Freightcar America, Inc. (RAIL) vs Trinity Industries, Inc. (TRN)

Freightcar America, Inc. and Trinity Industries, Inc. are both Railroads companies. Trinity Industries, Inc. is the larger, with a market value of $2.2B against $243.3M — 9.1× the size. Freightcar America, Inc. has negative trailing earnings, so its P/E is not meaningful; Trinity Industries, Inc. trades at 6.6×. Freightcar America, Inc. grew revenue faster over the last twelve months: −0.50% against −19.0%. Trinity Industries, Inc. has the higher net margin (16.6% vs −2.69%) and the lower return on invested capital (7.59% vs 14.8%). Across the 19 metrics below, Freightcar America, Inc. leads on 11 and Trinity Industries, Inc. on 8.

Valuation

Metric RAIL TRN Railroads median
P/E n/m 6.57 26.88
P/S 0.49 1.09 2.58
P/B 6.33 1.94 4.33
Price to free cash flow 12.81 n/m 26.65
EV/EBITDA 10.98 6.91 13.50
EV/Sales 0.58 3.57 4.56
Earnings yield (5.85%) 15.23% 3.59%
Free cash flow yield 7.81% (15.20%) 3.41%

Profitability

Metric RAIL TRN Railroads median
Gross margin 12.50% 26.24% 30.61%
Operating margin 3.77% 36.96% 24.29%
Net margin (2.69%) 16.62% 10.59%
Free cash flow margin 3.86% (16.53%) 8.43%
Return on equity 52.80% 28.24% 11.49%
Return on assets (4.13%) 3.98% 3.98%
Return on invested capital 14.75% 7.59% 7.59%

Growth

Metric RAIL TRN Railroads median
Revenue growth (TTM) (0.50%) (18.95%) 2.97%
EPS growth (last fiscal year) 144.18% 85.98% —
Revenue growth, 5-year CAGR 35.81% 4.27% 5.27%
Net income growth, 5-year CAGR 0.00% 0.00% 0.88%

Health

Metric RAIL TRN Railroads median
Debt to equity 2.78 4.56 0.58
Current ratio 1.81 1.89 1.03
Net debt to EBITDA 1.07 5.49 2.71

Dividend

Metric RAIL TRN Railroads median
Dividend yield — 4.08% 2.17%
Payout ratio 0.00 0.88 0.19

Size

Metric RAIL TRN Railroads median
Market cap 243.31m 2.22b 2.22b

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