As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of The Greenbrier Companies Inc (NYSE:GBX), it is a financially-robust , dividend-paying company with a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Greenbrier Companies here.
Flawless balance sheet established dividend payer
GBX delivered a bottom-line expansion of 31% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did GBX outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 27% earnings growth. This is what investors like to see! GBX is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that GBX has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. GBX’s has produced operating cash levels of 0.22x total debt over the past year, which implies that GBX’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, GBX is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.1%.
For Greenbrier Companies, I’ve compiled three fundamental aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for GBX’s future growth? Take a look at our free research report of analyst consensus for GBX’s outlook.
- Valuation: What is GBX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GBX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GBX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.