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FreightCar America, Inc. (RAIL) Fundamental Analysis & AI Grade 2026

RAIL Nasdaq Railroad Equipment DE CIK: 0001320854
Updated This Month • Analysis: May 6, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
95% Confidence
N/A
D
95% Conf
Pending
Analysis scheduled

📊 RAIL Key Takeaways

Revenue: $64.3M
Net Margin: 63.3%
Free Cash Flow: $-4.5M
Current Ratio: 1.81x
Debt/Equity: N/A
EPS: $1.15
AI Grade: D with 95% confidence
FreightCar America, Inc. (RAIL) receives a D fundamental grade with 95% confidence from our AI analysis based on SEC 10-K filings. With revenue of $64.3M, net profit margin of 63.3%, FreightCar America, Inc. demonstrates mixed fundamentals in the Industrial sector. Below is our complete RAIL stock analysis for 2026.

Is FreightCar America, Inc. (RAIL) a Good Investment?

Claude

FreightCar America faces severe financial distress with negative stockholders' equity (-$65.3M), negative operating cash flow (-$4.3M), and unprofitable core operations. The positive net income appears to be a non-operating accounting artifact, as the company is burning cash operationally while carrying $353.3M in liabilities against only $288.0M in assets.

FreightCar America, Inc. Key Strengths (RAIL)

Claude
  • + Current ratio of 1.81x provides near-term liquidity runway
  • + $52.8M cash position offers limited operational cushion
  • + Minimal revenue decline (0.1% YoY) suggests some market stability in railroad equipment sector

RAIL Stock Risks: FreightCar America, Inc. Investment Risks

Claude
  • ! Negative stockholders' equity ($-65.3M) indicates technical insolvency on balance sheet
  • ! Negative operating cash flow and free cash flow (-$4.3M, -$4.5M) show unsustainable core business model
  • ! Operating margin of -0.9% reveals unprofitable operations; positive net income is non-recurring and artificially inflated
  • ! Negative interest coverage ratio (-0.9x) means company cannot service debt from operations
  • ! Liabilities exceed assets ($353.3M vs $288.0M); deteriorating solvency position
  • ! Stagnant revenue growth (0.1% YoY) with no business momentum to support debt obligations
  • ! High debt burden ($101.0M long-term debt) on weakening balance sheet with limited repayment capacity

Key Metrics to Watch

Claude
  • * Operating Cash Flow - must return to positive to validate business sustainability
  • * Stockholders Equity - critical inflection if it stabilizes or continues deteriorating
  • * Interest Coverage Ratio - must improve substantially to demonstrate debt service capability
  • * Cash Balance - watch depletion rate given negative operating cash flow
  • * Free Cash Flow and Liabilities-to-Assets Ratio - key solvency indicators

FreightCar America, Inc. (RAIL) Financial Metrics & Key Ratios

Revenue
$64.3M
Net Income
$40.7M
EPS (Diluted)
$1.15
Free Cash Flow
$-4.5M
Total Assets
$288.0M
Cash Position
$52.8M

💡 AI Analyst Insight

FreightCar America, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

RAIL Profit Margin, ROE & Profitability Analysis

Gross Margin 16.8%
Operating Margin -0.9%
Net Margin 63.3%
ROE N/A
ROA 14.1%
FCF Margin -6.9%

RAIL vs Industrial Sector: How FreightCar America, Inc. Compares

How FreightCar America, Inc. compares to Industrial sector averages

Net Margin
RAIL 63.3%
vs
Sector Avg 10.0%
RAIL Sector
ROE
RAIL 0.0%
vs
Sector Avg 15.0%
RAIL Sector
Current Ratio
RAIL 1.8x
vs
Sector Avg 1.8x
RAIL Sector
Debt/Equity
RAIL 0.0x
vs
Sector Avg 0.7x
RAIL Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is FreightCar America, Inc. Stock Overvalued? RAIL Valuation Analysis 2026

Based on fundamental analysis, FreightCar America, Inc. has mixed fundamental signals relative to the Industrial sector in 2026.

