Greenbrier Companies Inc (GBX) stock analysis

P/E above its 5-year median

Greenbrier Companies's P/E of 17.1 is above its own 5-year median of 15.0.

P/E below the industry

Greenbrier Companies's P/E of 17.1 is below the Transportation Equipment median of 20.3.

EV/EBITDA above its 5-year median

Greenbrier Companies's EV/EBITDA of 4.4 is above its 5-year median of 3.7.

P/B below the industry

Greenbrier Companies's price-to-book of 0.84 is below the Transportation Equipment median of 1.85.

Trading below fair value

The share price of $42.50 is below our fair value estimate of $57.17.

Margin of safety over 20%

The price is 25.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -14.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 9.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -61.3% over the last twelve months, against a 5-year average of 19.5% a year.

Growing slower than the industry

Revenue grew -24.0% over the last twelve months; the Transportation Equipment median is 9.5%.

Guidance lowered

Greenbrier Companies lowered its FY26 Revenue outlook on Apr 7, 2026.

Gross margin slipping

Gross margin was 13.6% over the last twelve months, against 18.7% a year earlier.

Return on equity under 15%

Return on equity was 5.1% over the last twelve months and averaged 8.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 8.7%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Greenbrier Companies's return on equity of 5.1% is above the Transportation Equipment median of 2.7%.

Earnings grew over 5 years

Net income grew 19.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 3.2% over the last twelve months, against a 5-year average of 3.4%.

Net margin above the industry

Greenbrier Companies's net margin of 3.2% is above the Transportation Equipment median of 1.9%.

No debt

Greenbrier Companies has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 1.34; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Greenbrier Companies paid dividends worth 3.1% of the share price over the last twelve months.

Yield below Treasuries

The 3.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Greenbrier Companies yields 3.1%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 53.9% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.