Greenbrier Companies announced 3,400 new railcar orders worth about US$600 million in its fiscal fourth quarter, including expanded work with Saudi Arabian Railways. Despite the fresh bookings, the stock is down 6.31% over the past 30 days and 14.28% year to date, with a 3-year total shareholder return of 9.76% and a 5-year total shareholder return of 6.28%. Greenbrier last closed at $40.53, while the most followed analyst narrative pegs fair value at $44.67, implying roughly 9% undervaluation; that model uses an 11.52% discount rate and assumes fairly flat revenue with profit margins around 3.39%. At a P/E of 11.7x, the stock trades below the US Machinery group at 24.5x, peers at 26.7x, and the 15.5x fair ratio. The company also cited strength in the leasing market, with recurring revenue growing 39% over the last two years, alongside capacity rationalization in Europe.
Greenbrier Companies IncGreenbrier won 3,400 new railcar orders worth about $600 million in fiscal Q4, including expanded work with Saudi Arabian Railways.
Saudi Arabian Railways is named as the customer behind Greenbrier's expanded $600 million railcar order.
