(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.
The Market Plunger 