Greenbrier (GBX) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: 2.83%
• Average Volume (3M): 702.78K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.04
• Revenue Growth: -5.79%
• EPS Growth: 82.71%
• Country: US
• Employees: 14,200
• Sector: Industrials
• Sector Strength: 75
• Industry: Railroads
• EPS (TTM): 6.32
• Shares Outstanding: 31,389,406
• 10 Day Avg. Volume: 552,023
• 30 Day Avg. Volume: 702,785
• PEG Ratio: 0.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.47
• Price to Cash Flow (P/CF): -6.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.72
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $49.00
• Price Target Upside: 15.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Greenbrier's overall stock score is primarily supported by its strong financial performance and valuation, with impressive profitability and a robust balance sheet. However, declining revenue and negative cash flow, combined with weak technical indicators and certain operational challenges highlighted in the earnings call, moderate the overall score.

Greenbrier Business Overview & Revenue Model

Company Description

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, 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. The Wheels, Repair & 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 'per diem' leases for a fleet of approximately 8,800 railcars; and management services comprising railcar maintenance management, railcar accounting services, fleet management and logistics, administration, and railcar remarketing. This segment owns or provides management services to a fleet of approximately 444,000 railcars for railroads, shippers, carriers, institutional investors, and other leasing and transportation companies. The company serves railroads, leasing companies, financial institutions, shippers, carriers, and transportation companies. The Greenbrier Companies, Inc. was founded in 1974 and is headquartered in Lake Oswego, Oregon.

How the Company Makes Money

Greenbrier generates revenue primarily through the manufacturing and sale of freight railcars, which include a wide range of types such as double-stack intermodal cars, tank cars, and boxcars. A significant portion of its income also comes from providing repair and refurbishment services for railcars, which help maintain the operational efficiency of equipment for its customers. Additionally, Greenbrier earns money through its leasing and management services, whereby it leases railcars to customers and manages railcar fleets on their behalf. The company benefits from strategic partnerships and long-term contracts with major railroads, leasing companies, and industrial shippers, which ensure a steady demand for its products and services.

Greenbrier Financial Statement Overview

Summary

Greenbrier shows strong profitability and a solid balance sheet with zero debt, enhancing its stability. However, negative free cash flow due to high capital expenditures and inconsistent revenue growth pose challenges.

Income Statement

The income statement shows a solid gross profit margin of 15.84% and a strong net profit margin of 9.18% for TTM, indicating healthy profitability. The EBIT margin stands at 12.95% with an EBITDA margin of 16.25%, reflecting efficient operations. However, the revenue growth has been inconsistent, with a notable decline from the previous annual report, signaling potential challenges in sustaining revenue growth.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0, as total debt was eliminated in the TTM period, significantly reducing financial risk. The return on equity is impressive at 17.75%, showcasing strong returns for shareholders. The equity ratio of 48.44% suggests a stable financial structure with adequate equity backing the assets.

Cash Flow

Cash flow analysis reveals a negative free cash flow in the TTM, primarily due to high capital expenditures. The operating cash flow to net income ratio is 1.50, indicating good cash generation from operations relative to net income. However, the negative free cash flow growth rate reflects challenges in cash flow management.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.54B	3.94B	2.98B	1.75B	2.79B
	Gross Profit
553.50M	441.10M	306.00M	231.61M	353.13M
	EBIT
306.00M	176.40M	43.60M	40.97M	168.43M
	EBITDA
450.30M	312.10M	182.80M	131.46M	273.82M
	Net Income Common Stockholders
160.10M	62.50M	46.90M	32.40M	84.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
368.60M	281.70M	543.00M	646.77M	833.75M
	Total Assets
4.25B	3.98B	3.85B	3.39B	3.17B
	Total Debt
1.82B	1.61B	1.57B	1.20B	1.16B
	Net Debt
1.47B	1.33B	1.02B	551.91M	321.87M
	Total Liabilities
2.68B	2.51B	2.39B	1.88B	1.67B
	Stockholders Equity
1.38B	1.25B	1.28B	1.31B	1.29B
Cash Flow		Free Cash Flow
-68.70M	-290.90M	-531.10M	-179.54M	205.38M
	Operating Cash Flow
329.60M	71.20M	-150.40M	-40.52M	272.26M
	Investing Cash Flow
-320.40M	-280.00M	-224.00M	-117.76M	27.48M
	Financing Cash Flow
86.20M	-76.20M	244.90M	-22.74M	216.46M

Greenbrier Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBX, the sentiment is Negative. The current price of 42.35 is below the 20-day moving average (MA) of 43.60, below the 50-day MA of 50.16, and below the 200-day MA of 54.47, indicating a bearish trend. The MACD of -2.62 indicates Negative momentum. The RSI at 37.90 is Neutral, neither overbought nor oversold. The STOCH value of 51.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GBX.

Greenbrier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	79 Outperform	$31.49B	28.85	10.62%	0.46%	5.21%	24.15%
RBC	76 Outperform	$10.29B	44.88	8.35%	―	4.62%	21.58%
TRN	69 Neutral	$2.03B	15.14	14.57%	4.54%	3.21%	29.59%
UNP	69 Neutral	$131.00B	19.72	42.47%	2.49%	0.63%	5.93%
GBX	67 Neutral	$1.33B	6.72	14.69%	2.83%	-5.79%	82.71%
Sector *	63 Neutral	$4.30B	11.37	5.41%	214.65%	4.15%	-9.13%
RAIL	47 Neutral	$120.83M	―	156.43%	―	55.84%	-159.47%

Greenbrier Corporate Events

Greenbrier Increases Quarterly Dividend by 7%

On April 3, 2025, Greenbrier announced a 7% increase in its quarterly cash dividend, raising it to $0.32 per share, payable on May 13, 2025, to stockholders of record as of April 22, 2025. This marks the company’s 44th consecutive quarterly dividend and reflects the strength of its long-term business strategy and commitment to returning capital to shareholders.