Is GBX a high-quality business?

AlphaMadera's AlphaQuality grade scores The Greenbrier Companies, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how GBX compares to a Buffett-style quality bar.

What is The Greenbrier Companies, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to GBX based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes GBX a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

GBX - The Greenbrier Companies, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $60.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C- 48.0 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C 52.7

5yr Avg ROIC 4.5% 32/100
Operating Margin Trend +2.22 pp/yr 100/100

Capital Efficiency

Weight: 15%

C 56.4

5yr Avg ROE 6.6% 43/100
5yr Share-Count CAGR -1.2% 81/100

Growth Quality

Weight: 15%

A- 85.1

5yr Revenue CAGR 16.6% 94/100
5yr EPS CAGR 60.4% 100/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

F 0.0

5yr FCF Margin -7.4% 0/100
5yr FCF/NI Conversion -4.33x 0/100

Balance Sheet

Weight: 20%

C- 50.6

Net Debt / EBITDA 2.92x 52/100
Interest Coverage (EBIT/Int) 4.32x 58/100
Altman Z-Score 1.95 40/100

Stability

Weight: 15%

D+ 40.8

EPS Volatility (σ/μ) 0.58 24/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 3/5 40/100

1 of 3 gurus held; 1 added; 2 full exits.

Holders: 1 -2
Avg Δ position: +16.0%
New buys: 0
Full exits: 2

Laffont sold -100%
Wood sold -100%
Cooperman increased +16%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.