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FreightCar America, Inc (RAIL) Fair Value & Analysis

Industrials · US · Market cap $176M

FA FreightCar America, Inc logo FreightCar America, Inc RAIL · US
Price$7.94
Fair Value$17.90
Upside+125.4%
Quality41/100
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Mixed Growth
Thin margins · 6.3% net margin
Negative equity (buybacks among others) · generates free cash flow
Mixed vs. peers (7/13)
Narrow moat 29/100
Evidence: High Range $11.55 – $25.65 Share as image

Fair value as of: Jul 24, 2026

From 20 valuation models · updated 18 days ago

Share price −2.6% over the past month.

Below-average quality, screening 125% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case ($11.55). The market is more pessimistic than our downside scenario.
  • A fairly wide model range ($11.55 to $25.65) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$15.71 $2.27 Fair Value $17.90 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range $2.27 – $15.71 · fair‑value band $11.55 – $25.65 · the $7.94 price screens below the $17.90 fair value. Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

FreightCar America, Inc (RAIL) currently trades at $7.94, while our model-based Fair Value estimate is $17.90, implying the stock looks roughly 125.4% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, FreightCar America, Inc generated revenue of $469M at a net margin of 6.3%. Revenue declined 33.2% year over year. It earns a return on equity of -8.8%. Net debt stands at $88.1M. Fundamentals as of Jul 24, 2026

Our scenario range runs from $11.55 (bear case) to $25.65 (bull case); at $7.94, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 47% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -28% fair-value upside, at 125%, RAIL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $11.24 $14.66 $18.42 80
Rev-Margin DCF $12.30 $19.28 $26.74 74
ROIC Compounder $9.66 $11.03 $12.14 72
All 20 models by family
DCF Models
FCF DCF $11.09 $14.86 $19.20 38
Owner Earnings $14.99 $19.91 $25.56 31
5Y Revenue Exit $12.30 $19.09 $27.40 39
5Y EBITDA Exit $13.80 $21.76 $30.56 41
5Y P/E Exit $19.00 $30.95 $42.80 38
10Y Revenue Exit $11.27 $16.60 $23.07 36
10Y EBITDA Exit $12.41 $18.13 $25.03 37
10Y P/E Exit $15.19 $23.43 $32.61 35
Earnings-Based
Graham-Dodd $13.54 $31.11 $39.91 54
PEG = 1.0 $5.21 $7.45 $9.68 46
EPV $9.66 $11.03 $12.14 59
Multiples
P/E Multiple $31.36 $41.81 $52.27 63
P/S Multiple $25.39 $33.85 $42.31 58
EV/EBIT $20.86 $28.40 $35.93 53
EV/EBITDA $18.71 $25.52 $32.34 54
EV/Revenue $14.39 $21.31 $28.22 43
Growth DCF
Growth DCF $11.24 $14.66 $18.42 80
Rev-Margin DCF $12.30 $19.28 $26.74 74
Economic Profit
ROIC Compounder $9.66 $11.03 $12.14 72
Growth Earnings
Growth-Adj P/E $23.58 $33.69 $43.80 68

Widest divergence: Growth Earnings ($33.69) versus Earnings-Based ($11.03). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $469M
Revenue growth (YoY) -33.2%
Net margin 6.3%
Return on equity -8.8%
Free cash flow $31.4M FY2025
P/E ratio 12.8
More key figures
Operating margin -0.9%
EPS (TTM) $0.7200
EPS growth (YoY) -24.2%
Net debt $88.1M FY2025

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 44 · Market factors (momentum, volatility) 16

Profitability 66
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 12
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

FreightCar America, Inc reported revenue of $501M in FY2025 versus $203M in FY2021, a compound +25.3%/yr. Reported net income was $38.1M in FY2025.

Growth Quality 79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$501M
Latest YoY
−10.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+35.8%
Avg. growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.7%
Revenue +25.3%/yr
FY21 $203M
FY22 $365M
FY23 $358M
FY24 $559M
FY25 $501M
Net income
FY21 −$41.4M
FY22 −$38.8M
FY23 −$23.6M
FY24 −$75.8M
FY25 $38.1M

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Cite: Fair Value Calculator (2026). "FreightCar America, Inc Fair Value". https://www.fairvalue-calculator.com/stock/RAIL

Peer Group

Railroads · 112 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 41 · Bottom 25%
Fair Value upside +125% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 6% · Below median
Operating margin (TTM) -1% · Bottom 25%
Revenue growth -33% · Bottom 25%

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 12.8× · Cheaper than median
P/S (TTM) 0.38× · Cheaper than 75% of peers
P/FCF 5.6× · Pricier than median
EV/EBITDA 5.9× · Cheaper than median
PEG 0.64× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 27
FUTURE 0 · sector 19
PAST 0 · sector 31
HEALTH 100 · sector 88
DIVIDEND 0 · sector 41

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Railroads stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNI $128.22 $92.63 -28%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is FreightCar America, Inc (RAIL) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of $17.90 versus a price of $7.94, about +125% (undervalued).
What is the fair value of RAIL?
Our model-based fair value for FreightCar America, Inc is $17.90 (as of Jul 24, 2026), built from audited fundamentals. The current price is $7.94.
What is the quality score of RAIL?
FreightCar America, Inc has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of FreightCar America, Inc (RAIL)?
FreightCar America, Inc reported trailing-twelve-month revenue of about $469M (latest available figure, as of Jul 24, 2026).
What is the net profit margin of RAIL?
The net profit margin of FreightCar America, Inc is about 6.3%, meaning it keeps roughly 6.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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