GREENBRIER COMPANIES INC (GBX) Stock Fundamental Analysis
NYSE:GBX - New York Stock Exchange, Inc. - US3936571013 - Common Stock - Currency: USD
Taking everything into account, GBX scores 4 out of 10 in our fundamental rating. GBX was compared to 128 industry peers in the Machinery industry. GBX has a medium profitability rating, but doesn't score so well on its financial health evaluation. GBX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GBX was profitable.
GBX had a positive operating cash flow in the past year.
GBX had positive earnings in each of the past 5 years.
In multiple years GBX reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.75%, GBX is in line with its industry, outperforming 53.13% of the companies in the same industry.
With a decent Return On Equity value of 13.88%, GBX is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Return On Invested Capital of GBX (9.26%) is better than 64.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GBX is significantly below the industry average of 10.31%.
The last Return On Invested Capital (9.26%) for GBX is above the 3 year average (4.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 13.88% | ||
| ROIC | 9.26% |
ROA(3y)2.18%
ROA(5y)1.81%
ROE(3y)6.76%
ROE(5y)5.31%
ROIC(3y)4.87%
ROIC(5y)3.92%
1.3 Margins
GBX has a Profit Margin (5.77%) which is comparable to the rest of the industry.
GBX's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 10.63%, GBX perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Operating Margin of GBX has grown nicely.
The Gross Margin of GBX (17.86%) is worse than 76.56% of its industry peers.
GBX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.63% | ||
| PM (TTM) | 5.77% | ||
| GM | 17.86% |
OM growth 3Y56.84%
OM growth 5Y11.71%
PM growth 3Y34.43%
PM growth 5Y14.02%
GM growth 3Y5.95%
GM growth 5Y5.45%
2. Health
2.1 Basic Checks
GBX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GBX has been increased compared to 1 year ago.
The number of shares outstanding for GBX has been reduced compared to 5 years ago.
Compared to 1 year ago, GBX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that GBX is in the distress zone and has some risk of bankruptcy.
GBX has a worse Altman-Z score (1.72) than 71.09% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that GBX has dependencies on debt financing.
With a Debt to Equity ratio value of 1.20, GBX is not doing good in the industry: 78.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC1.05
WACC8.79%
2.3 Liquidity
GBX has a Current Ratio of 0.89. This is a bad value and indicates that GBX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of GBX (0.89) is worse than 92.19% of its industry peers.
A Quick Ratio of 0.49 indicates that GBX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.49, GBX is doing worse than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
GBX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.29%, which is quite impressive.
GBX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.92% yearly.
The Revenue has decreased by -5.79% in the past year.
Measured over the past years, GBX shows a small growth in Revenue. The Revenue has been growing by 3.16% on average per year.
EPS 1Y (TTM)59.29%
EPS 3Y65.82%
EPS 5Y10.92%
EPS Q2Q%51.46%
Revenue 1Y (TTM)-5.79%
Revenue growth 3Y26.57%
Revenue growth 5Y3.16%
Sales Q2Q%-11.66%
3.2 Future
GBX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.27% yearly.
Based on estimates for the next years, GBX will show a decrease in Revenue. The Revenue will decrease by -5.41% on average per year.
EPS Next Y5.57%
EPS Next 2Y-2.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.04%
Revenue Next 2Y-5.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.08, the valuation of GBX can be described as very cheap.
Based on the Price/Earnings ratio, GBX is valued cheaper than 95.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, GBX is valued rather cheaply.
GBX is valuated reasonably with a Price/Forward Earnings ratio of 9.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GBX indicates a rather cheap valuation: GBX is cheaper than 87.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GBX to the average of the S&P500 Index (21.76), we can say GBX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GBX is valued cheaply inside the industry as 95.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
GBX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GBX has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as GBX's earnings are expected to decrease with -2.27% in the coming years.
PEG (NY)1.27
PEG (5Y)0.65
EPS Next 2Y-2.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GBX has a Yearly Dividend Yield of 2.85%.
GBX's Dividend Yield is rather good when compared to the industry average which is at 1.88. GBX pays more dividend than 91.41% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, GBX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
The dividend of GBX has a limited annual growth rate of 3.82%.
GBX has been paying a dividend for at least 10 years, so it has a reliable track record.
