Freightcar Story

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RAIL -- USA Stock  

USD 4.84  0.45  8.51%

As many millenniums are trying to avoid industrials space, it makes sense to summarize Freightcar America a little further and try to understand its current market patterns. We will analyze why it could be a much better year for Freightcar America shareholders. Is the firm current valuation justified? We will cover Freightcar America valuation to give you a better outlook on taking a position in the stock.
Published over three weeks ago
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Is Freightcar America outlook positive for April 2021?
The entity currently holds 79.85 M in liabilities with Debt to Equity (D/E) ratio of 1.72, which is about average as compared to similar companies.
On a scale of 0 to 100, Freightcar America holds a performance score of 6. The firm shows a Beta (market volatility) of 1.523, which means a somewhat significant risk relative to the market. Let's try to break down what Freightcar's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Freightcar America will likely underperform. 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. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-one technical indicators for Freightcar America, which you can use to evaluate the performance of the firm. Please utilizes Freightcar America variance, as well as the relationship between the maximum drawdown and semi variance to make a quick decision on whether Freightcar America price patterns will revert.
We determine the current worth of Freightcar America using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. 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 related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Freightcar America's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Freightcar America's related companies.

Freightcar America Investment Alerts

Freightcar investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Freightcar America performance across your portfolios.Please check all investment alerts for Freightcar

Freightcar America Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Freightcar value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Freightcar America competition to find correlations between indicators driving the intrinsic value of Freightcar.

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 (60.46 Million)

Breaking down the case for Freightcar America

The new price hike of Freightcar America created some momentum for stakeholders as it was traded today as low as 3.03 and as high as 3.36 per share. The company executives may have good odds in positioning the firm resources to exploit market volatility in April. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.7. 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.

Margins Breakdown

Freightcar profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Freightcar America itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Freightcar America profit margins.
Operating Margin(35.07)
EBITDA Margin(32.68)
Gross Margin(7.34)
Profit Margin(38.59)


Freightcar America Net Income Per Employee is relatively stable at the moment. Further, Freightcar America Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years.

Freightcar is expecting lower volatility in April

New value at risk is at -11.3. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Freightcar America's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Freightcar America's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Current Takeaway on Freightcar America Investment

While few other entities under the railroads industry are still a bit expensive, Freightcar America may offer a potential longer-term growth to stakeholders. On the whole, as of the 24th of March 2021, we believe that Freightcar America is currently overvalued with close to average chance of distress in the next two years. Our actual 30 days 'Buy-Sell' recommendation on the company is Strong Sell.

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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