FreightCar AmericaFRA:FAR +7.19%59 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates FRA:FAR with a GF Score™ of 59/100 and a GF Value™ of €3.71 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 977 Transportation companies, FreightCar America ranks better than 99.9% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. FreightCar America's annualized net income for the quarter that ended in Mar. 2026 was €144.1 Mil. FreightCar America's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €-78.2 Mil. Therefore, FreightCar America's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for FreightCar America's Return-on-Tangible-Equity or its related term are showing as below:
FRA:FAR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -287.42 Med: -36.61 Max: 5.49
Current: Negative Tangible Equity
During the past 13 years, FreightCar America's highest Return-on-Tangible-Equity was 5.49%. The lowest was -287.42%. And the median was -36.61%.
FRA:FAR's Return-on-Tangible-Equity is ranked better than 99.9% of 977
companies
in the Transportation industry
Industry Median: 8.99
vs FRA:FAR: Negative Tangible Equity
FreightCar America (FRA:FAR) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
FreightCar America Return-on-Tangible-Equity Related Terms
FreightCar America Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for FreightCar America's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FreightCar America Return-on-Tangible-Equity Chart
FRA:FAR vs SWVL, RVSN, PNYG: Return-on-Tangible-Equity Comparison
For the Railroads subindustry, FreightCar America's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
FreightCar America Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, FreightCar America's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where FreightCar America's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
FreightCar America (FRA:FAR) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on FreightCar America and its competitors. According to the industry distribution chart, FreightCar America ranks #1 out of 977 companies in the Transportation industry, placing it in the top 0.099999999999994%.
Is FreightCar America's Return-on-Tangible-Equity too high?
FreightCar America's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, FreightCar America ranks #1 out of 977 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, FreightCar America has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FreightCar America's Return-on-Tangible-Equity compare to SWVL and RVSN?
According to the Transportation industry distribution chart, FreightCar America ranks #1 out of 977 companies for Return-on-Tangible-Equity. This places FreightCar America in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.99. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 8.99, based on 977 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on FreightCar America and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 8.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FreightCar America's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FreightCar America stock overvalued right now?
Based on GuruFocus' analysis, FreightCar America (FRA:FAR) is currently considered Significantly Overvalued. The stock's GF Value™ is €3.71, compared to a current price of €8.20 — trading 121% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. FreightCar America's overall GF Score™ is 59/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For FreightCar America (FRA:FAR), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is FreightCar America (FRA:FAR) Overvalued in 2026?
Based on GuruFocus' analysis, FreightCar America stock appears to be overvalued.
The current stock price of €8.20 is trading 121% above its estimated GF Value™ of €3.71.
GuruFocus considers FreightCar America to be Significantly Overvalued.
No single metric tells the full story. See the FRA:FAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FreightCar America Inc is a diversified manufacturer and supplier of railcars and railcar components. It designs and manufactures a variety of railcar types for transportation of bulk commodities and containerized freight products in North America. The company also provides railcar rebody and repair services, railcar conversion services, and supplies railcar parts. The company has two segments: Manufacturing and Aftermarket. The majority of the company's revenue is derived from the Manufacturing segment, which includes new railcar manufacturing, used railcar sales, and various conversions and rebodies. Geographically, it generates the maximum revenue from the United States.
59GF Score
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