GBX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.82%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
18.99% of the earnings are spent on dividend by GBX. This is a low number and sustainable payout ratio.
DP18.99%
EPS Next 2Y-2.27%
EPS Next 3YN/A
44.34
-0.54 (-1.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners105%
Inst Owner Change2.87%
Ins Owners1.83%
Ins Owner Change-3.76%
Market Cap1.39B
Analysts46.67
Price Target49.98 (12.72%)
Short Float %6.51%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend1.24
Dividend Growth(5Y)3.82%
DP18.99%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.11%
Min EPS beat(2)-13.23%
Max EPS beat(2)47.44%
EPS beat(4)2
Avg EPS beat(4)17.57%
Min EPS beat(4)-13.23%
Max EPS beat(4)47.44%
EPS beat(8)5
Avg EPS beat(8)22.79%
EPS beat(12)7
Avg EPS beat(12)9.03%
EPS beat(16)11
Avg EPS beat(16)43.66%
Revenue beat(2)1
Avg Revenue beat(2)-6.97%
Min Revenue beat(2)-16.02%
Max Revenue beat(2)2.09%
Revenue beat(4)2
Avg Revenue beat(4)-5.69%
Min Revenue beat(4)-16.02%
Max Revenue beat(4)3.74%
Revenue beat(8)5
Avg Revenue beat(8)-1.39%
Revenue beat(12)9
Avg Revenue beat(12)3.45%
Revenue beat(16)11
Avg Revenue beat(16)3.09%
PT rev (1m)-25.38%
PT rev (3m)-25.38%
EPS NQ rev (1m)-15.45%
EPS NQ rev (3m)-15.45%
EPS NY rev (1m)-12.69%
EPS NY rev (3m)-12.69%
Revenue NQ rev (1m)-5.47%
Revenue NQ rev (3m)-11.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 9.34 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 4.58 | ||
| P/B | 0.95 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)6.26
EY14.12%
EPS(NY)4.75
Fwd EY10.71%
FCF(TTM)-0.97
FCFYN/A
OCF(TTM)9.68
OCFY21.82%
SpS111.86
BVpS46.52
TBVpS41.51
PEG (NY)1.27
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 13.88% | ||
| ROCE | 14.6% | ||
| ROIC | 9.26% | ||
| ROICexc | 10.17% | ||
| ROICexgc | 12.09% | ||
| OM | 10.63% | ||
| PM (TTM) | 5.77% | ||
| GM | 17.86% | ||
| FCFM | N/A |
ROA(3y)2.18%
ROA(5y)1.81%
ROE(3y)6.76%
ROE(5y)5.31%
ROIC(3y)4.87%
ROIC(5y)3.92%
ROICexc(3y)5.53%
ROICexc(5y)4.74%
ROICexgc(3y)6.3%
ROICexgc(5y)5.45%
ROCE(3y)7.54%
ROCE(5y)6.11%
ROICexcg growth 3Y91.91%
ROICexcg growth 5Y10.27%
ROICexc growth 3Y91.04%
ROICexc growth 5Y11.88%
OM growth 3Y56.84%
OM growth 5Y11.71%
PM growth 3Y34.43%
PM growth 5Y14.02%
GM growth 3Y5.95%
GM growth 5Y5.45%
F-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.55 | ||
| Cap/Depr | 276.43% | ||
| Cap/Sales | 9.52% | ||
| Interest Coverage | 4.67 | ||
| Cash Conversion | 61.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.72 |
F-Score6
WACC8.79%
ROIC/WACC1.05
Cap/Depr(3y)352.81%
Cap/Depr(5y)251.47%
Cap/Sales(3y)11.07%
Cap/Sales(5y)8.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.29%
EPS 3Y65.82%
EPS 5Y10.92%
EPS Q2Q%51.46%
EPS Next Y5.57%
EPS Next 2Y-2.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.79%
Revenue growth 3Y26.57%
Revenue growth 5Y3.16%
Sales Q2Q%-11.66%
Revenue Next Year-8.04%
Revenue Next 2Y-5.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y46.14%
EBIT growth 3Y98.52%
EBIT growth 5Y15.24%
EBIT Next Year66.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y91.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1246.04%
OCF growth 3YN/A
OCF growth 5YN/A