Freightcar America Valuation
| RAIL Stock | USD 6.24 0.19 2.95% |
At this time, the firm appears to be undervalued. Freightcar America shows a prevailing Real Value of $8.48 per share. The current price of the firm is $6.24. Our model computes the value of Freightcar America from reviewing the firm fundamentals such as Current Valuation of 236.91 M, profit margin of (0.14) %, and Shares Outstanding of 19.06 M as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Freightcar America's valuation include:
Price Book 3.1742 | Enterprise Value | Enterprise Value Ebitda 19.2074 | Price Sales 0.2191 | Forward PE 8.9206 |
Undervalued
Today
Please note that Freightcar America's price fluctuation is slightly risky at this time. Calculation of the real value of Freightcar America is based on 3 months time horizon. Increasing Freightcar America's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Freightcar stock is determined by what a typical buyer is willing to pay for full or partial control of Freightcar America. Since Freightcar America is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Freightcar Stock. However, Freightcar America's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 6.24 | Real 8.48 | Target 14.88 | Hype 6.19 | Naive 7.03 |
The intrinsic value of Freightcar America's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Freightcar America's stock price.
Estimating the potential upside or downside of Freightcar America helps investors to forecast how Freightcar stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Freightcar America more accurately as focusing exclusively on Freightcar America's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Freightcar America's intrinsic value based on its ongoing forecasts of Freightcar America's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Freightcar America's closest peers.
Freightcar America Cash |
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Freightcar Valuation Trend
Knowing Freightcar America's actual value is paramount for traders when making sound investment determinations. Using both Freightcar America's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Freightcar America Total Value Analysis
Freightcar America is at this time forecasted to have valuation of 236.91 M with market capitalization of 122.56 M, debt of 53.45 M, and cash on hands of 17.6 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Freightcar America fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
236.91 M | 122.56 M | 53.45 M | 17.6 M |
Freightcar America Investor Information
About 27.0% of the company outstanding shares are owned by corporate insiders. The company has Price/Earnings (P/E) ratio of 645.0. Freightcar America recorded a loss per share of 3.12. The entity last dividend was issued on the 15th of August 2017. The firm had 1:200 split on the April 17, 2009. Based on the key measurements obtained from Freightcar America's financial statements, Freightcar America is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in April.Freightcar America Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Freightcar America has an asset utilization ratio of 249.5 percent. This suggests that the Company is making $2.5 for each dollar of assets. An increasing asset utilization means that Freightcar America is more efficient with each dollar of assets it utilizes for everyday operations.Freightcar America Ownership Allocation
Freightcar America holds a total of 19.06 Million outstanding shares. Freightcar America retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Freightcar America Profitability Analysis
The company reported the previous year's revenue of 559.42 M. Net Loss for the year was (75.82 M) with profit before overhead, payroll, taxes, and interest of 67.04 M.About Freightcar America Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Freightcar America. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Freightcar America based exclusively on its fundamental and basic technical indicators. By analyzing Freightcar America's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Freightcar America's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Freightcar America. We calculate exposure to Freightcar America's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Freightcar America's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 67 M | 70.4 M | |
| Pretax Profit Margin | (0.13) | (0.13) | |
| Operating Profit Margin | 0.07 | 0.07 | |
| Net Loss | (0.14) | (0.14) | |
| Gross Profit Margin | 0.12 | 0.07 |
Freightcar America Growth Indicators
Investing in growth stocks can be very risky. If the company such as Freightcar America does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 30.7 M | |
| Forward Price Earnings | 8.9206 |
Freightcar America Current Valuation Indicators
Freightcar America's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Freightcar America's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Freightcar America, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Freightcar America's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Freightcar America's worth.When determining whether Freightcar America is a strong investment it is important to analyze Freightcar America's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Freightcar America's future performance. For an informed investment choice regarding Freightcar Stock, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Freightcar America. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. For more information on how to buy Freightcar Stock please use our How to buy in Freightcar Stock guide.You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Freightcar America. If investors know Freightcar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Freightcar America listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (3.12) | Revenue Per Share | Quarterly Revenue Growth 0.088 | Return On Assets | Return On Equity |
The market value of Freightcar America is measured differently than its book value, which is the value of Freightcar that is recorded on the company's balance sheet. Investors also form their own opinion of Freightcar America's value that differs from its market value or its book value, called intrinsic value, which is Freightcar America's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Freightcar America's market value can be influenced by many factors that don't directly affect Freightcar America's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Freightcar America's value and its price as these two are different measures arrived at by different means. Investors typically determine if Freightcar America is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Freightcar America's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.