Latest news with #GreenbrierCompanies
Yahoo
21 hours ago
- Business
- Yahoo
Greenbrier Companies (NYSE:GBX) Is Experiencing Growth In Returns On Capital
There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So when we looked at Greenbrier Companies (NYSE:GBX) and its trend of ROCE, we really liked what we saw. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Greenbrier Companies: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = US$373m ÷ (US$4.3b - US$968m) (Based on the trailing twelve months to February 2025). Thus, Greenbrier Companies has an ROCE of 11%. By itself that's a normal return on capital and it's in line with the industry's average returns of 11%. See our latest analysis for Greenbrier Companies Above you can see how the current ROCE for Greenbrier Companies compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Greenbrier Companies . We like the trends that we're seeing from Greenbrier Companies. Over the last five years, returns on capital employed have risen substantially to 11%. Basically the business is earning more per dollar of capital invested and in addition to that, 35% more capital is being employed now too. So we're very much inspired by what we're seeing at Greenbrier Companies thanks to its ability to profitably reinvest capital. A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Greenbrier Companies has. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. In light of that, we think it's worth looking further into this stock because if Greenbrier Companies can keep these trends up, it could have a bright future ahead. One final note, you should learn about the 3 warning signs we've spotted with Greenbrier Companies (including 2 which are significant) . While Greenbrier Companies may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
08-04-2025
- Business
- Yahoo
Greenbrier Companies' (NYSE:GBX) Shareholders Will Receive A Bigger Dividend Than Last Year
The board of The Greenbrier Companies, Inc. (NYSE:GBX) has announced that the dividend on 13th of May will be increased to $0.32, which will be 6.7% higher than last year's payment of $0.30 which covered the same period. This makes the dividend yield 2.7%, which is above the industry average. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Greenbrier Companies is quite easily earning enough to cover the dividend, however it is being let down by weak cash flows. In general, we consider cash flow to be more important than earnings, so we would be cautious about relying on the sustainability of this dividend. Over the next year, EPS is forecast to expand by 2.1%. If the dividend continues along recent trends, we estimate the payout ratio will be 22%, which is in the range that makes us comfortable with the sustainability of the dividend. See our latest analysis for Greenbrier Companies The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2015, the annual payment back then was $0.60, compared to the most recent full-year payment of $1.20. This works out to be a compound annual growth rate (CAGR) of approximately 7.2% a year over that time. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Greenbrier Companies has seen EPS rising for the last five years, at 26% per annum. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock. Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. With cash flows lacking, it is difficult to see how the company can sustain a dividend payment. Overall, we don't think this company has the makings of a good income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Just as an example, we've come across 3 warning signs for Greenbrier Companies you should be aware of, and 1 of them is significant. Is Greenbrier Companies not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
10-02-2025
- Business
- Yahoo
Best Growth Stocks to Buy for February 10th
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, February 10th: The Greenbrier Companies GBX: This leading supplier of transportation equipment and services to the railroad and related industries carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.5% over the last 60 days. Greenbrier Companies, Inc. (The) price-consensus-chart | Greenbrier Companies, Inc. (The) Quote Greenbrier has a PEG ratio of 0.94 compared with 1.97 for the industry. The company possesses a Growth Score of A. Greenbrier Companies, Inc. (The) peg-ratio-ttm | Greenbrier Companies, Inc. (The) Quote Pilgrim's Pride Corporation PPC: This producer of fresh and frozen meat products carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing nearly 2% over the last 60 days. Pilgrim's Pride Corporation price-consensus-chart | Pilgrim's Pride Corporation Quote Pilgrim's Pride has a PEG ratio of 0.21 compared with 0.58 for the industry. The company possesses a Growth Score of A. Pilgrim's Pride Corporation peg-ratio-ttm | Pilgrim's Pride Corporation Quote Pitney Bowes Inc. PBI: This company that provides SaaS shipping solutions, mailing innovation, and financial services carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.3% over the last 60 days. Pitney Bowes Inc. price-consensus-chart | Pitney Bowes Inc. Quote Pitney Bowes has a PEG ratio of 0.51 compared with 3.05 for the industry. The company possesses a Growth Score of A. Pitney Bowes Inc. peg-ratio-ttm | Pitney Bowes Inc. Quote See the full list of top ranked stocks here. Learn more about the Growth score and how it is calculated here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pitney Bowes Inc. (PBI) : Free Stock Analysis Report Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report To read this article on click here. Zacks Investment Research Sign in to access your portfolio
