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.

Rewards

Trading at 51.7% below its fair value

Earnings are forecast to grow 16.82% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Profit margins (1.9%) are lower than last year (5.6%)

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with adequate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.7%

GBX

1.6%

US Machinery

1.8%

US Market


1 Year Return

-36.7%

GBX

11.4%

US Machinery

20.1%

US Market

Return vs Industry: GBX underperformed the US Machinery industry which returned 11.4% over the past year.

Return vs Market: GBX underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

GBXIndustryMarket
7 Day3.7%1.6%1.8%
30 Day2.8%-2.0%1.4%
90 Day-6.1%1.9%8.8%
1 Year-34.5%-36.7%13.4%11.4%22.7%20.1%
3 Year-34.1%-38.9%37.2%28.4%50.1%40.4%
5 Year-47.5%-53.5%62.9%43.6%72.9%53.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GBX ($27.3) is trading below our estimate of fair value ($56.47)

Significantly Below Fair Value: GBX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GBX is good value based on its PE Ratio (14.6x) compared to the Machinery industry average (21.4x).

PE vs Market: GBX is good value based on its PE Ratio (14.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: GBX is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: GBX is good value based on its PB Ratio (0.7x) 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 6 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBX's forecast earnings growth (16.8% per year) is above the savings rate (1.7%).

Earnings vs Market: GBX's earnings (16.8% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: GBX's earnings are forecast to grow, but not significantly.

Revenue vs Market: GBX's revenue is expected to decline over the next 3 years (-7.2% per year).

High Growth Revenue: GBX's revenue is forecast to decline over the next 3 years (-7.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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?

-16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBX has high quality earnings.

Growing Profit Margin: GBX's current net profit margins (1.9%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: GBX's earnings have declined by -16.2% 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 (-57.6%) over the past year, making it difficult to compare to the Machinery industry average (2.1%).


Return on Equity

High ROE: GBX's Return on Equity (7.1%) is considered low.


Return on Assets


Return on Capital Employed


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 ($489.4M).

Long Term Liabilities: GBX's short term assets ($1.5B) exceed its long term liabilities ($954.8M).


Debt to Equity History and Analysis

Debt Level: GBX's debt to equity ratio (56.3%) is considered high.

Reducing Debt: GBX's debt to equity ratio has reduced from 82.2% to 56.3% over the past 5 years.

Debt Coverage: GBX's debt is not well covered by operating cash flow (0.7%).

Interest Coverage: GBX's interest payments on its debt are well covered by EBIT (4.8x 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 1.7x debt).


Next Steps

Dividend

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

3.96%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: GBX's dividend (3.96%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: GBX's dividend (3.96%) is in the top 25% of dividend payers in the US market (3.68%)


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.6%), GBX's dividend payments are 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?

7.3yrs

Average management tenure


CEO

Bill Furman (75yo)

26.1yrs

Tenure

US$7,851,446

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 ($USD7.85M) is above average for companies of similar size in the US market ($USD2.47M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Furman
Chairman & CEO26.1yrsUS$7.85m0.67% $5.9m
Lorie Tekorius
President & COO0.5yrsUS$2.37m0.18% $1.6m
Adrian Downes
Senior VP1.5yrsUS$1.09m0.024% $209.5k
Brian Comstock
Executive Vice President of Sales & Marketing1.8yrsUS$1.61m0.085% $756.0k
Mark Rittenbaum
Executive VP and Chief Commercial & Leasing Officer27.1yrsUS$2.26m0.20% $1.7m
Alejandro Centurion
Executive VP & President of Greenbrier Manufacturing Operations14.5yrsUS$3.41m0.076% $677.9k
Justin Roberts
VP of Corporate Finance & Treasurer3.1yrsno datano data
Martin Baker
Senior VP11.8yrsUS$1.56m0.099% $878.8k
Jack Isselmann
Senior Vice President of External Affairs & Communications7.3yrsno datano data
Laurie Dornan
Senior Vice President of Human Resources0yrsno datano data

7.3yrs

Average Tenure

62yo

Average Age

Experienced Management: GBX's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Furman
Chairman & CEO26.1yrsUS$7.85m0.67% $5.9m
Duane McDougall
Lead Director 6.1yrsUS$323.33k0.15% $1.4m
Donald Washburn
Independent Director15.5yrsUS$253.33k0.12% $1.0m
Wendy Teramoto
Director0.3yrsUS$57.72k0.061% $539.6k
Charles Swindells
Independent Director14.4yrsUS$348.33k0.12% $1.0m
Kelly Williams
Independent Director4.8yrsUS$417.08k0.055% $493.1k
Thomas Fargo
Independent Director4.6yrsUS$258.33k0.018% $160.2k
Graeme Allan Jack
Independent Director13.3yrsUS$273.33k0.078% $693.7k
Wanda Felton
Independent Director2.7yrsUS$245.83k0.011% $94.3k
David Starling
Independent Director2.7yrsUS$243.33k0.012% $110.7k

5.5yrs

Average Tenure

69.5yo

Average Age

Experienced Board: GBX's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GBX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


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$889.879m
  • Shares outstanding: 32.60m
  • 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. The company operates in three segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. The Manufacturing segment offers conventional railcars, such as covered hopper cars, boxcars, center partition cars, and bulkhead flat cars; tank cars; double-stack intermodal railcars; auto-max and multi-max products for the transportation of light vehicles; pressurized tank cars, non-pressurized tank cars, flat cars, coil cars, gondolas, sliding wall cars, and automobile transporter cars; and marine vessels, including conventional deck barges, double-hull tank barges, railcar/deck barges, barges for aggregates, and other heavy industrial products and dump barges. The Wheels & Parts segment provides wheel services, including reconditioning of wheels and axles, new axle machining and finishing, and downsizing; operates a railcar repair, refurbishment, and maintenance network; and reconditions and manufactures railcar cushioning units, couplers, yokes, side frames, bolsters, and various other parts, as well as produces roofs, doors, and associated parts for boxcars. The Leasing & Services segment offers operating leases and ‘by the mile’ leases for a fleet of approximately 9,400 railcars; and management services comprising railcar maintenance management, railcar accounting services, fleet management, administration, and railcar remarketing. This segment owns or provides management services to a fleet of approximately 380,000 railcars for railroads, shippers, carriers, institutional investors, and other leasing and transportation companies. The Greenbrier Companies, Inc. serves railroads, leasing companies, financial institutions, shippers, carriers, and transportation companies. The company was founded in 1974 and is headquartered in Lake Oswego, Oregon. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 00:51
End of Day Share Price2020/02/14 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.