Freightcar America Inc logo

Freightcar America Inc(RAIL)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$6.9
10/02/2026
(24-hour delay)

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*as per simulation (see disclosures)
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Upturn Advisory & Investor View for RAIL

10/02/2026: RAIL (1-star) is currently NOT-A-BUY. Pass it for now.

Freightcar America Inc is a North American manufacturer specializing in freight cars, including hoppers and flat cars, for the rail industry. The company is known for its focus on aluminum-bodied railcar designs and has recently optimized its manufacturing footprint to improve cost efficiency. Its primary growth story revolves around the long-term replacement cycle of the aging North American rail fleet. However, the company faces significant execution risks, including cyclical demand volatility, competition from larger manufacturing rivals, and vulnerability to commodity price fluctuations. The stock may best suit investors comfortable with industrial cyclicality who are monitoring the company's ability to maintain margins and secure recurring aftermarket revenue.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorWeak fitThe company's growth is heavily tied to cyclical industrial demand rather than consistent high-growth trends.
Momentum investorMixed fitMomentum fit is conditional on positive industry-wide demand upturns and sustained contract wins.
Value investorMixed fitValue suitability depends on the stock's pricing relative to book value and recovery potential during industrial cycles.
Dividend investorWeak fitThe company does not currently offer a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorWeak fitHigh cyclicality and industry volatility make this a higher-risk equity holding.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is susceptible to sharp price swings driven by industrial production cycles.
Valuation riskMediumInvestors face risk if market expectations for railcar orders do not materialize.
Competition risk (Railcar Manufacturing)HighLarger competitors possess scale advantages that can pressure margins and pricing power.
Business qualityMediumThe capital-intensive nature of the business requires strong execution to maintain consistent profitability.
Dividend incomeLow / noneThere is no dividend income associated with this stock.
Execution riskMedium / highSuccessful management of the Mexican manufacturing footprint is critical to maintaining cost competitiveness.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit 38.38%
Avg. Invested days 30
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/02/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
RAIL receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
RAIL has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+150.3%) and solid cash generation (FCF margin 6.3%) are partially offset by negative revenue growth (-10.4%), soft profitability (net margin 7.6%).

Financial Health Rating

★★★★★
RAIL's financial health is supported by solid cash strength, including free-cash-flow generation (6.3% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is RAIL's strongest growth driver at +150.3% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (-10.4%, negative) and free-cash-flow growth (-21.3%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 30.3% and approximately 85.9% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 13.90% supports management-shareholder alignment.

Top 5 Institutional Investors

Allianz Asset Management AG 4.72%
BlackRock Inc 2.92%
Vanguard Capital Management, LLC 1.75%
Kennedy Capital Management Inc 1.50%
Marshall Wace Asset Management Ltd 1.36%

Unit Economics (Per $1K Revenue)

★★★★★
RAIL generates approximately $146 of gross profit, $68 of operating income, and $63 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Soft margins explain the 2-star rating, with soft cash conversion and strong capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: 450.48%

Quantitative Style Profile

★★★★★
RAIL has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 226.26M USD
Price to earnings Ratio -
1Y Target Price 14.67
Price to earnings Ratio -
1Y Target Price 14.67
Volume (30-day avg) 246.5K shares
Beta 1.46
52 Weeks Range 6.35 - 14.90
Updated Date 10/02/2026
52 Weeks Range 6.35 - 14.90
Updated Date 10/02/2026
Dividends yield (FY) -
Basic EPS (TTM) -0.38

How Company Makes Money

Business areaWhat it includesRetail investor read
New Railcar ManufacturingProduction of aluminum and steel hopper cars, and flat cars.The company makes the most money when rail companies order new cars to replace old ones.
Aftermarket Parts and RepairsReplacement components and railcar maintenance services.Provides recurring revenue by keeping existing freight car fleets operational.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE -
Forward PE 8.76
Enterprise Value 324.60M
Price to Sales(TTM) 0.49
Enterprise Value 324.60M
Price to Sales(TTM) 0.49
Enterprise Value to Revenue 0.7
Enterprise Value to EBITDA 25.23
Shares Outstanding 32.79M
Shares Floating 28.16M
Shares Outstanding 32.79M
Shares Floating 28.16M
Percent Insiders 13.9
Percent Institutions 30.27

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Freightcar America Inc

Exchange NASDAQ
Headquarters Chicago, IL, United States
IPO Launch date 2005-04-06
President, CEO & Director Mr. Nicholas J. Randall
Sector Industrials
Industry Railroads
Full time employees 1986
Full time employees 1986

FreightCar America, Inc., through its subsidiaries, designs, manufactures, and sells railcars and railcar components for the transportation of bulk commodities and containerized freight products in the United States and Mexico. The company operates through two segments: Manufacturing and Aftermarket. It offers a range of railcars, including boxcars, covered and open-top hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars, coal cars, dynastack series, steel products, boxcars, aluminum coal cars, stainless steel and hybrid stainless steel cars, and other railcar types, as well as other supplies for all railcar types, and provides aftermarket services including safety training, railcar inspections, and preventative maintenance. The company also sells used railcars; rebuilds, converts, and leases railcars; and sells forged, cast, and fabricated parts for various railcars. It serves shippers, railroads, and financial institutions. FreightCar America, Inc. was founded in 1901 and is headquartered in Chicago, Illinois.