Greenbrier Companies, Inc. (GBX)

(13 December 2016)

GBX Business Overview

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America and Europe.

GBX Fundamentals

  • Price to Earnings: 7.21
  • Earnings Per Share: $5.67
  • Market Cap: 1.2B
  • Current Ratio: 2.29
  • Return on Equity: 22.29%
  • Dividend Yield: 2.39%
  • Total Debt to Equity Ratio: 34.77

Balance Sheet ($ in Thousands)

  • Total Assets increased $47,378.
  • Notes Payable decreased $22,460.
  • Total Equity increased $153,338.
  • Retained Earnings increased $5,548.

Income Statement ($ in Thousands)

  • Revenue increased $74,246.
  • Earnings from Operations increased $21,660.
  • Net Earnings increased $19,515.
  • Net Earnings Attributable to GBX decreased $9,619.
  • Dividends declared per share increased from $0.60 to $0.81.

Cash Flow Statement ($ in Thousands)

  • Net Cash Provided by Operating Activities increased $139,337.
  • Net Cash Used in Investing Activities decreased $75,823
  • Cash at End of Period increased $49,749.

Highlights from 10-K & News

  • Increase in Hedge Funds buying GBX.

 

Entry and Exit Points

Entry Points

  • $36
    • Solid support at $36 from previous highs going back to January ’16.

Exit Point

  • $50
    • I would sell at $50 if I believed the price was inflated compared to intrinsic value.

Overall

  • I like GBX, but I like them at $36. Under a Trump administration, railroads and railways are going to be expanding and innovating. I like GBX as a small cap value play because they also pay a dividend, have solid management, and strong financials.

 

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