Greenbrier Companies (GBX:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Greenbrier Companies(GBX:NYS)

Industrials:Railroads

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$47.34 (USD) 29/10/2018

Weighted Valuation
$58.68 (USD)

Overall Rating
Undervalued by 24.0%

Valuation Models Analyst Consensus: $65.50 (USD)
(in order of importance) Adjusted Book Value: $52.83 (USD)
Multiples: $49.95 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (GBX:NYS USD)

Price 47.34
Range 46.73 – 50.38
52 week 43.85 – 64.40
Open 49.52
Vol / Avg. 1.05M/575466
Mkt cap 1.52B
P/E 9.12
Div/yield 0.96/0.02
EPS 4.68
Shares 32.19M
Beta 1.75

Company Description

Greenbrier Companies Inc designs, manufactures and markets railroad freight car equipment in North America and Europe, marine barges in North America and provides wheel services, railcar refurbishment, and parts, leasing and other services to the railroad. Its segments include Manufacturing, Wheels, Repair and Parts, and Leasing and Services. The company generates a majority of its revenue from the manufacturing segment.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for GBX:NYS

Using a discounted cash flow model we generated an intrinsic value of $82.85 (USD) for GBX:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

GBX:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $82.85 1% 5% 1% 5%
WACC (or Ke) 11.86 $94.70 $73.40
Terminal Growth Rate 3.00 $74.72 $93.04
Tax Rate 0.15 $89.15 $76.54
Cash Flow 395,667,602 $77.47 $88.23
Capital Expenditures 0 $82.85 $82.85
Long Term Debt 303,969,000 $83.32 $82.38

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $68.58 (USD) for GBX:NYS. We also generated a valuation of $64.46 (USD) using other metrics and comparables.
The comparable companies were Genesee & Wyoming (GWR:NYS) and Trinity Industries (TRN:NYS).

Company GBX:NYS End Date Value
Earnings/Share $4.68 (USD)
Book Value/Share $38.07 (USD)
Sales/Share $74.54 (USD)
Cash Flow/Share $8.61 (USD)
EBITDA/Share $10.02 (USD)
Price Based on Comps Adjustment Factor (%)
$41.03 (USD) -42.1
$53.11 (USD) -48.3
$147.65 (USD) -83.4
$66.90 (USD) 67.8
$105.56 (USD) 43.5
GBX:NYS Ratios Used Average Values GWR:NYS TRN:NYS
12.61 PE Ratio 8.77 9.52 8.02
1.58 PB Ratio 1.40 1.54 1.25
0.81 PS Ratio 1.98 2.44 1.52
6.98 PCF Ratio 9.41 11.64 7.18
5.51 EV to EBITDA 10.54 11.55 9.52

Multiples

Using a multiples approach we generated a valuation of  $49.95 (USD) for GBX:NYS

Company GBX:NYS End Date Value
Earnings/Share $4.68 (USD)
Book Value/Share $38.07 (USD)
Sales/Share $74.54 (USD)
Cash Flow/Share $8.61 (USD)
EBITDA/Share $10.02 (USD)
Price Based on Comps Adjustment Factor
$51.26 (USD) 0
$51.97 (USD) 0
$49.08 (USD) 0
$56.73 (USD) 0
$40.70 (USD) 0
Ratios Ratio Average
PE Ratio 10.95
PB Ratio 1.37
PS Ratio 0.66
PCF Ratio 6.59
EV to EBITDA 4.06

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  GBX:NYS for the last 10 years was  1.36

We ran the Adjusted Book Value for  GBX:NYS and generated a book value of  $38.83 (USD)
By multiplying these we get an adjusted valuation of  $52.83 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for GBX:NYS. The 2 analysts have a concensus valuation for GBX:NYS for 2019 of $65.50 (USD).

GBX:NYS Greenbrier Companies

No analyst recommendation
Current Price: not available

No analyst consensus

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


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