Freightcar Story

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RAIL -- USA Stock  

USD 4.82  0.67  12.20%

The stock continues to experience an active upward rally. Because some millenniums are getting more into industrials space, we are going to summarize the feasibility of inclusion Freightcar into your portfolio. What exactly are Freightcar America shareholders getting in April?
Published over three weeks ago
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Do analysts believe Freightcar America (NASDAQ:RAIL) will continue to hike?
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 26.65 percent. This denotes that the company is making $0.27 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.
What is the right price you would pay to acquire a share of Freightcar America? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
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How important is Freightcar America's Liquidity

Freightcar America financial leverage refers to using borrowed capital as a funding source to finance Freightcar America ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Freightcar America financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Freightcar America's total debt and its cash.

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)

Is Freightcar a risky opportunity?

Let's check the volatility. Freightcar is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Freightcar (NASDAQ:RAIL) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Freightcar America stock makes you a part-owner of that company.

Freightcar America Current Consensus

Here is the new trade recommendation based on an ongoing consensus estimate among financial analysis covering Freightcar America. The Freightcar consensus assessment is calculated by taking the average estimates from all of the analysts covering Freightcar America

Strong Buy00.0
Strong Sell00.0

Freightcar America implied volatility may change after the hike

New information ratio is at 0.18. 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.

Our Final Perspective on Freightcar America

While other entities under the railroads industry are still a bit expensive, Freightcar America may offer a potential longer-term growth to stakeholders. To conclude, as of the 27th of March 2021, we believe that at this point, Freightcar America is very risky with below average odds of financial turmoil within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our final 30 days recommendation on the company is Hold.

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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