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Greenbrier Companies (GBX)
NYSE:GBX
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Greenbrier
(NYSE:GBX)75Outperform
Greenbrier (GBX) vs. S&P 500 (SPY)
Market Cap
$1.76B
Dividend Yield2.13%
Average Volume (3M)449.98K
Price to Earnings (P/E)9.7
Beta (1Y)1.46
Revenue Growth-9.47%
EPS Growth69.11%
CountryUS
Employees14,200
SectorIndustrials
Sector Strength66
IndustryTransportation
Share Statistics
EPS (TTM)5.78
Shares Outstanding31,359,165
10 Day Avg. Volume527,173
30 Day Avg. Volume449,977
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)N/A
Price to Sales (P/S)0.47
Price to Cash Flow (P/CF)-6.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$68.50Price Target Upside27.66% Upside
Rating ConsensusHold
Number of Analyst Covering2
Greenbrier Business Overview & Revenue Model
Company DescriptionThe Greenbrier Companies, Inc. (GBX) is a leading international supplier of equipment and services to the freight rail transportation markets. Headquartered in Lake Oswego, Oregon, Greenbrier designs, manufactures, and markets railroad freight car equipment in North America, Europe, and Brazil. The company also offers repair and refurbishment services for railcars and provides leasing and management services to railcar owners. Additionally, Greenbrier is involved in marine vessel construction through its subsidiary, Gunderson Marine.
How the Company Makes MoneyGreenbrier 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 demonstrates strong profitability and a solid balance sheet with zero debt, enhancing its stability and reducing financial risk. While operational cash generation is commendable, the company faces challenges with negative free cash flow due to high capital expenditures, coupled with inconsistent revenue growth, which could impact future performance.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.75
Positive
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.82
Very Positive
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.68
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.61B | 3.54B | 3.94B | 2.98B | 1.75B | 2.79B | Gross Profit |
| 606.30M | 553.50M | 441.10M | 306.00M | 231.61M | 353.13M | EBIT |
| 353.70M | 306.00M | 176.40M | 43.60M | 40.97M | 168.43M | EBITDA |
| 469.80M | 450.30M | 312.10M | 182.80M | 131.46M | 273.82M | Net Income Common Stockholders |
| 184.20M | 160.10M | 62.50M | 46.90M | 32.40M | 84.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 368.60M | 368.60M | 281.70M | 543.00M | 646.77M | 833.75M | Total Assets |
| 4.25B | 4.25B | 3.98B | 3.85B | 3.39B | 3.17B | Total Debt |
| 1.82B | 1.82B | 1.61B | 1.57B | 1.20B | 1.16B | Net Debt |
| 1.47B | 1.47B | 1.33B | 1.02B | 551.91M | 321.87M | Total Liabilities |
| 2.68B | 2.68B | 2.51B | 2.39B | 1.88B | 1.67B | Stockholders Equity |
| 1.38B | 1.38B | 1.25B | 1.28B | 1.31B | 1.29B |
| Cash Flow | Free Cash Flow | ||||
| -78.00M | -68.70M | -290.90M | -531.10M | -179.54M | 205.38M | Operating Cash Flow |
| 376.60M | 329.60M | 71.20M | -150.40M | -40.52M | 272.26M | Investing Cash Flow |
| -309.10M | -320.40M | -280.00M | -224.00M | -117.76M | 27.48M | Financing Cash Flow |
| 18.80M | 86.20M | -76.20M | 244.90M | -22.74M | 216.46M |
Greenbrier Technical Analysis
Negative
53.66
Price Trends
62.15
Negative
61.82
Negative
55.08
Negative
Market Momentum
-2.73
Positive
28.94
Positive
26.81
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 53.66 is below the 20-day moving average (MA) of 59.07, below the 50-day MA of 62.15, and below the 200-day MA of 55.08, indicating a bearish trend. The MACD of -2.73 indicates Positive momentum. The RSI at 28.94 is Positive, neither overbought nor oversold. The STOCH value of 26.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GBX.
