Here is why Greenbrier Companies (USA Stocks:GBX) can still attract investors
 | By Aina Ster | Macroaxis Story |
Our trade recommendation tool can enhance the advice provided by experts on Greenbrier Companies. It evaluates the company's growth potential against your individual risk preferences and investment timeline.
Key Points
Greenbrier Companies (GBX) continues to demonstrate strong financial performance with a return on assets of 3.99% and a net income applicable to common shares of $62.5M. Despite the industry's inherent risks, as indicated by a standard deviation of 1.91, the company's robust earnings, reflected in a PE ratio of 14.32, underscore its potential for value creation and make it a compelling investment opportunity.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Vlad Skutelnik
Greenbrier Companies (GBX), a leading player in the Industrials sector and the Railroads industry, offers a compelling investment opportunity. With a robust operating margin of 6.79% and a promising quarterly earnings growth of 6.3%, the company demonstrates strong financial health. The firm's EPS estimate for the current year stands at 4.32, indicating potential for future growth. Moreover, with a book value of 41.76 and a market valuation real value of 48.72, the stock is undervalued, suggesting a possible upside price of 50.89. As of July 6, 2024, the company employs 13.8K full-time employees and generates a revenue of $3.7B, further solidifying its position in the market. Currently, Greenbrier Companies' Days Payables Outstanding remains relatively stable compared to the previous year. The company's Income Quality is projected to increase to 1.30 in 2024, while its Enterprise Value is expected to slightly exceed $334.8 million in the same year. As conservative investors show increased interest in the machinery sector, Greenbrier Companies should be on your watchlist. In August, we will explore the potential of transforming Greenbrier Companies into a consistent growth stock. This article will also discuss various factors influencing Greenbrier Companies' products and services, and how these could impact its investors.The performance of Greenbrier Companies in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Greenbrier Companies' stock prices. When investing in Greenbrier Companies, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Greenbrier Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Greenbrier Companies carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
And What about dividends?
A dividend is the distribution of a portion of Greenbrier Companies earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Greenbrier Companies dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Greenbrier one year expected dividend income is about USD0.97 per share.
Dividend Payout Ratio is likely to rise to 0.34 in 2024, whereas Dividends Paid is likely to drop slightly above 27.5 M in 2024. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 38.4 M | 27.5 M | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.24 | 0.34 | |
| Dividend Paid And Capex Coverage Ratio | 0.75 | 0.61 |
Investing in dividend-paying stocks, such as Greenbrier Companies is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Greenbrier Companies must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Greenbrier Companies. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is Greenbrier Companies's Liquidity
Greenbrier Companies financial leverage refers to using borrowed capital as a funding source to finance Greenbrier Companies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Greenbrier Companies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Greenbrier Companies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Greenbrier Companies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Greenbrier Companies's total debt and its cash.
Greenbrier Companies Gross Profit
Greenbrier Companies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Greenbrier Companies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Greenbrier Companies Gross Profit growth over the last 10 years. Please check Greenbrier Companies' gross profit and other fundamental indicators for more details.
Breaking down Greenbrier Companies Further
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Greenbrier Companies has an asset utilization ratio of 99.14 percent. This suggests that the Company is making $0.99 for each dollar of assets. An increasing asset utilization means that Greenbrier Companies is more efficient with each dollar of assets it utilizes for everyday operations. As Warren Buffet once said, price is what you pay, value is what you get. Greenbrier Companies (GBX.US) is a prime example of this investment wisdom. Despite a challenging industry environment, the company has maintained a healthy current ratio of 2.24X and generated a cash flow from operations of $71.2M. Its shares are currently trading at a PE ratio of 14.32, which, coupled with a price to sales ratio of 0.44X, suggests that the stock is undervalued. With Wall Street's target price at $58.33, there is a potential upside of 3.27, making Greenbrier a compelling investment opportunity.
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