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Greenbrier Companies NYSE: GBX Is the action that you buy for growth because it does not grow.

You are buying this company from his strategic business and industry position, which left its more diversified business with an outstanding and growing repeating stream of income. The shift comes from a predominantly production business to one, which includes full services for the options for service and leasing on the railway.

The leasing business is crucial for the prospect, providing visibility, cash flow and higher margin through long -term contracts. Greenbrier, of course, corresponds to this transport market because it can quickly increase or reduce the production of rented cars to meet needs.

The results of FQ2 2025 on top and results were weaker than expected. Nevertheless, they emphasize the change of company, and the income falls more than expected, and an increase in income. The adjusted EPS company grew by 65% ​​to $ 1.69 compared to $ 1.03 in the previous year, and the cash flow is also solid.

The cash flow decreased slightly compared to the previous year, but enough to maintain the balance of health and capital income. A The return of capital is reliable And another critical factor for this investment.

Greenbrier dividends are growing safely

The profitability of the capital Greenbrier is primarily dividends. The profitability is almost 2.9% in early April, and a safe payment based on metric. It is expected that the company will pay only 25% of the prospects for income for 2025 over the next 12 months, which is stable, despite the decrease in revenue.

Company increased his forecast for a margin by 100 basic pointscompensating for the predicted weakness of the top line. Management, in the same way, takes a conservative position, possibly underestimating the power of its leasing segment. Greenbrier says that the supply remains dense and expects this segment to remain strong.

The income guide was reduced from the rationalization of the business. The company will close the factory in Romania, focusing on its investments in other objects and effectively reducing its capabilities in the EU. This step will affect income as soon as the current quarter, but there will be Positively affects the operational center And improve the stability of dividend distribution.

As for tariffs, they are not a direct threat due to production corresponding to USMCA, but an indirect threat that can affect the margin.

Greenbrier balance is strong and capable of withstanding market decline, which he does not experience. The main points of the second quarter include an increase in funds, receivables and current and general assets, partially compensating for an increase in obligations.

A pure result is an increase in shareholder capital of shareholders by 11% and a constantly low lever, with a long -term debt of less than 1x.

Greenbrier – deep value in the eyes of analysts

While the analyst of the Greenbrier coverage is not reliable, they are bullish.

Two analysts tracked by Marketbeat, issued over the past five months, evaluating shares as retention with the potential for 45% growth In consensus.

A critical conclusion that Low price target offers a solid 40% growth This can be unlocked later in 2025 or early 2026. Institutional activity, on the other hand, is more stable, as well as optimistic.

Institutions own more than 90% of the shares, I bought in equilibrium for seven quarters in a row and increased its activities to many years of maximum in the first quarter, since the price of shares decreased.

The price action in the early CQ2 is not impressive, but it may be at the end of its decline. The market returned to the levels that correspond to the assets in 2022, 2023 and 2024, but there is a risk.

The price of GBX shares is also lower than critical resistance goals and medium -sized movements, which can keep it under pressure until more optimistic news is released.

Before considering Greenbrier, you will want to hear it.

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