Freightcar Story

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RAIL -- USA Stock  

USD 3.70  0.31  7.73%

Let's try to summarize what's happening with Freightcar America amid unprecedented political, and economic uncertainty. Freightcar America is at this time traded for 2.76. The entity has historical hype elasticity of -0.24. The average price elasticity to hype of competition is about -0.19. The firm is projected to decline in value after the next press release, with the price expected to drop to 2.52. The average volatility of headline impact on the company stock price is huge, making predictions on the news or social media along less reliable. The price decrease on the next news is expected to be -8.7%, whereas the daily expected return is at this time at 1.25 percent. Given the investment horizon of 30 days the next projected announcement will be in about 5 days.
Published over a month ago
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Is Freightcar America (NASDAQ:RAIL) gaining more confidence from stakeholders?
Freightcar America holds a performance score of 10 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 0.6842, which means possible diversification benefits within a given portfolio. Let's try to break down what Freightcar's beta means in this case. As returns on the market increase, Freightcar America returns are expected to increase less than the market. However, during the bear market, the loss on holding Freightcar America will be expected to be smaller as well. Although it is vital to follow Freightcar America historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. Our philosophy towards predicting future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Freightcar America expected return of 1.25 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use Freightcar America jensen alpha, semi variance, day typical price, as well as the relationship between the maximum drawdown and accumulation distribution to analyze future returns on Freightcar America.
The successful prediction of Freightcar America stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Freightcar America, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Freightcar America based on Freightcar America hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Freightcar America's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Freightcar America's related companies.

Use Technical Analysis to project Freightcar expected Price

Freightcar America technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Freightcar America technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Freightcar America trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Freightcar utilizes its cash?

To perform a cash flow analysis of Freightcar America, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Freightcar America is receiving and how much cash it distributes out in a given period. The Freightcar America cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Freightcar America Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (22.4 Million)

What is driving Freightcar America Investor Appetite?

The new price hike of Freightcar America created some momentum for stakeholders as it was traded today as low as 2.2 and as high as 3.28 per share. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 8.04. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Freightcar America partners.
 2019 2020 (projected)
Long Term Debt to Equity0.07830.0778
Interest Coverage8.128.33

Deferred Revenue Breakdown

Freightcar America Deferred Revenue yearly trend continues to be relatively stable with very little volatility. Deferred Revenue may rise above about 12.9 M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Freightcar America Deferred Revenue is relatively stable at the moment as compared to the past year. The company's current value of Deferred Revenue is estimated at 12.86 Million
2010
2011
2015
2016
2019
2020
20105.22 Million
201143.98 Million
201520.8 Million
201611.75 Million
201910.58 Million
202012.86 Million

Our take on today Freightcar America hike

New Sortino Ratio is up to 0.06. Price may pull down again. Freightcar America is displaying above-average volatility over the selected time horizon. Investors should scrutinize Freightcar America independently to ensure intended market timing strategies are aligned with expectations about Freightcar America volatility.

Our Takeaway on Freightcar America Investment

While other companies under the railroads industry are still a bit expensive, Freightcar America may offer a potential longer-term growth to stakeholders. While some stakeholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Freightcar America.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Freightcar America. Please refer to our Terms of Use for any information regarding our disclosure principles.

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