The Greenbrier Companies is a designer, manufacturer and marketer of railroad freight car equipment, ocean-going marine barges and a leading provider of wheel services, railcar refurbishment and parts, leasing and other services to the railroad and related transportation industries. It operates an integrated business model that combines freight car manufacturing, wheel services, repair and refurbishment, component parts reconditioning, leasing and fleet management services. Its model is designed to provide customers with a comprehensive set of freight car solutions utilizing its engineering, mechanical and technical capabilities as well as its experienced personnel. The company believes its integrated model is difficult to duplicate and provides greater value for its customers.
The stock has fallen to 77.4% FV which breaches the 80% FV mark for consideration of a buy. Once placed on the Buy Watch list the stock will be monitored for a reversion directional change and moved to the Buy Consideration List. The company is rated an B+ on MAB Sensitivity (Merged Acquired Bought) placing it in the top 15% in terms of probability of such an event occurring. If the stock continues below FV without a reversion directional change we would expect the company to be an acquisition target. It is currently ranked #264 in the S&P 1500 Index®. Earlier this year the stock also became part of the S&P 600 Smallcap Index®. The company is trading at $26.13/share which is more reminiscent of 2005 price levels. It is considered an “Aspirational” stock that exhibits higher price change movement than the market. The dividend yield is more than double the market at 4.36%.