The shares of this transportation company were recently upgraded by KeyBank to ‘Overweight’. The company has a current annual dividend yield of 3.37%, paid quarterly.
The Greenbrier Companies, Inc. (GBX)
From The Prudent Speculator
The Greenbrier Companies, Inc. (GBX), an international supplier of transportation equipment and services, operates in three segments: Manufacturing; Wheels, Repair & Parts; and Leasing &
Services. The Manufacturing segment, with facilities in the U.S., Mexico, Poland, Romania and Turkey, builds freight railcars and marine barges; the Wheels, Repair & Parts segment performs wheel and axle servicing, and railcar repair, refurbishment and maintenance; and the Leasing & Services segment owns some 8,900 railcars and provides management services for about 374,000 railcars for a variety of customers.
GBX has a backlog of 26,100 units worth an estimated $2.74 billion. In July, the company closed on the acquisition of the manufacturing business of our old friend American Railcar for $400 million, which management believes will help grow its core manufacturing and engineering business in North America.
Greenbrier shares have been crushed this year (off more than 40%) as a result of global economic slowdown fears, but we think the headwinds are already more than priced in, especially as consensus EPS forecasts stand at $3.05 for fiscal ‘19 and $3.41 for fiscal ‘20.
John Buckingham, The Prudent Speculator, www.theprudentspeculator.com, 877-817-4394, September 3, 2019