Greenbrier Companies Inc. (The) Common Stock (GBX)
StalwartFairStock Score: 48/100 — MIXED
Key Financials
| Current Price | $47.64 |
| Market Cap | $1.5B |
| P/E Ratio | 10.16 |
| ROE | 9.31% |
| Dividend Yield | 2.9% |
| Sector | Industrials |
Strengths
- Generates $135 million in annual free cash flow (8.8% yield on market cap)
- Attractive 2.8% dividend yield providing steady income returns
- Established organization with 11,000 employees providing operational scale
Concerns
- Revenue declining at 22.9% year-over-year signals potential demand weakness or market share loss
- Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Greenbrier Companies Inc. (The) Common Stock is a micro-cap industrials company valued at $1.5 billion. The business generates $2.9 billion in annual revenue with a 0.5% net margin and $135 million in free cash flow. From a quality standpoint, Greenbrier shows distressed Altman Z-Score of 1.2 warrants caution and modest 9% ROE. On valuation, the stock is attractively valued at 10.6x earnings, with offers a 32% margin of safety vs Graham Number of $73. Growth dynamics show revenue growing at -22.9% and profit growth of -71.1%. The 2.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 48/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $135 million in annual free cash flow (8.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer