This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Is Greenbrier's Stunning Oil-by-Railroad Rally Over Yet, or Can It Roll On?

NEW YORK (TheStreet) -- Shares of Greenbrier (GBX), one of the biggest providers of transportation equipment and services to the North American railroad industry, have doubled this year. The stock was trading Tuesday at $65.45 as of 10:15 a.m.

But can the shares go any higher?

Last week, Greenbrier released its quarterly results that came in well over analysts' estimates. The company continues to grow based on strength in the U.S. energy and automobile industries. Moreover, the U.S. government is expected to introduce new regulations related to safety of crude-by-rail shipments, which should have a positive impact on Greenbrier's order book.

Evaluating Toyota's Hydrogen Fuel Cell Car Gamble

Procter & Gamble's Alan Lafley on Activist Investors' Watch List

Why Apple Shares Remain a Bargain Despite Reaching New Highs

These ETFs May Be the Only Bargains Left to Buy

Greenbrier's shares have risen by 100% this calendar year, closing at $65.85 on Monday. However, the company has lower enterprise value to annualized operating income and annualized revenues ratios as compared to the average of its biggest peers, American Railcar Industries (ARII), Westinghouse Air Brake Technologies (WAB) and Trinity Industries (TRN).

In other words, Greenbrier still has room for upside.

 

Symbol

EV-to-EBIT

EV-to-Revenues

American Railcar Industries

ARII

11.57

2.32

Wabtec Corp

WAB

16.91

2.96

Trinity Industries

TRN

5.83

1.56

Average

 

11.44

2.28

Greenbrier Companies

GBX

11.33

1.00

Greenbrier manufactures and sells its railroad freight-cars and equipment mainly in North America. The company reports its revenues under three segments: manufacturing, the backbone of Greenbrier; wheels, repairs and parts, which was responsible for more than a quarter of its annual revenues in 2013; and a small leasing and services business.

Over the last three years, Greenbrier's growth has been driven by the manufacturing segment due to increasing railcar deliveries. In 2013, the company reported manufacturing revenues of $1.2 billion, up more than 68% from 2011. On the other hand, the other two segments witnessed growth of less than 4% in the same period.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,138.71 -33.97 -0.20%
S&P 500 1,990.57 -3.72 -0.19%
NASDAQ 4,519.5970 -8.0920 -0.18%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs