American Railcar: Why it Deserves Premium over Peers

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Rupert Hargreaves
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American Railcar Industries

American Railcar Industries, Inc. (NASDAQ:ARII) is not your average value stock. With an asset value per share of $17.8, American Railcar looks expensive compared to its assets. Indeed, the company is more expensive on a price-to-book basis than its peer FreightCar America, Inc. (NASDAQ:RAIL), which trades at a price-to-book ratio of 1 and has $9.6 per share in cash, at approximately 50% of its market cap. That said, FreightCar’s low valuation is more to do with the company’s exposure to the declining coal industry. American Railcar Industries’ stocks attractive However, American Railcar Industries, Inc. (NASDAQ:ARII) offers a different kind of value and after…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk