NYSE:GBX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with mediocre 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

Stable Share Price: GBX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GBX's weekly volatility has decreased from 10% to 5% over the past year.


Market Performance


7 Day Return

-1.6%

GBX

-1.3%

US Machinery

-2.4%

US Market


1 Year Return

102.5%

GBX

50.7%

US Machinery

31.2%

US Market

Return vs Industry: GBX exceeded the US Machinery industry which returned 50.7% over the past year.

Return vs Market: GBX exceeded the US Market which returned 31.2% over the past year.


Shareholder returns

GBXIndustryMarket
7 Day-1.6%-1.3%-2.4%
30 Day21.7%4.9%-3.0%
90 Day32.5%10.8%3.2%
1 Year111.6%102.5%54.4%50.7%34.1%31.2%
3 Year1.6%-8.0%44.7%34.4%48.1%38.6%
5 Year108.6%80.7%154.9%128.8%116.5%92.3%

Long-Term 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?

48.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GBX ($46.68) is trading above our estimate of fair value ($32.4)

Significantly Below Fair Value: GBX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GBX is poor value based on its PE Ratio (48.7x) compared to the US Machinery industry average (33.4x).

PE vs Market: GBX is poor value based on its PE Ratio (48.7x) compared to the US market (21x).


Price to Earnings Growth Ratio

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 (1.2x) compared to the US Machinery industry average (3.1x).


Next Steps

Future Growth

How is Greenbrier Companies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

83.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBX's forecast earnings growth (83.4% per year) is above the savings rate (2%).

Earnings vs Market: GBX's earnings (83.4% per year) are forecast to grow faster than the US market (19.5% per year).

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

Revenue vs Market: GBX's revenue (15.8% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: GBX's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GBX's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Greenbrier Companies performed over the past 5 years?

-27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBX has a large one-off gain of $17.0M impacting its November 30 2020 financial results.

Growing Profit Margin: GBX's current net profit margins (1.3%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: GBX's earnings have declined by 27.1% 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 (-48.6%) over the past year, making it difficult to compare to the Machinery industry average (-12.2%).


Return on Equity

High ROE: GBX's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Greenbrier Companies's financial position?


Financial Position Analysis

Short Term Liabilities: GBX's short term assets ($1.5B) exceed its short term liabilities ($659.4M).

Long Term Liabilities: GBX's short term assets ($1.5B) exceed its long term liabilities ($895.1M).


Debt to Equity History and Analysis

Debt Level: GBX's debt to equity ratio (72%) is considered high.

Reducing Debt: GBX's debt to equity ratio has increased from 53.2% to 72% over the past 5 years.

Debt Coverage: GBX's debt is well covered by operating cash flow (32.7%).

Interest Coverage: GBX's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GBX's dividend (2.31%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: GBX's dividend (2.31%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GBX has been paying a dividend for less than 10 years.

Growing Dividend: GBX's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (112.7%), GBX's dividend payments are not 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

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Bill Furman (76 yo)

27.17yrs

Tenure

US$6,923,377

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 ($USD6.92M) is above average for companies of similar size in the US market ($USD3.64M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Furman
Chairman & CEO27.17yrsUS$6.92m1.56%
$ 24.3m
Lorie Tekorius
President & COO1.58yrsUS$4.07m0.23%
$ 3.5m
Adrian Downes
Senior VP2.58yrsUS$1.20m0.039%
$ 612.1k
Mark Rittenbaum
Executive VP & Senior Advisor to the Chairman28.17yrsUS$2.72m0.26%
$ 4.0m
Alejandro Centurion
Executive VP & President of Greenbrier Manufacturing Operations15.58yrsUS$2.59m0.095%
$ 1.5m
Justin Roberts
VP of Corporate Finance & Treasurer4.17yrsno datano data
Martin Baker
Senior VP12.83yrsUS$1.56m0.074%
$ 1.2m
Jack Isselmann
Senior Vice President of External Affairs & Communications8.42yrsno datano data
Laurie Dornan
Senior VP & Chief Human Resources Officerno datano datano data
Owen Whitehall
Executive Vice President of Global Mfg. Organization - North American Operations & Global Sourcing2.92yrsno datano data
Martin Graham
Executive Vice President of Global Mfg. Organization International Operations & Global Engineering8.17yrsno datano data
Brian Comstock
Executive VP and Chief Commercial & Leasing Officer0.17yrUS$1.61m0.041%
$ 637.0k

8.2yrs

Average Tenure

63.5yo

Average Age

Experienced Management: GBX's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Furman
Chairman & CEO27.17yrsUS$6.92m1.56%
$ 24.3m
Duane McDougall
Independent Director17.67yrsUS$312.50k0.13%
$ 2.1m
Donald Washburn
Independent Director16.58yrsUS$242.50k0.13%
$ 2.0m
Wendy Teramoto
Independent Director1.42yrsUS$203.31k0.073%
$ 1.1m
Charles Swindells
Independent Director15.5yrsUS$337.50k0.13%
$ 2.0m
Kelly Williams
Independent Director5.92yrsUS$257.50k0.068%
$ 1.1m
Thomas Fargo
Lead Independent Director0.17yrUS$247.50k0.030%
$ 473.6k
Graeme Allan Jack
Independent Director14.42yrsUS$262.50k0.090%
$ 1.4m
Wanda Felton
Independent Director3.75yrsUS$235.00k0.023%
$ 359.2k
David Starling
Independent Director3.75yrsUS$232.50k0.025%
$ 387.7k

6.5yrs

Average Tenure

70.5yo

Average Age

Experienced Board: GBX's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GBX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.558b
  • Shares outstanding: 32.82m
  • 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
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. It operates through three segments: Manufacturing; Wheels, Repa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 23:28
End of Day Share Price2021/03/04 00:00
Earnings2020/11/30
Annual Earnings2020/08/31


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.