NYSE:GWR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with questionable track record.


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

Stable Share Price: GWR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

GWR

-4.9%

US Transportation

-4.1%

US Market


1 Year Return

51.1%

GWR

-21.7%

US Transportation

-14.9%

US Market

Return vs Industry: GWR exceeded the US Transportation industry which returned 21.9% over the past year.

Return vs Market: GWR exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

GWRIndustryMarket
7 Day0.7%-4.9%-4.1%
30 Day0.4%-17.4%-19.1%
90 Day1.2%-23.4%-23.4%
1 Year51.1%51.1%-20.3%-21.7%-13.2%-14.9%
3 Year61.2%61.2%27.2%20.9%10.7%3.5%
5 Year30.1%30.1%29.8%28.6%28.5%14.5%

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?

29.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GWR ($111.88) is trading above our estimate of fair value ($49.78)

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 (29.9x) compared to the Transportation industry average (20.3x).

PE vs Market: GWR is poor value based on its PE Ratio (29.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GWR is poor value based on its PEG Ratio (2x)


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 (2.5x).


Next Steps

Future Growth

How is Genesee & Wyoming forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWR's forecast earnings growth (15.3% per year) is above the savings rate (1.7%).

Earnings vs Market: GWR's earnings (15.3% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: GWR's revenue (4.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: GWR's revenue (4.6% 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 (6.8%).


Next Steps

Past Performance

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

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWR has high quality earnings.

Growing Profit Margin: GWR's current net profit margins (9.3%) are lower than last year (26.2%).


Past Earnings Growth Analysis

Earnings Trend: GWR's earnings have grown by 10.4% 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 (-65.5%) over the past year, making it difficult to compare to the Transportation industry average (-45%).


Return on Equity

High ROE: GWR's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is Genesee & Wyoming's financial position?


Financial Position Analysis

Short Term Liabilities: GWR's short term assets ($618.7M) exceed its short term liabilities ($563.2M).

Long Term Liabilities: GWR's short term assets ($618.7M) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: GWR's debt to equity ratio (60.2%) is considered high.

Reducing Debt: GWR's debt to equity ratio has reduced from 71.3% to 60.2% over the past 5 years.

Debt Coverage: GWR's debt is well covered by operating cash flow (24.2%).

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

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.


Stability and Growth of Payments

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

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

11.7yrs

Average management tenure


CEO

Jack Hellmann (49yo)

12.5s

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 ($USD5.64M) is about average for companies of similar size in the US market ($USD6.46M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Hellmann
Chairman12.5yrsUS$5.64m0.84% $53.8m
Timothy Gallagher
Chief Financial Officer14.58yrsUS$2.11m0.11% $6.9m
Allison Fergus
General Counsel & Secretary13.17yrsUS$1.99m0.12% $8.0m
Matthew Walsh
Executive Vice President of Global Corporate Development4.5yrsUS$2.16m0.20% $12.6m
Christopher Liucci
Chief Accounting Officer & Global Controller13.75yrsUS$661.42k0.035% $2.3m
Paula Henry
President of Utah Railway Company and Senior Vice President of Rocky Mountain Region11.67yrsno datano data
Michael Miller
President of North America1.17yrsno data0.058% $3.7m
Charles Noble
Chief Financial Officer of Freightliner Group Ltd2.75yrsno datano data
Neil McNicholas
Managing Director of Rail Servicesno datano datano data
Shaun Allen
Managing Director of Road Services1.75yrsno datano data

11.7yrs

Average Tenure

49yo

Average Age

Experienced Management: GWR's management team is seasoned and experienced (11.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Hellmann
Chairman12.5yrsUS$5.64m0.84% $53.8m
Ann Reese
Independent Director7.75yrsUS$216.47k0.017% $1.1m
Albert Neupaver
Independent Director4.25yrsUS$186.45k0.017% $1.1m
Joseph Pyne
Independent Director4.25yrsUS$182.66k0.011% $712.8k
Mortimer Fuller
Chairman Emeritus 2.58yrsUS$78.10k0.90% $57.4m
Mark Scudder
Independent Director16.33yrsUS$219.59k0.096% $6.1m
Cedric Bobo
Board Observer7.17yrsno datano data
Øivind Lorentzen
Lead Independent Director2.58yrsUS$216.25k0.059% $3.8m
Richard Bott
Independent Director7.17yrsUS$201.40k0.027% $1.7m
Hunter Smith
Independent Director4.75yrsUS$186.47k0.011% $720.5k

4.5yrs

Average Tenure

68yo

Average Age

Experienced Board: GWR's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

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$6.382b
  • Shares outstanding: 57.04m
  • 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 transports various commodities, including agricultural products, autos and auto parts, chemicals and plastics, coal and coke, intermodal, food and kindred products, lumber and forest products, metallic ores, metals, minerals and stone, petroleum products, pulp and paper, waste, and other commodities. It owns or leases 120 freight railroads, including 104 short line railroads and 2 regional freight railroads located in the United States, 8 short line railroads located in Canada, 3 railroads located in Australia, 1 railroad located in the United Kingdom, 1 railroad in Poland and Germany, and 1 railroads in the Netherlands with a total of approximately 16,100 miles of track. The company also operates 6,200 additional miles of track that is owned or leased by others. In addition, it operates deep sea maritime containers and provides bulk haulage, including coal, aggregates, cement, and infrastructure services. Further, the company provides rail services at approximately 40 ports; rail-ferry services in the United States Southeast and Mexico; transload services; and contract coal loading, and railcar switching and repair services for industrial customers. Genesee & Wyoming Inc. was founded in 1899 and is headquartered in Darien, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/30 23:42
End of Day Share Price2019/12/27 00:00
Earnings2019/09/30
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.