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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (57601)	8/30/2016 5:17:53 PM
From: Graham Osborn	Read Replies (1) of 78817

Re: GBX/ Greenbrier Companies Inc EKS, just curious if you ever looked at GBX. I took a position yesterday - same industry/ subindustry as TRN but seems to have gotten even more clobbered by the recent energy slump. High level: cash/ cap 25% D/ E 30% EV/ Rev 0.42 EV/ EBITDA 2 EV/ FCF 4 PE 5 ROE 30%, ROA 12%, ROIC 18% rev growth 30% tang book growth 60% "Assuming" a cyclical downturn, their operating metrics should come down and those multiples will look less nice/ be negative. Still, it seems to me like there is more than a little margin of safety here. There is an EPA query pending with an OBS liability of undetermined magnitude, but the maximum cleanup cost seems manageable if it is spread out among the companies named. So there is some legal/ regulatory/ risk similarly to TRN. Interestingly the stock has not rallied as much as TRN since the start of the year, although leverage may account for some of that. I don't see it searching the board. Curious if anyone else has evaluated/ owns this little company.

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