating margin turned positive at 2.9% in FY2023 and reached 6.8% in FY2025. The company delivered net income of $38.1M and diluted EPS of $0.56 in FY2025. Over the trailing twelve months, revenue was $463.5M with an operating margin of -3.8% and EPS of -$0.39. For the latest quarter ended June 30, 2026, quarterly revenue fell 4.6% year-over-year while quarterly earnings declined 24.2%.

As of June 30, 2026, FreightCar America held $63.0M in cash and short-term investments alongside total debt of $144.9M, resulting in net debt of $81.9M. Total assets stood at $276.1M against shareholders' equity of $36.2M, reflecting a debt-to-equity ratio of 4.00 and a current ratio of 1.81. In FY2025, operating cash flow was $34.8M and free cash flow was $31.4M, with capital expenditures of $3.4M. Over the past five years, the company's share count increased by 37.7%.

At a last close of $5.92, FreightCar America has a market cap of $194.1M and an enterprise value of $324.6M. The stock trades at a forward P/E of 8.8x and a price-to-sales ratio of 0.4x, both lower than the median of its US-listed Industrials peers at 17.2x and 1.5x, respectively. However, its EV/EBITDA of 25.2x sits above the peer median of 13.9x, and price-to-book is 6.7x. Over the past year, RAIL shares fell 40.4%, trailing the S&P 500 return of 16.8%. Over five years, the stock gained 37.4% compared to 83.0% for the index.

Wall Street sentiment includes 2 Strong Buy ratings and no Buy, Hold, Sell, or Strong Sell recommendations. The mean price target is $14.67, implying 147.7% upside compared to the last close of $5.92. For the fiscal year ending December 31, 2026, analysts estimate EPS of $0.41, representing an 18.7% decline, on revenue of $445.1M. For the next fiscal year, 3 analysts project EPS to grow 160.7% to $1.06 on revenue of $665.6M. Over the last 4 quarters, the company delivered 1 EPS beat. The next earnings date is November 9, 2026.

This page is an AI-written research summary of FreightCar America, Inc. (RAIL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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