GREENBRIER COMPANIES INC (GBX) Stock Fundamental Analysis
NYSE:GBX - New York Stock Exchange, Inc. - US3936571013 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GBX. 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 is cheap, but on the other hand it scores bad on growth. Finally GBX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year GBX was profitable.
In the past year GBX had a positive cash flow from operations.
In the past 5 years GBX has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: GBX reported negative operating cash flow in multiple years.
1.2 Ratios
GBX has a Return On Assets of 4.75%. This is comparable to the rest of the industry: GBX outperforms 51.56% of its industry peers.
GBX has a better Return On Equity (13.88%) than 64.84% of its industry peers.
GBX's Return On Invested Capital of 9.26% is fine compared to the rest of the industry. GBX outperforms 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GBX is significantly below the industry average of 10.69%.
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.
In the last couple of years the Profit Margin of GBX has grown nicely.
Looking at the Operating Margin, with a value of 10.63%, GBX is in line with its industry, outperforming 57.03% of the companies in the same industry.
In the last couple of years the Operating Margin of GBX has grown nicely.
GBX has a worse Gross Margin (17.86%) than 77.34% of its industry peers.
In the last couple of years the Gross Margin of GBX has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GBX is creating some value.
Compared to 1 year ago, GBX has more shares outstanding
GBX has less shares outstanding than it did 5 years ago.
GBX has a worse debt/assets ratio than last year.
2.2 Solvency
GBX has an Altman-Z score of 1.71. This is a bad value and indicates that GBX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.71, GBX is doing worse than 68.75% of the companies in the same industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that GBX has dependencies on debt financing.
GBX has a worse Debt to Equity ratio (1.20) than 78.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC1.05
WACC8.78%
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.
GBX has a worse Current ratio (0.89) than 92.97% of its industry peers.
GBX has a Quick 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 Quick ratio of GBX (0.49) is worse than 92.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 59.29% over the past year.
The Earnings Per Share has been growing by 10.92% on average over the past years. This is quite good.
GBX shows a decrease in Revenue. In the last year, the revenue decreased by -5.79%.
GBX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.16% yearly.
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 small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.05% yearly.
GBX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.41% yearly.
EPS Next Y20.92%
EPS Next 2Y2.05%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.85, which indicates a rather cheap valuation of GBX.
GBX's Price/Earnings ratio is rather cheap when compared to the industry. GBX is cheaper than 94.53% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.85. GBX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.28, the valuation of GBX can be described as reasonable.
Based on the Price/Forward Earnings ratio, GBX is valued cheaper than 92.97% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.77. GBX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GBX is valued cheaper than 92.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.96 |
4.3 Compensation for Growth
GBX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GBX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.33
PEG (5Y)0.63
EPS Next 2Y2.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GBX has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
The stock price of GBX dropped by -35.32% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
GBX's Dividend Yield is rather good when compared to the industry average which is at 2.04. GBX pays more dividend than 91.41% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, GBX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
The dividend of GBX has a limited annual growth rate of 3.82%.
GBX has paid a dividend for at least 10 years, which is 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.
GBX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.99%
EPS Next 2Y2.05%
EPS Next 3YN/A
42.86
+0.44 (+1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners105%
Inst Owner Change-0.01%
Ins Owners1.83%
Ins Owner Change-6.44%
Market Cap1.35B
Analysts46.67
Price Target49.98 (16.61%)
Short Float %6.56%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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)-20.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.1%
EPS NY rev (1m)0%
EPS NY rev (3m)19.6%
Revenue NQ rev (1m)-6.14%
Revenue NQ rev (3m)-5.12%
Revenue NY rev (1m)-10.6%
Revenue NY rev (3m)-8.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 8.28 | ||
| P/S | 0.38 | ||
| P/FCF | N/A | ||
| P/OCF | 4.43 | ||
| P/B | 0.92 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 4.96 |
EPS(TTM)6.26
EY14.61%
EPS(NY)5.18
Fwd EY12.08%
FCF(TTM)-0.97
FCFYN/A
OCF(TTM)9.68
OCFY22.57%
SpS111.86
BVpS46.52
TBVpS41.51
PEG (NY)0.33
PEG (5Y)0.63
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 | 1.71 |
F-Score6
WACC8.78%
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 Y20.92%
EPS Next 2Y2.05%
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 Year73.3%
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