NYSE:GBX

Stock Analysis Report

Executive Summary

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Greenbrier Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.4%

GBX

4.7%

US Machinery

1.8%

US Market


1 Year Return

-46.9%

GBX

6.6%

US Machinery

7.3%

US Market

Return vs Industry: GBX underperformed the US Machinery industry which returned 6.6% over the past year.

Return vs Market: GBX underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

GBXIndustryMarket
7 Day6.4%4.7%1.8%
30 Day1.8%-0.6%-0.7%
90 Day7.8%-0.9%0.06%
1 Year-45.4%-46.9%8.9%6.6%9.7%7.3%
3 Year-9.8%-15.7%49.4%39.7%46.3%36.9%
5 Year-46.5%-51.9%57.6%38.4%64.5%46.5%

Price Volatility Vs. Market

How volatile is Greenbrier Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Greenbrier Companies undervalued compared to its fair value and its price relative to the market?

11.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GBX ($30.32) is trading below our estimate of fair value ($34.05)

Significantly Undervalued: GBX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GBX is good value based on its PE Ratio (14.8x) compared to the Machinery industry average (20.1x).

PE vs Market: GBX is good value based on its PE Ratio (14.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: GBX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: GBX is good value based on its PB Ratio (0.8x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Greenbrier Companies forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBX's forecast earnings growth (23.1% per year) is above the savings rate (2.7%).

Earnings vs Market: GBX's earnings (23.1% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GBX's revenue (2.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GBX's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if GBX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Greenbrier Companies performed over the past 5 years?

-6.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GBX's earnings have declined by -6.5% per year over the past 5 years.

Accelerating Growth: GBX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GBX had negative earnings growth (-53.7%) over the past year, making it difficult to compare to the Machinery industry average (18.7%).


Return on Equity

High ROE: GBX's Return on Equity (6.4%) is considered low.


Return on Assets

ROA vs Industry: GBX's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: GBX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Greenbrier Companies's financial position?


Financial Position Analysis

Short Term Liabilities: GBX's short term assets ($1.5B) exceeds its short term liabilities ($499.1M)

Long Term Liabilities: GBX's short term assets (1.5B) exceeds its long term liabilities (572.2M)


Debt to Equity History and Analysis

Debt Level: GBX's debt to equity ratio (35.4%) is considered satisfactory

Reducing Debt: GBX's debt to equity ratio has reduced from 88% to 35.4% over the past 5 years.

Debt Coverage: GBX's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: GBX's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

Inventory Level: GBX has a high level of physical assets or inventory.

Debt Coverage by Assets: GBX's debt is covered by short term assets (assets are 2.866730x debt).


Next Steps

Dividend

What is Greenbrier Companies's current dividend yield, its reliability and sustainability?

3.30%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%3.7%industryaverage2.1%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GBX's dividend (3.3%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GBX's dividend (3.3%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: GBX's dividend payments have been volatile in the past 10 years.

Growing Dividend: GBX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.8%), GBX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Greenbrier Companies's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Bill Furman (75yo)

25.8yrs

Tenure

US$7,473,644

Compensation

Mr. William A. Furman, also known as Bill, has been Chief Executive Officer and President at The Greenbrier Companies at Gunderson, LLC since 1994. Mr. Furman serves as Principal Executive Officer and Mana ...


CEO Compensation Analysis

Compensation vs. Market: Bill's total compensation ($USD7.47M) is above average for companies of similar size in the US market ($USD2.67M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

62yo

Average Age

Experienced Management: GBX's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

70yo

Average Age

Experienced Board: GBX's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$71,06024 Apr 19
Martin Baker
EntityIndividual
Role
Chief Legal Officer
Chief Compliance Officer
Shares2,000
Max PriceUS$35.53
SellUS$15,72913 Nov 18
Mark Rittenbaum
EntityIndividual
Role
Senior Key Executive
Executive VP and Chief Commercial & Leasing Officer
Shares300
Max PriceUS$52.43

Ownership Breakdown


Management Team

  • Martin Baker (64yo)

    Chief Compliance Officer

    • Tenure: 11.4yrs
    • Compensation: US$1.56m
  • Bill Furman (75yo)

    Chairman & CEO

    • Tenure: 25.8yrs
    • Compensation: US$7.47m
  • Mark Rittenbaum (62yo)

    Executive VP and Chief Commercial & Leasing Officer

    • Tenure: 26.8yrs
    • Compensation: US$2.28m
  • Brian Comstock (57yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 1.5yrs
    • Compensation: US$1.62m
  • Alejandro Centurion (63yo)

    Executive VP & President of Global Manufacturing Operations

    • Tenure: 14.2yrs
    • Compensation: US$1.66m
  • Adrian Downes (56yo)

    CFO, Chief Accounting Officer & Senior VP

    • Tenure: 1.2yrs
    • Compensation: US$1.04m
  • Owen Whitehall

    Executive Vice President of Global Mfg. Organization - North American Operations & Global Sourcing

    • Tenure: 1.5yrs
  • Lorie Tekorius (52yo)

    President & COO

    • Tenure: 0.2yrs
    • Compensation: US$2.21m
  • Jack Isselmann

    Senior Vice President of External Affairs & Programs

    • Tenure: 4.9yrs
  • Justin Roberts

    VP of Corporate Finance & Treasurer

    • Tenure: 2.8yrs

Board Members

  • Duane McDougall (67yo)

    Lead Director

    • Tenure: 5.8yrs
    • Compensation: US$319.05k
  • Bill Furman (75yo)

    Chairman & CEO

    • Tenure: 25.8yrs
    • Compensation: US$7.47m
  • Don Washburn (75yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: US$256.55k
  • Charles Swindells (77yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: US$349.67k
  • Kelly Williams (55yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$249.67k
  • Tom Fargo (70yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$255.30k
  • Graeme Allan Jack (69yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$269.05k
  • Wanda Felton (61yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$242.17k
  • David Starling (70yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$240.30k

Company Information

The Greenbrier Companies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Greenbrier Companies, Inc.
  • Ticker: GBX
  • Exchange: NYSE
  • Founded: 1974
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$984.901m
  • Shares outstanding: 32.48m
  • Website: https://www.gbrx.com

Number of Employees


Location

  • The Greenbrier Companies, Inc.
  • One Centerpointe Drive
  • Suite 200
  • Lake Oswego
  • Oregon
  • 97035
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GBXNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1994
G90DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1994
G90BST (Boerse-Stuttgart)YesCommon StockDEEURJul 1994
GBX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1994

Biography

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. The company operates in three segments: Manufacturing; Wheels,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:36
End of Day Share Price2019/10/17 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.