Summary of The Greenbrier Companies (GBX) 2025 Conference Call Company Overview - **Company**: The Greenbrier Companies (GBX) - **Industry**: Freight transportation and manufacturing of freight rail cars - **Operations**: The company operates in the United States, Mexico, Brazil, and Europe, focusing on building, leasing, and repairing freight rail cars [4][5] Core Points and Arguments - **Business Model**: Greenbrier is primarily a manufacturing company with a leasing arm, generating approximately $3.5 billion in revenue, with $3.2 billion from manufacturing and maintenance [12][13] - **Management Shift**: The company has undergone a generational shift in leadership, focusing on balancing growth with efficiency post-pandemic, leading to improved operating margins and return on invested capital [5][18] - **Operational Efficiency**: The company has implemented various projects to enhance operational efficiency, including in-sourcing fabrication processes, which is expected to save tens of millions annually [20][19] - **Market Conditions**: Despite a flat railroad market, Greenbrier achieved nearly $5 per share in earnings, indicating strong operational performance amidst challenging conditions [21] - **Demand Dynamics**: The current market is characterized by balanced demand across various railcar types, with a focus on replacing aging fleets [27][29] Industry Insights - **Railcar Demand**: The industry is producing around 40,000 railcars, with a stable demand across different types, including boxcars, grain hoppers, and tank cars [26][28] - **Leasing Market**: The leasing market has shown substantial strength, with lease rate renewals performing in the double digits year-over-year, indicating a robust environment for leasing [36][37] - **Investment Grade Customers**: The primary end users of leased railcars are investment-grade companies, which represent a significant portion of the business, leading to a stable demand for leasing [32][33] Additional Important Points - **Tariffs and Supply Chain**: The company is actively managing the impact of tariffs and has shifted its supply chain to North America to mitigate risks associated with international sourcing [49][50] - **Inflation Management**: Greenbrier has successfully navigated inflationary pressures by passing through raw material cost increases to customers while improving operational efficiencies [51][54] - **Employee Relations**: The company emphasizes strong relationships with its workforce in Mexico, which contributes to high efficiency and innovation in manufacturing processes [59][60] Conclusion The Greenbrier Companies is strategically positioned in the freight transportation industry, focusing on manufacturing and leasing railcars. The company is navigating current market challenges through operational efficiencies, strong customer relationships, and a proactive approach to supply chain management. The outlook remains positive with stable demand and improved leasing conditions.

Group 1: The Greenbrier Companies (GBX) - The Greenbrier Companies is a leading supplier of transportation equipment and services to the railroad and related industries [1] - The company has a Zacks Rank of 1 and has seen a 13.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Greenbrier has a PEG ratio of 0.94, which is lower than the industry average of 1.97, and possesses a Growth Score of A [1] Group 2: Pilgrim's Pride Corporation (PPC) - Pilgrim's Pride Corporation is a producer of fresh and frozen meat products [2] - The company holds a Zacks Rank of 1 and has experienced a nearly 2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Pilgrim's Pride has a PEG ratio of 0.21, significantly lower than the industry average of 0.58, and also has a Growth Score of A [2] Group 3: Pitney Bowes Inc. (PBI) - Pitney Bowes Inc. provides SaaS shipping solutions, mailing innovation, and financial services [3] - The company carries a Zacks Rank of 1 and has seen a 5.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Pitney Bowes has a PEG ratio of 0.51, compared to the industry average of 3.05, and possesses a Growth Score of A [3]

Group 1 - Greenbrier Companies (GBX) has reached a key level of support and recently broke out above the 50-day moving average, indicating a short-term bullish trend [1] - The 50-day simple moving average is considered important for establishing support and resistance levels, and GBX has moved 8.5% higher over the last four weeks, suggesting potential for further gains [2] - Positive earnings estimate revisions for GBX strengthen the bullish outlook, with no estimates decreasing in the past two months and one increasing, leading to a consensus estimate increase [3] Group 2 - GBX is currently ranked as a Zacks Rank 1 (Strong Buy) stock, indicating strong investor interest and potential for future performance [2]

Group 1 - Greenbrier Companies, Inc. will present at the Stifel 2025 Transportation & Logistics Conference on February 11, 2025, in Miami, Florida [1] - The presentation will be webcast live starting at 9:20 am ET, and will be available for 90 days after the event [2] - Greenbrier is a leading international supplier of equipment and services to global freight transportation markets, with operations in North America, Europe, and Brazil [3] Group 2 - Greenbrier designs, builds, and markets freight railcars and provides wheel services, parts, maintenance, and retrofitting services primarily in North America [3] - The company owns a lease fleet of approximately 16,700 railcars, mainly originating from its manufacturing operations [3] - Greenbrier also offers railcar management, regulatory compliance services, and leasing services to railroads and other railcar owners in North America [3]

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but finding such stocks is challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Greenbrier Companies (GBX) is highlighted as a promising growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 31.1%, with projected EPS growth of 19% this year, surpassing the industry average of 14.2% [5] Group 2: Financial Metrics - Greenbrier's year-over-year cash flow growth stands at 34.2%, significantly higher than the industry average of 14% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 7.3%, compared to the industry average of 6.8% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Greenbrier, with the Zacks Consensus Estimate for the current year increasing by 13.5% over the past month [9] - The combination of a Growth Score of A and a Zacks Rank 1 positions Greenbrier favorably for potential outperformance, making it an attractive option for growth investors [11]

