Freightcar America Price To Book vs. Profit Margin

RAIL Stock  USD 10.33  0.35  3.51%   
Based on the key profitability measurements obtained from Freightcar America's financial statements, Freightcar America's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Freightcar America's ability to earn profits and add value for shareholders. At this time, Freightcar America's Days Sales Outstanding is quite stable compared to the past year. EV To Sales is expected to rise to 0.50 this year, although the value of Price To Sales Ratio will most likely fall to 0.20. At this time, Freightcar America's Accumulated Other Comprehensive Income is quite stable compared to the past year. Non Operating Income Net Other is expected to rise to about 4.7 M this year, although the value of Income Before Tax is projected to rise to (21 M).
For Freightcar America profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Freightcar America to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Freightcar America utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Freightcar America's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Freightcar America over time as well as its relative position and ranking within its peers.
  

Freightcar America's Revenue Breakdown by Earning Segment

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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
(4.41)
Revenue Per Share
16.728
Quarterly Revenue Growth
0.664
Return On Assets
0.0577
Return On Equity
(0.09)
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.

Freightcar America Profit Margin vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Freightcar America's current stock value. Our valuation model uses many indicators to compare Freightcar America value to that of its competitors to determine the firm's financial worth.
Freightcar America is rated below average in price to book category among its peers. It is rated below average in profit margin category among its peers . At this time, Freightcar America's Net Loss is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Freightcar America by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Freightcar Profit Margin vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Freightcar America

P/B

 = 

MV Per Share

BV Per Share

 = 
3.17 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Freightcar America

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.01) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Freightcar Profit Margin Comparison

Freightcar America is currently under evaluation in profit margin category among its peers.

Freightcar America Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Freightcar America, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Freightcar America will eventually generate negative long term returns. The profitability progress is the general direction of Freightcar America's change in net profit over the period of time. It can combine multiple indicators of Freightcar America, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income2.4 M2.5 M
Operating Income10.5 M5.3 M
Income Before Tax-22.1 M-21 M
Total Other Income Expense Net-32.6 M-31 M
Net Loss-23.6 M-22.4 M
Income Tax Expense1.5 M1.4 M
Net Loss-35 M-33.2 M
Net Loss-30.5 M-32 M
Non Operating Income Net Other4.5 M4.7 M
Interest Income700.4 K735.4 K
Net Interest Income-20.9 M-19.8 M
Change To Netincome736 K699.2 K
Net Loss(0.83)(0.79)
Income Quality(0.20)(0.19)
Net Income Per E B T 1.07  0.66 

Freightcar Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Freightcar America. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Freightcar America position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Freightcar America's important profitability drivers and their relationship over time.

Use Freightcar America in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Freightcar America position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Freightcar America will appreciate offsetting losses from the drop in the long position's value.

Freightcar America Pair Trading

Freightcar America Pair Trading Analysis

The ability to find closely correlated positions to Freightcar America could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Freightcar America when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Freightcar America - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Freightcar America to buy it.
The correlation of Freightcar America is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Freightcar America moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Freightcar America moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Freightcar America can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Freightcar America position

In addition to having Freightcar America in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Heavy Metals
Heavy Metals Theme
Companies involved in mining, production, and distribution of various industrial metals and minerals. The Heavy Metals theme has 37 constituents at this time.
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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.
For more information on how to buy Freightcar Stock please use our How to buy in Freightcar Stock guide.
You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
To fully project Freightcar America's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Freightcar America at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Freightcar America's income statement, its balance sheet, and the statement of cash flows.
Potential Freightcar America investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Freightcar America investors may work on each financial statement separately, they are all related. The changes in Freightcar America's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Freightcar America's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.