Greenbrier Risk Analysis
Greenbrier disclosed 47 risk factors in its most recent earnings report. Greenbrier reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Greenbrier Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $150.43B | 22.25 | 39.95% | 2.16% | 0.54% | 6.06% | |
75 Outperform | $1.76B | 9.73 | 13.04% | 2.13% | -9.47% | 69.11% | |
73 Outperform | $11.02B | 48.08 | 7.96% | ― | 4.62% | 21.58% | |
72 Outperform | $2.54B | 18.91 | 10.59% | 3.67% | 3.21% | 29.59% | |
69 Neutral | $31.67B | 30.68 | 10.46% | 0.46% | 7.34% | 32.91% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
57 Neutral | $145.81M | ― | 156.43% | ― | 52.11% | -234.65% |
* Industrials Sector Average
Performance Comparison
GBX
Greenbrier
53.66
3.78
7.58%
RAIL
Freightcar America
7.44
4.42
146.36%
RBC
RBC Bearings
350.47
79.76
29.46%
TRN
Trinity Industries
29.44
4.83
19.63%
UNP
Union Pacific
241.52
-3.96
-1.61%
WAB
Westinghouse Air Brake Technologies
177.65
36.94
26.25%
Greenbrier Earnings Call Summary
Earnings Call Date: Jan 8, 2025 | % Change Since: -10.82% | Next Earnings Date: Apr 4, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong first-quarter performance with record revenue and significant margin improvements. Despite a decrease in backlog and some uncertainty in future demand, the company remains optimistic due to a strong sales pipeline and robust lease renewal rates. The overall sentiment is positive, with management emphasizing strategic initiatives and efficiency improvements.Highlights
Record-Breaking Revenue
Revenue in Q1 was $876 million, marking a new first-quarter record for Greenbrier.
Strong Margin Performance
Q1 EBITDA was $145 million with an aggregate gross margin of 19.8%, showing a 480 basis points year-over-year improvement.
Increased Leasing Performance
Greenbrier's lease fleet grew by 1,200 units with stable fleet utilization of 99%. Lease renewal rates continued to grow at double digits.
Strong Backlog and Order Activity
Global orders of 3,800 units worth $520 million were secured in Q1, with a backlog of 23,400 units valued at $3 billion.
Improvement in Return on Invested Capital
ROIC was 11.2%, marking a 140 basis point sequential increase.
Lowlights
Backlog Decline
Backlog decreased from $3.8 billion to $3 billion, although it is still considered strong.
Uncertain Demand Outlook
There is some uncertainty and potential softening in demand for certain railcar types and markets.
Higher Tax Rate
The quarterly tax rate increased to 37.8% due to geographic mix and unfavorable foreign currency exchange rates.
Company Guidance
During the Greenbrier Companies' Q1 2025 earnings call, the guidance for fiscal 2025 was reaffirmed, with the company projecting steady production rates and emphasizing its resilience across market conditions. In the first quarter, Greenbrier reported an EBITDA of $145 million and a gross margin of 19.8%, marking a 480 basis points improvement year-over-year, attributed to enhanced manufacturing efficiencies and favorable product mix. The company delivered 6,000 new railcars, maintained a strong lease fleet utilization of approximately 99%, and secured global orders for 3,800 units valued at $520 million. Despite a backlog of 23,400 units valued at $3 billion, Greenbrier remains optimistic about meeting its guidance, supported by a constructive demand outlook and strategic initiatives aimed at enhancing manufacturing productivity and operational efficiency. The company's liquidity position is robust at $549 million, with plans for disciplined capital allocation to drive long-term shareholder value.Greenbrier Corporate Events
DividendsBusiness Operations and Strategy
Greenbrier Announces Quarterly Dividend to Shareholders
Positive
Oct 18, 2024
Greenbrier Companies, a leader in global freight transportation, announced a quarterly cash dividend of $0.30 per share, payable on November 27, 2024, to shareholders of record by November 6, 2024. This strategic financial move highlights Greenbrier’s commitment to reward its investors while continuing its operations in North America, Europe, and Brazil.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.