TX Rail Products, Inc (TXRP): fair value, margin of safety and Wheel Score

Is TXRP undervalued?

TX Rail Products, Inc (TXRP) closed at 0.2102 on 16 Oct 2026. The GLS average fair value - the simple average of the 5 valuation models that produced a positive number - is 1.05, which puts the price 80% below it. 5 of the 5 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

The 5 models disagree widely: Graham Number gives 0.2110 while GLS Growth gives 2.00. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files TXRP under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.

Nine valuation models for TXRP

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is weak: TXRP passes 3 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 5.1 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.

Returns on capital are high - ROIC 18.9%, ROE 71.5%, ROA 15.7% - with debt at 2.78 times equity and negative free cash flow. Debt of 2.78 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

TX Rail Products, Inc pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Rail 95%, Mining 5% (quarter Q4 FY2019).

Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 39: No options

TXRP has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 10k shares a day on a market cap of $9M, with a beta of -0.96 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for TXRP in the nightly calendar.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Industrial - Distribution

The 12 companies below are the closest to TX Rail Products, Inc by market cap within the Industrial - Distribution industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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