GREENBRIER COMPANIES INC (GBX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GBX - US3936571013 - Common Stock
51.04 USD
+0.4 (+0.79%)
51.04 USD
0 (0%)
GBX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. While GBX is still in line with the averages on profitability rating, there are concerns on its financial health. GBX is valued quite cheap, but it does not seem to be growing. GBX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- GBX had positive earnings in the past year.
- 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
- GBX's Return On Assets of 4.31% is in line compared to the rest of the industry. GBX outperforms 55.30% of its industry peers.
- GBX has a Return On Equity of 12.01%. This is in the better half of the industry: GBX outperforms 69.70% of its industry peers.
- GBX has a Return On Invested Capital of 5.20%. This is comparable to the rest of the industry: GBX outperforms 42.42% of its industry peers.
- GBX had an Average Return On Invested Capital over the past 3 years of 6.26%. This is below the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 12.01% | ||
| ROIC | 5.2% |
ROA(3y)3.34%
ROA(5y)2.44%
ROE(3y)9.98%
ROE(5y)7.22%
ROIC(3y)6.26%
ROIC(5y)4.32%
1.3 Margins
- GBX's Profit Margin of 6.03% is in line compared to the rest of the industry. GBX outperforms 54.55% of its industry peers.
- In the last couple of years the Profit Margin of GBX has grown nicely.
- The Operating Margin of GBX (8.99%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of GBX has grown nicely.
- With a Gross Margin value of 17.50%, GBX is not doing good in the industry: 78.03% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of GBX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.99% | ||
| PM (TTM) | 6.03% | ||
| GM | 17.5% |
OM growth 3Y57.6%
OM growth 5Y14.86%
PM growth 3Y58.73%
PM growth 5Y29.12%
GM growth 3Y22.19%
GM growth 5Y8.19%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GBX is destroying value.
- Compared to 1 year ago, GBX has less shares outstanding
- The number of shares outstanding for GBX has been reduced compared to 5 years ago.
- The debt/assets ratio for GBX has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.84 indicates that GBX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of GBX (1.84) is worse than 70.45% of its industry peers.
- The Debt to FCF ratio of GBX is 13.78, which is on the high side as it means it would take GBX, 13.78 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of GBX (13.78) is worse than 62.12% of its industry peers.
- GBX has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
- GBX has a worse Debt to Equity ratio (1.15) than 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 13.78 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.63
WACC8.29%
2.3 Liquidity
- GBX has a Current Ratio of 1.61. This is a normal value and indicates that GBX is financially healthy and should not expect problems in meeting its short term obligations.
- GBX has a Current ratio of 1.61. This is in the lower half of the industry: GBX underperforms 68.94% of its industry peers.
- GBX has a Quick Ratio of 1.61. 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 Quick ratio (0.91) than 68.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- The earnings per share for GBX have decreased by -0.17% in the last year.
- The Earnings Per Share has been growing by 26.18% on average over the past years. This is a very strong growth
- The Revenue for GBX has decreased by -14.99% in the past year. This is quite bad
- The Revenue has been growing slightly by 3.02% on average over the past years.
EPS 1Y (TTM)-0.17%
EPS 3Y65.49%
EPS 5Y26.18%
EPS Q2Q%-33.72%
Revenue 1Y (TTM)-14.99%
Revenue growth 3Y2.86%
Revenue growth 5Y3.02%
Sales Q2Q%-19.39%
3.2 Future
- The Earnings Per Share is expected to decrease by -2.96% on average over the next years.
- The Revenue is expected to decrease by -1.85% on average over the next years.
EPS Next Y-31.87%
EPS Next 2Y-15.3%
EPS Next 3Y-2.96%
EPS Next 5YN/A
Revenue Next Year-9.25%
Revenue Next 2Y-5.12%
Revenue Next 3Y-1.85%
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
- A Price/Earnings ratio of 8.92 indicates a reasonable valuation of GBX.
- Based on the Price/Earnings ratio, GBX is valued cheaper than 96.97% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GBX to the average of the S&P500 Index (27.25), we can say GBX is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.29 indicates a reasonable valuation of GBX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GBX indicates a rather cheap valuation: GBX is cheaper than 96.21% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, GBX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
- 96.21% of the companies in the same industry are more expensive than GBX, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GBX indicates a rather cheap valuation: GBX is cheaper than 89.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.42 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
- GBX's earnings are expected to decrease with -2.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-15.3%
EPS Next 3Y-2.96%
5. Dividend
5.1 Amount
- GBX has a Yearly Dividend Yield of 2.52%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.01, GBX pays a better dividend. On top of this GBX pays more dividend than 91.67% of the companies listed in the same industry.
- GBX's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
- The dividend of GBX has a limited annual growth rate of 3.42%.
- GBX has been paying a dividend for at least 10 years, so it has a reliable track record.
- GBX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.42%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
- GBX pays out 16.68% of its income as dividend. This is a sustainable payout ratio.
DP16.68%
EPS Next 2Y-15.3%
EPS Next 3Y-2.96%
GREENBRIER COMPANIES INC / GBX FAQ
What is the fundamental rating for GBX stock?
ChartMill assigns a fundamental rating of 4 / 10 to GBX.
What is the valuation status for GBX stock?
ChartMill assigns a valuation rating of 7 / 10 to GREENBRIER COMPANIES INC (GBX). This can be considered as Undervalued.
Can you provide the profitability details for GREENBRIER COMPANIES INC?
GREENBRIER COMPANIES INC (GBX) has a profitability rating of 5 / 10.
What is the expected EPS growth for GREENBRIER COMPANIES INC (GBX) stock?
The Earnings per Share (EPS) of GREENBRIER COMPANIES INC (GBX) is expected to decline by -31.87% in the next year.
Can you provide the dividend sustainability for GBX stock?
The dividend rating of GREENBRIER COMPANIES INC (GBX) is 7 / 10 and the dividend payout ratio is 16.68%.