Core Viewpoint - Investors in the Transportation - Equipment and Leasing sector should consider Greenbrier Companies (GBX) as a more favorable investment compared to Herc Holdings (HRI) based on various valuation metrics and earnings outlook [1] Valuation Metrics - GBX has a forward P/E ratio of 11.36, while HRI has a forward P/E of 13.17, indicating that GBX may be undervalued relative to HRI [5] - The PEG ratio for GBX is 0.97, suggesting better value when considering expected earnings growth, compared to HRI's PEG ratio of 1.03 [5] - GBX's P/B ratio stands at 1.33, significantly lower than HRI's P/B of 3.82, further indicating that GBX is more attractively priced [6] Earnings Outlook - GBX currently has a Zacks Rank of 1 (Strong Buy), reflecting an improving earnings estimate revision trend, while HRI has a Zacks Rank of 5 (Strong Sell), indicating a less favorable outlook [3][7] - The improving earnings outlook for GBX positions it as a superior value option in the current market [7]

Core Viewpoint - The article discusses the advantages of using the EV-to-EBITDA metric over the traditional P/E ratio for evaluating stock valuations and identifying potential investment opportunities. Group 1: Valuation Metrics - The P/E ratio is widely used for screening stocks and determining fair market value, but it has limitations [1] - EV-to-EBITDA is considered a more comprehensive valuation metric as it accounts for a company's total value, including debt, and provides a clearer picture of profitability by excluding non-cash expenses [2][4] - A lower EV-to-EBITDA ratio indicates a potentially undervalued stock and is particularly useful for assessing acquisition targets [5] Group 2: Limitations of P/E and EV-to-EBITDA - P/E cannot be applied to loss-making firms and is subject to accounting manipulation, while EV-to-EBITDA is less susceptible to such issues and can be used for companies with negative net earnings [6] - EV-to-EBITDA varies across industries, making it less effective for comparing companies in different sectors; it is recommended to use it alongside other ratios like P/B, P/E, and P/S for better analysis [7] Group 3: Screening Criteria for Bargain Stocks - Screening parameters include: - EV-to-EBITDA less than industry median for cheaper valuation [8] - P/E less than industry median to find discounted stocks [8] - P/B less than industry median indicating undervaluation [8] - P/S less than industry median for attractive pricing relative to sales [9] - Estimated one-year EPS growth greater than or equal to industry median [10] - Average 20-day volume greater than or equal to 50,000 for liquidity [10] - Current price greater than or equal to $5 to ensure minimum trading value [10] - Zacks Rank of 1 or 2 indicating strong buy potential [11] - Value Score of A or B for best upside potential [11] Group 4: Selected Stocks - SM Energy Company has a Zacks Rank of 1 and an expected earnings growth rate of 19.4% for 2025 [12] - Sonoco Products Company also holds a Zacks Rank of 1 with a projected earnings growth rate of 22.1% for 2025 [13] - El Pollo Loco has a Zacks Rank of 1 and an expected earnings growth rate of 14.5% for 2025 [14] - The Greenbrier Companies has a Zacks Rank of 1 and an expected earnings growth rate of 18.9% for fiscal 2025 [15] - Plains GP Holdings has a Zacks Rank of 2 with an impressive expected earnings growth rate of 100.2% for 2025 [16]

Group 1: Pitney Bowes Inc. (PBI) - The company has a Zacks Rank of 1, indicating strong performance potential [1] - The Zacks Consensus Estimate for its current year earnings has increased by 5.3% over the last 60 days [1] - Pitney Bowes has a PEG ratio of 0.50, significantly lower than the industry average of 3.21, suggesting strong growth potential relative to its valuation [1] - The company possesses a Growth Score of B, indicating favorable growth characteristics [1] Group 2: Pilgrim's Pride Corporation (PPC) - The company also holds a Zacks Rank of 1, reflecting strong growth prospects [2] - The Zacks Consensus Estimate for its current year earnings has risen by 4.3% over the last 60 days [2] - Pilgrim's Pride has a PEG ratio of 0.20, which is much lower than the industry average of 0.60, indicating a strong growth outlook [2] - The company has a Growth Score of A, highlighting its robust growth characteristics [2] Group 3: The Greenbrier Companies, Inc. (GBX) - The company carries a Zacks Rank of 1, suggesting strong investment potential [3] - The Zacks Consensus Estimate for its current year earnings has increased by 13.5% over the last 60 days, indicating positive earnings momentum [3] - The Greenbrier Companies has a PEG ratio of 1.02, compared to the industry average of 2.07, suggesting it is relatively undervalued [3] - The company possesses a Growth Score of A, reflecting strong growth attributes [3]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Greenbrier Companies (GBX) - Greenbrier Companies currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Performance Metrics - Over the past week, GBX shares increased by 1.29%, while the Zacks Transportation - Equipment and Leasing industry declined by 2.44% [6] - In the last quarter, GBX shares rose by 26.41%, and over the past year, they increased by 44.82%, compared to the S&P 500's performance of 0% and 23.73% respectively [7] - The average 20-day trading volume for GBX is 325,775 shares, indicating a bullish trend when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for GBX increased, while none decreased, raising the consensus estimate from $5.20 to $5.90 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions noted [10] Conclusion - Given the strong performance metrics and positive earnings outlook, GBX is positioned as a promising investment opportunity with a Momentum Score of A [12]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Greenbrier Companies (GBX) Analysis - Greenbrier Companies (GBX) has shown a four-week price change of 0.5%, indicating growing investor interest [4] - Over the past 12 weeks, GBX's stock has gained 26.4%, with a beta of 1.54, suggesting it moves 54% more than the market [5] - GBX has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - GBX has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is currently trading at a Price-to-Sales ratio of 0.57, suggesting it is undervalued as investors pay only 57 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides GBX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks based on various investing styles [9]