Return on Equity
N/A
Sector avg: 15%
Net Profit Margin
63.3%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

FreightCar America, Inc. Balance Sheet: RAIL Debt, Cash & Liquidity

Current Ratio
1.81x
Quick Ratio
0.92x
Debt/Equity
N/A
Debt/Assets
122.7%
Interest Coverage
-0.89x
Long-term Debt
$101.0M

RAIL Revenue & Earnings Growth: 5-Year Financial Trend

RAIL 5-year financial data: Year 2021: Revenue $199.8M, Net Income -$84.4M, EPS $-6.29. Year 2022: Revenue $361.5M, Net Income N/A, EPS $-2.00. Year 2023: Revenue $361.5M, Net Income N/A, EPS $-1.56. Year 2024: Revenue $557.7M, Net Income N/A, EPS $-1.18. Year 2025: Revenue $557.7M, Net Income N/A, EPS $-3.12.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: FreightCar America, Inc.'s revenue has grown significantly by 179% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.12 indicates the company is currently unprofitable.

RAIL Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-6.9%
Free cash flow / Revenue

RAIL Quarterly Earnings & Performance

Quarterly financial performance data for FreightCar America, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $113.2M -$7.4M $-0.23
Q2 2025 $118.5M -$3.4M $0.11
Q1 2025 $96.2M -$11.6M $-0.54
Q3 2024 $61.7M $3.2M $-0.03
Q2 2024 $88.2M -$3.4M $0.11
Q1 2024 $80.4M -$5.0M $-0.19
Q3 2023 $61.7M $3.2M $-0.03
Q2 2023 $56.0M -$11.3M $-0.47

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

FreightCar America, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$4.3M
Cash generated from operations
Capital Expenditures
$147.0K
Investment in assets
Dividends
None
No dividend program

RAIL SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for FreightCar America, Inc. (CIK: 0001320854)

📋 Recent SEC Filings

Date Form Document Action
May 18, 2026 4 xslF345X06/ownership.xml View →
May 18, 2026 4 xslF345X06/ownership.xml View →
May 18, 2026 4 xslF345X06/ownership.xml View →
May 18, 2026 4 xslF345X06/ownership.xml View →
May 18, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about RAIL

What is the AI rating for RAIL?

FreightCar America, Inc. (RAIL) has an AI grade of D with 95% confidence, based on fundamental analysis of SEC EDGAR filings.

What are RAIL's key strengths?

Claude: Current ratio of 1.81x provides near-term liquidity runway. $52.8M cash position offers limited operational cushion.

What are the risks of investing in RAIL?

Claude: Negative stockholders' equity ($-65.3M) indicates technical insolvency on balance sheet. Negative operating cash flow and free cash flow (-$4.3M, -$4.5M) show unsustainable core business model.

What is RAIL's revenue and growth?

FreightCar America, Inc. reported revenue of $64.3M.

Does RAIL pay dividends?

FreightCar America, Inc. does not currently pay dividends.

Where can I find RAIL SEC filings?

Official SEC filings for FreightCar America, Inc. (CIK: 0001320854) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is RAIL's EPS?

FreightCar America, Inc. has a diluted EPS of $1.15.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is RAIL's fundamental grade?

Based on our AI fundamental analysis in May 2026, FreightCar America, Inc. has a D grade with 95% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is RAIL stock overvalued or undervalued?

Valuation metrics for RAIL: ROE of N/A (sector avg: 15%), net margin of 63.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

What is RAIL's AI grade for 2026?

Our dual AI analysis gives FreightCar America, Inc. a combined D grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is RAIL's free cash flow?

FreightCar America, Inc.'s operating cash flow is $-4.3M, with capital expenditures of $147.0K. FCF margin is -6.9%.

How does RAIL compare to other Industrial stocks?

Vs Industrial sector averages: Net margin 63.3% (avg: 10%), ROE N/A (avg: 15%), current ratio 1.81 (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 6, 2026 | Data as of: 2026-03-31 | Powered by Claude AI