Genesee & Wyoming Inc ($GWR) Cautious Buy or Hold to $70 Confident Investor Rating: Fair

Company name Genesee & Wyoming Inc
Stock ticker GWR
Live stock price [stckqut]GWR[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Fair
EPS growth Poor
P/E growth Good
EBIT growth Poor

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $84.97
Target stock price (averages with growth) $71.4
Target stock price (averages with no growth) $37.07
Target stock price (manual assumptions) $76.67

The following company description is from Google Finance: http://www.google.com/finance?q=gwr

Genesee & Wyoming Inc. owns and operates freight railroads across the world. As of December 31, 2016, the Company owned or leased 122 freight railroads worldwide that are organized in 10 operating regions. The Company operates through three segments, which include North American Operations, Australian Operations and U.K./European Operations. In North America, the Company has operations in eight regions, such as Central, Coastal (which includes industrial switching and port operations), Midwest, Mountain West (which includes industrial switching operations), Northeast, Pacific, Southern and Canada. Outside the United States, the Company has operations in two regions: Australia and the United Kingdom/Europe (which consists of operations in the United Kingdom, Belgium, Germany, the Netherlands and Poland, as well as the provision of management and technical support through Freightliner to Saudi Arabia Railway Company).

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Genesee & Wyoming Inc as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I am removing this company from my Watch List as I think there are better places to invest.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Genesee & Wyoming Inc calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $73.51
  • Growth: 0.11
  • Current EPS (TTM): $2.29
  • P/E: 32
  • Future EPS Calc: $3.85
  • Future Stock Price Calc: $123.48
  • Target stock price: $76.67

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I hope that this makes you a Confident Investor.

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