Investopedia: A Thick Order Book Is Only Part Of The Story For Greenbrier

There are certain industries were achieving sustainable economic returns and steady equity appreciation is nearly impossible, and rail car manufacturing seems to be one of them. Among the major manufacturers, a list that includes Greenbrier (NYSE:GBX), Trinity Industries (NYSE:TRN), American Railcar (Nasdaq:ARII) and FreightCar (Nasdaq:RAIL), two straight years of double-digit operating margins and/or return on invested capital is exceedingly rare.

With that in mind, investors would probably do well to approach Greenbrier with caution. While the company's move into tank car manufacturing should lead to higher revenue as crude oil producers turn to rails to move their product, the company has its work cut out to improve long-term margins and returns on capital. Although there could still be a trading opportunity in these shares, investors considering a long-term commitment should take a long look at the very poor historical industry returns.

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http://www.investopedia.com/stock-analysis/040413/thick-order-book-only-part-story-greenbrier-gbx-arii-trn-rail.aspx