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

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $144.76
Target stock price (averages with growth) $131.38
Target stock price (averages with no growth) $59.73
Target stock price (manual assumptions) $118.4

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

Genesee & Wyoming Inc., owns and operates short line and regional freight railroads and provides railcar switching and other rail-related services in the United States, Australia, Canada, the Netherlands and Belgium. In addition, the Company operates a longer-haul railroad that runs approximately 1,400 miles between Tarcoola in South Australia and Darwin in the Northern Territory of Australia. As of December 31, 2012, the Company operated in 39 states in the United States, four Australian states, one Australian territory and four Canadian provinces and provides rail service at 35 ports in North America, Australia and Europe. In May 2014, the Company announced that its subsidiary, Rapid City, Pierre & Eastern Railroad, Inc. (RCP&E) has completed the acquisition of the west end of the Dakota, Minnesota & Eastern (DM&E) rail line from Canadian Pacific.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Genesee & Wyoming Inc.

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: $93.75
  • Growth: 0.15
  • Current EPS (TTM): $3.95
  • P/E: 24
  • Future EPS Calc: $7.94
  • Future Stock Price Calc: $190.67
  • Target stock price: $118.39

I hope that this makes you a better investor. [/s2If]