The Greenbrier Companies and Trinity Industries compete with each other in the railroad freight car business so I thought it would be constructive to compare their fundamentals to see how each company stacks up against the other. These two companies are not perfect matches because each company has additional lines of business that are different from each other, but I think there's enough similarity in their products and services that the comparison of the two companies would be useful in analyzing their values.
| The Greenbrier Cos design, manufacture, and market railroad freight car equipment in North America and Europe. Its Manufacturing Segment offers double-stack intermodal railcars; tank cars; auto-max railcar, multi-max auto rack, and flat cars for automotive transportation; conventional railcars, such as boxcars, covered hopper cars, center partition cars, bulkhead flat cars, and solid waste service flat cars; and pressurized tank cars, non-pressurized tank cars, gondolas and coil cars, coal cars, sliding wall cars, and automobile transporter cars; and marine vessels, including conventional deck barges, double-hull tank barges, railcar/deck barges, barges for aggregates, and other heavy industrial products and dump barges. The company’s Wheels, Repair & Parts segment provides wheel services, including reconditioning of wheels and axles, new axle machining and finishing, and axle downsizing; heavy railcar repair and refurbishment, as well as routine railcar maintenance; and repair, refurbishment, and retrofitting of railcars for third parties. This segment also reconditions and manufactures railcar cushioning units, couplers, yokes, side frames, bolsters, and various other parts, as well as produces roofs, doors, and associated parts for boxcars. Its Leasing & Services segment offers operating leases and ‘by the mile’ leases for a fleet of approximately 8,600 railcars; and management services, including railcar maintenance management, accounting services, fleet management, administration, and railcar remarketing. This segment owns or provides management services to a fleet of approximately 246,000 railroads, shippers, carriers, institutional investors and other leasing and transportation companies. The company’s customers include railroads, leasing companies, financial institutions, shippers, carriers, and transportation companies. The Greenbrier Companies was founded in 1974 and is headquartered in Lake Oswego, Oregon. (Summary) (Company) (Chart) 19 October 2015 Price $36.26 1yr Target $52.67 Analysts 9 Dividend $0.60 Payout Ratio 11.21% 1yr Cap Gain 45.25% Yield 1.65% 1yr Tot Return 46.90% EPS (ttm) $5.35 EPS next yr $6.22 EPS next 5yr 12.33% 1yr Potential $76.69 P/E 6.78 PEG 0.55 Beta 2.62 Market Cap $1.07 Bil Revenues $2.46 Bil Earnings $173.30 Mil Profit Margin 7.03% 1yr EarnGR --- 3yr EarnGR 140.76% 5yr EarnGR --- 1yr DivGR 0.00% 3yr DivGR --- 5yr DivGR --- Quick Ratio --- Current Ratio --- Debt/Equity 0.65 ROA 10.70% ROE 30.90% | Trinity Industries provides various products and services for the energy, transportation, chemical, and construction sectors in the United States and internationally. Its Rail Group segment offers railcars, including autorack, box, covered hopper, gondola, intermodal, tank, and open hopper cars; and couplers, axles, and other equipment, as well as railcar maintenance services. This segment serves railroads, leasing companies, and industrial shippers of various products. The company’s Railcar Leasing and Management Services Group segment leases tank and freight railcars to industrial shippers and railroads; provides management, maintenance, and administrative services; and manages railcar fleets on behalf of third parties. As of December 31, 2014, this segment had a fleet of 75,930 owned or leased railcars. Its Construction Products Group segment offers highway products, such as guardrail, crash cushions, and other protective barriers; and aggregates, including expanded shale and clay, crushed stone, sand and gravel, asphalt rock, and other products, as well as other steel products for infrastructure-related projects. This segment also provides hot-dip galvanizing services to fabricated steel materials manufacturers; and trench shields and shoring products for the construction industry, as well as construction equipment for the mining industry. The company’s Energy Equipment Group segment manufactures structural wind towers; utility steel structures for electricity transmission and distribution; ambient and cryogenic storage and distribution containers; and tank heads for pressure and non-pressure vessels. Its Inland Barge Group segment provides deck barges, and open or covered hopper barges to transport grain, coal, and aggregates; and tank barges to transport crude oil, chemicals, and petroleum products, as well as fiberglass reinforced lift covers for grain barges. The company was founded in 1933 and is headquartered in Dallas, Texas. (Summary) (Company) (Chart) 19 October 2015 Price $26.45 1yr Target $34.22 Analysts 9 Dividend $0.44 Payout Ratio % 1yr Cap Gain 29.37% Yield 1.66% 1yr Tot Return 31.03% EPS (ttm) $4.23 EPS next yr $3.97 EPS next 5yr 10.00% 1yr Potential $39.70 P/E 6.25 PEG 0.63 Beta 2.07 Market Cap $4.09 Bil Revenues $6.53 Bil Earnings $658.10 Mil Profit Margin 10.07% 1yr EarnGR 76.05% 3yr EarnGR 67.35% 5yr EarnGR --- 1yr DivGR 38.88% 3yr DivGR 28.59% 5yr DivGR 18.57% Quick Ratio --- Current Ratio --- Debt/Equity 1.01 ROA 7.60% ROE 21.30% |
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