FreightCar America: Pure-Play Railcar Manufacturer Poised For Higher Margin Growth

  • RAIL is a pure-play railcar manufacturer with strong operating margins from its Mexico plant, benefiting from cost advantages and lower inventory risk. The company boasts a robust $318M backlog and stands to gain from the DOT-117 retrofit mandate, supporting future growth and higher margins. Despite recent share price volatility, RAIL trades at a steep discount to peers, offering a compelling mispricing opportunity for investors.