|Bid||0.00 x 900|
|Ask||0.00 x 1000|
|Day's Range||82.34 - 83.70|
|52 Week Range||64.31 - 84.40|
|PE Ratio (TTM)||8.76|
|Earnings Date||Jul 27, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||83.86|
This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on July 18. Index (PMI) data, output in the Industrials sector is rising.
Union Pacific Corporation's (UNP) second-quarter results benefit from increased freight revenues. However, deterioration in operating ratio remains a concern.
In Week 27, Canada’s largest freight rail Canadian National Railway’s (CNI) overall rail traffic was pushed by carload growth, not intermodal. It reported a 3.3% YoY (year-over-year) growth in Week 27’s carload volume, carrying ~59,800 railcars that week compared to ~58,000. Its competitor Canadian Pacific Railway (CP) posted a much higher YoY carload growth of 11.4% in Week 27. Canadian National Railway’s carload volume growth was much lower compared with 9.4% YoY gains recorded by Canadian railroads in Week 27. CNI’s gains were lower than US rail carriers’ 5.4% YoY growth that week.
Union Pacific (UNP), a major Western US railroad, reported a 6.1% YoY (year-over-year) carload traffic gain in Week 27. It hauled ~92,400 railcars excluding intermodal that week compared to ~87,100 in the same week last year. Compared to rival BNSF Railway’s (BRK.B) 8.2% YoY carload traffic gain, Union Pacific’s was lower. UNP’s carload gains were marginally higher than US railroads’ 5.4% YoY growth in the same category.
Every week, the AAR (Association of American Railroads) releases weekly freight traffic data submitted by major North American railroads. On July 11, it published the traffic data for Week 27, which ended on July 7. That week, US railroad companies’ (XTN) overall rail traffic, including intermodal, expanded 8.6% YoY (year-over-year.) These carriers moved ~485,200 railcars that week compared to ~446,700 in last year’s Week 27. Intermodal traffic expanded 12% YoY to ~244,700 trailers and containers from ~218,500 units.
Additionally, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on July 13. Over the last one-month, outflows of investor capital in ETFs holding GWR totaled $126 million.
Montreal, Canada headquartered Canadian National Railway Co.'s stock finished Monday's session 2.65% higher at $84.15. A total volume of 1.44 million shares was traded, which was above their three months average volume of 1.11 million shares.
Major US railroads (XLI) have taken measures to boost their operating margins in the past few months. These measures include reorganizing business units, adapting to new operational plans, idling locomotives, and reducing network size. Along with lower taxes, they should take care of the EPS numerator. On the other hand, for 2018, railroads seem to have opted to increase their dividends or initiate additional stock buybacks instead of incurring more capital expenditures. That should take care of their EPS denominator.
Of the 26 analysts covering Norfolk Southern (NSC) stock, five have recommended a “strong buy,” and five have recommended a “buy.” Fourteen analysts have given it a “hold” rating, and two have recommended a “sell.” The stock has a consensus rating of 2.5, which indicates a “buy.”
In the previous part of this series, we looked at major US railroads’ capex levels. Now we’ll check their leverage ratios after their first-quarter results. Railroads (IYJ) are an extremely capital-intensive industry with major investments in locomotives, rolling stock, locomotives, and new track. They need external funds to support their huge investments in tangible assets. Since it is a cyclical industry, higher debt levels work in railroads’ favor in times of economic upturns. However, when business prospects are dim, increased debt levels become a matter of concern.
In Week 25, Eastern US railroad Norfolk Southern’s (NSC) carload volumes rose 3.1% YoY (year-over-year), which was marginally higher than US railroad (GWR) companies’ 2.5% YoY rise. That week, it moved ~71,000 railcars, excluding intermodal units, compared to ~69,000 railcars. Norfolk Southern’s carload volume gains were double the gains in percentage terms reported by rival CSX in Week 25.
Additionally, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on June 27. Index (PMI) data, output in the Industrials sector is rising.
The AAR (Association of American Railroads) classifies all the commodities hauled by railroads into ten carload commodity groups. The intermodal volumes represented in containers and trailers are reported separately. All US Class I railroads (IYT) report carload data and intermodal traffic data separately. The change in commodity groups’ volumes will give you more insight into the railroads’ volume mix.
This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on June 21. Index (PMI) data, output in the Industrials sector is rising.
In this article I am going to calculate the intrinsic value of Genesee & Wyoming Inc (NYSE:GWR) by projecting its future cash flows and then discounting them to today’s value.Read More...
Genesee & Wyoming (GWR) is considering restructuring its UK/European operations. Genesee & Wyoming has a mean recommendation of 1.9, indicating a “buy.” A total of 14 analysts track GWR stock. Analysts polled by Thomson Reuters have set a mean target price of $83.14 on GWR stock, which moved upwards from $81.46 a month before.
Genesee & Wyoming’s (GWR) Australian shipments expanded marginally by 1.3% YoY (year-over-year) in May. The railroad moved ~51,300 carloads in that month compared to a little less than 50,600. In that region, carloads other than coal and coke accounted for 34% in May, which was almost equal with the share in May 2017. Coal and coke carloads were 66% of total carloads in GWR’s Australian operations in May. Carloads sans coal and coke went up 1% YoY in May to over 17,400 from ~17,300.
In May, Genesee & Wyoming’s (GWR) UK and European rail traffic slid 1.5% YoY (year-over-year). In April this year, the company’s European operations reported a volume rise. GWR moved ~90,800 railcars in the European region in May compared with ~92,200. However, on a quarter-to-May basis, the railroad’s UK/European carloads expanded 1.5% YoY to 176,700 units from slightly over 174,000.
North American operations form a sizable share of Genesee & Wyoming’s (GWR) overall revenues. The company earns between 60% and 65% of operating revenues from North American operations. In May 2018, the company’s North American same railroad volumes saw a double-digit jump by 13.6% YoY (year-over-year). The contribution of new railroads to total volumes in May was 725 carloads.
On June 13, Genesee & Wyoming (GWR) released its rail traffic data for May. The company operates in three regions: North America, UK/Europe, and Australia. In the reported month, the company’s combined volumes from same-railroad operations were ~292,400 carloads, up 6.3% YoY (year-over-year) from slightly over 275,200 units. On a reported basis, GWR’s rail traffic was up 6.6% in May. Genesee & Wyoming’s combined volumes on a quarter-to-May basis were up 4.9% YoY for same railroad operations.
The largest short line carrier in the US, Genesee & Wyoming (GWR), has operations in the US, Canada, UK/Europe, and parts of Australia. Though it doesn’t fall in that category, GWR has widely been compared with Class I railroads in the US.