` Comparison: RAIL vs CAT - Alpha Spread

RAIL
vs
CAT

Over the past 12 months, RAIL has underperformed CAT, delivering a return of +50% compared to the CAT's +123% growth.

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RAIL
CAT
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Valuation Comparison

RAIL Intrinsic Value
29.58 USD
Undervaluation 56%
Intrinsic Value
Price
CAT Intrinsic Value
364.28 USD
Overvaluation 52%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
FreightCar America Inc
NASDAQ:RAIL
13.16 USD
Caterpillar Inc
NYSE:CAT
756.72 USD
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Valuation Scenario:
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Base Case
Bull Case

Growth Comparison

Growth Over Time
RAIL, CAT

RAIL
CAT
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
FreightCar America Inc
Revenue
Caterpillar Inc
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
RAIL, CAT

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CAT
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
FreightCar America Inc
NASDAQ:RAIL
Caterpillar Inc
NYSE:CAT
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What is Free Cash Flow?

Gross Margin

RAIL
15.1%
CAT
33.8%

Operating Margin

RAIL
7.4%
CAT
18.5%

Net Margin

RAIL
17%
CAT
13.1%

FCF Margin

RAIL
5.3%
CAT
11%

ROE

RAIL
-106.7%
CAT
43.5%

ROA

RAIL
29.7%
CAT
9.5%

ROIC

RAIL
54.4%
CAT
12.4%

ROCE

RAIL
21.6%
CAT
21.3%

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
RAIL, CAT

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Performance Gap
RAIL, CAT

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RAIL
CAT
Difference
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Performance By Year
RAIL, CAT

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RAIL
CAT
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