Greenbrier Companies Stock Fair Value – Greenbrier Companies Stock: High Risk, Low Reward

November 14, 2023

Categories: Intrinsic Value, RailroadsTags: , , Views: 189

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Greenbrier Companies ($NYSE:GBX) is a global transportation equipment company that designs, manufactures, and markets freight railcars and marine barges. While Greenbrier Companies stock can be a high-risk, high-reward investment, the reality is that the return on investment from Greenbrier Companies stock is often subpar when compared to the amount of risk involved. With a high-risk investment like Greenbrier Companies stock, investors must be diligent in researching and understanding the company. Greenbrier Companies stock has experienced significant fluctuations over the past few years. This volatility has left some investors with a poor return on their investment due to the amount of risk involved.

Moreover, Greenbrier Companies has a habit of issuing new shares of stock to raise capital, which can further dilute the stock’s value over time. Furthermore, the company’s debt level has risen significantly in recent years, further adding to the uncertain nature of investing in Greenbrier Companies stock. While investors looking for a high-risk, high-reward investment may find Greenbrier Companies stock appealing, they should understand that the return on investment is often low when compared to the amount of risk involved. As such, investors should carefully consider their risk tolerance before investing in Greenbrier Companies stock.

Price History

Greenbrier Companies stock is seen as a high risk, low reward investment. On Friday, it opened at $36.0 and closed at $36.3, representing a 1.6% increase from the previous closing price of 35.8. Despite this small bump, the stock is considered to have a lower than average potential for reward.

This could be partially attributed to the company’s uncertain future in light of market volatility and global economic issues. As such, it is best to approach any potential investment in Greenbrier Companies with caution due to the high risk associated with it. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Greenbrier Companies. More…

    Total Revenues Net Income Net Margin
    3.94k 62.5 2.2%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Greenbrier Companies. More…

    Operations Investing Financing
    71.2 -280 -76.2
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Greenbrier Companies. More…

    Total Assets Total Liabilities Book Value Per Share
    3.98k 2.51k 40.63
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Greenbrier Companies are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    12.2% 11.5% 4.3%
    FCF Margin ROE ROA
    -7.4% 8.6% 2.7%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Greenbrier Companies Stock Fair Value

    At GoodWhale, we’ve taken a deep dive into GREENBRIER COMPANIES‘ financials to provide you with an informative analysis. By running our proprietary Valuation Line, we’ve determined that the fair value of GREENBRIER COMPANIES shares is around $63.7. In this case, we believe that the stock is a great buy. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    Greenbrier Companies Inc is an international market leader in the manufacturing and marketing of transportation equipment and services. It operates in the railcar and marine manufacturing industries and provides products and services to railroads, leasing companies, shippers, and other transportation companies. Its main competitors are FreightCar America Inc, National Express Group PLC, and Engenco Ltd. All of these companies are dedicated to providing quality transportation equipment and services to their customers.

    – FreightCar America Inc ($NASDAQ:RAIL)

    FreightCar America Inc. is a leading manufacturer of freight railcars and other equipment used in the rail industry. The company has a market cap of 55.89M as of 2022, which indicates that it is a small-capitalized business. FreightCar America Inc. also has a Return on Equity of 22.57%, which is considered to be a strong indicator of the company’s financial health and success. This indicates that the company is managing its resources effectively and efficiently, allowing it to generate significant returns on its investments. Overall, FreightCar America Inc. appears to be well-positioned to benefit from the growing demand for freight railcars and other equipment used in the rail industry.

    – National Express Group PLC ($LSE:NEX)

    National Express Group PLC is a global transportation company that provides bus, coach, rail, and air services in the United Kingdom, Spain, North America, and Germany. It is one of the largest public transport operators in the world, with a market cap of 780.5M as of 2022. The company has a Return on Equity (ROE) of 1.44%, which is below the average for the industry. This suggests that investors are not gaining as much return from their investments compared to other companies in the sector. National Express Group PLC has been able to maintain a strong financial position despite the challenging economic conditions it has faced in recent years. It remains committed to providing quality and reliable services to its customers and shareholders.

    – Engenco Ltd ($ASX:EGN)

    Engenco Ltd is an Australian industrial engineering, mining, and rail services provider. The company specializes in the design, manufacture, and maintenance of mining, transport, and other large-scale industrial equipment. Engenco Ltd has a strong market capitalization of $132.57M as of 2022, which demonstrates the company’s financial strength and stability. Furthermore, Engenco’s Return on Equity (ROE) of 2.95% is indicative of their ability to generate profits from their investments. This indicates that Engenco is a reliable and profitable company.

    Summary

    Greenbrier Companies is a publicly traded company that manufactures and repairs railcars and marine vessels. Investors considering this stock should be aware of the risk they are taking on as Greenbrier Companies has underperformed in the market in comparison to its peers. The company has seen revenue decline over the past few quarters and has reported losses in recent quarters. Furthermore, the company’s debt-to-equity ratio has increased due to higher borrowing costs.

    Investors should be aware that Greenbrier Companies carries a higher risk compared to its peers. While the company may offer short-term gains from time to time, the risk-return profile of the stock is too high and too uncertain for most investors at this time.

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