NYSE:GWR

Stock Analysis Report

Executive Summary

Genesee & Wyoming Inc. owns and leases freight railroads worldwide.

Snowflake

Fundamentals

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has Genesee & Wyoming's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

GWR

4.3%

US Transportation

0.07%

US Market


1 Year Return

43.8%

GWR

17.7%

US Transportation

8.9%

US Market

Return vs Industry: GWR exceeded the US Transportation industry which returned 17.7% over the past year.

Return vs Market: GWR exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

GWRIndustryMarket
7 Day0.7%4.3%0.07%
30 Day0.7%3.0%-0.3%
90 Day1.5%-4.1%-1.6%
1 Year43.8%43.8%19.7%17.7%11.3%8.9%
3 Year64.9%64.9%89.4%80.4%46.3%36.8%
5 Year16.8%16.8%52.5%40.5%62.1%44.3%

Price Volatility Vs. Market

How volatile is Genesee & Wyoming's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Genesee & Wyoming undervalued compared to its fair value and its price relative to the market?

29.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GWR ($111.17) is trading above our estimate of fair value ($47.78)

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


Price To Earnings Ratio

PE vs Industry: GWR is poor value based on its PE Ratio (29.7x) compared to the Transportation industry average (18x).

PE vs Market: GWR is poor value based on its PE Ratio (29.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: GWR is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: GWR is good value based on its PB Ratio (1.8x) compared to the US Transportation industry average (2.3x).


Next Steps

Future Growth

How is Genesee & Wyoming forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWR's forecast earnings growth (15.7% per year) is above the savings rate (2.7%).

Earnings vs Market: GWR's earnings (15.7% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: GWR's revenue (5.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: GWR's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GWR's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has Genesee & Wyoming performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GWR's earnings have grown by 12.8% per year over the past 5 years.

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

Earnings vs Industry: GWR had negative earnings growth (-63.9%) over the past year, making it difficult to compare to the Transportation industry average (-43.6%).


Return on Equity

High ROE: GWR's Return on Equity (6%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Genesee & Wyoming's financial position?


Financial Position Analysis

Short Term Liabilities: GWR's short term assets ($621.9M) exceeds its short term liabilities ($573.1M)

Long Term Liabilities: GWR's short term assets (621.9M) do not cover its long term liabilities (4.1B)


Debt to Equity History and Analysis

Debt Level: GWR's debt to equity ratio (62.7%) is considered high

Reducing Debt: GWR's debt to equity ratio has reduced from 77.8% to 62.7% over the past 5 years.

Debt Coverage: GWR's debt is well covered by operating cash flow (23.5%).

Interest Coverage: GWR's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: GWR's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Genesee & Wyoming's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate GWR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GWR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if GWR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GWR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GWR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Genesee & Wyoming's salary, the management and board of directors tenure and is there insider trading?

11.5yrs

Average management tenure


CEO

Jack Hellmann (49yo)

12.3yrs

Tenure

US$5,640,295

Compensation

Mr. John C. Hellmann, also known as Jack, has been the Chief Executive Officer of Genesee & Wyoming Inc. since June 1, 2007 and has been its President since May 2, 2005. Mr. Hellmann served as the Chief Fi ...


CEO Compensation Analysis

Compensation vs. Market: Jack's total compensation ($USD5.64M) is about average for companies of similar size in the US market ($USD6.88M).

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


Management Age and Tenure

11.5yrs

Average Tenure

49yo

Average Age

Experienced Management: GWR's management team is seasoned and experienced (11.5 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

68yo

Average Age

Experienced Board: GWR's board of directors are considered experienced (4.3 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.


Ownership Breakdown


Management Team

  • Jack Hellmann (49yo)

    Chairman

    • Tenure: 12.3yrs
    • Compensation: US$5.64m
  • M. Linn (58yo)

    Senior Vice President of Engineering

    • Tenure: 6.8yrs
  • Timothy Gallagher (56yo)

    Chief Financial Officer

    • Tenure: 14.4yrs
    • Compensation: US$2.11m
  • Tony Long

    Senior Vice President of Operations Support

    • Tenure: 0yrs
  • Christopher Liucci (50yo)

    Chief Accounting Officer & Global Controller

    • Tenure: 13.6yrs
    • Compensation: US$661.42k
  • Allison Fergus (45yo)

    General Counsel & Secretary

    • Tenure: 13yrs
    • Compensation: US$1.99m
  • Paula Henry

    President of Utah Railway Company and Senior Vice President of Rocky Mountain Region

    • Tenure: 11.5yrs
  • Mary Russell

    Global Human Resource Officer

    • Tenure: 2.7yrs
  • Michael Miller (49yo)

    President of North America

    • Tenure: 1yrs
  • Matthew Walsh (44yo)

    Executive Vice President of Global Corporate Development

    • Tenure: 4.3yrs
    • Compensation: US$2.16m

Board Members

  • Ann Reese (66yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$216.47k
  • Al Neupaver (68yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$186.45k
  • Joe Pyne (71yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$182.66k
  • Mortimer Fuller (76yo)

    Chairman Emeritus

    • Tenure: 2.4yrs
    • Compensation: US$78.10k
  • Jack Hellmann (49yo)

    Chairman

    • Tenure: 12.3yrs
    • Compensation: US$5.64m
  • Mark Scudder (56yo)

    Independent Director

    • Tenure: 16.2yrs
    • Compensation: US$219.59k
  • Cedric Bobo

    Board Observer

    • Tenure: 7yrs
  • Øivind Lorentzen (68yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$216.25k
  • Dick Bott (72yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$201.40k
  • Hunter Smith (50yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$186.47k

Company Information

Genesee & Wyoming Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genesee & Wyoming Inc.
  • Ticker: GWR
  • Exchange: NYSE
  • Founded: 1899
  • Industry: Railroads
  • Sector: Transportation
  • Market Cap: US$6.335b
  • Shares outstanding: 56.99m
  • Website: https://www.gwrr.com

Number of Employees


Location

  • Genesee & Wyoming Inc.
  • 20 West Avenue
  • Darien
  • Connecticut
  • 6820
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GWRNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 1996

Biography

Genesee & Wyoming Inc. owns and leases freight railroads worldwide. It operates through three segments: North American Operations, Australian Operations, and U.K./European Operations. The company transport ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:43
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.