NEW YORK ( TheStreet) -- Greenbrier Companies (NYSE: GBX) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
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- Compared to its closing price of one year ago, GBX's share price has jumped by 40.68%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- GREENBRIER COMPANIES INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GREENBRIER COMPANIES INC increased its bottom line by earning $1.92 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($1.98 versus $1.92).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 20.1%. Since the same quarter one year prior, revenues fell by 14.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has significantly decreased to -$14.35 million or 123.31% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Machinery industry. The net income has significantly decreased by 393.1% when compared to the same quarter one year ago, falling from $19.12 million to -$56.03 million.