American Railcar Industries represents an excellent small cap investment opportunity over the short to medium term. Strong management, increasing margins and revenues, as well as global expansion and investment in its high margin segment make this company a favorite among railroad stocks. Based on valuation, this stock is trading at a 30-50% discount to fair value.
Company Overview (source: 10-K)
American Railcar Industries (NASDAQ:ARII) is a leading North American designer and manufacturer of hopper and tank railcars. It provides railcar customers with integrated solutions through a comprehensive set of high quality products and related services offered by its three reportable segments: manufacturing, railcar leasing and railcar services.
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