GWR

Genesee & Wyoming Inc

Industrial/Transportation


Presented:06/12/2013
Price:$88.55
Cap:$4.72B
Current Price:$111.88
Cap:$6.38B

Presented

Date06/12/2013
Price$88.55
Market Cap$4.72B
Ent Value$6.49B
P/E Ratio22.94x
Book Value$43.68
Div YieldN/A
Shares O/S53.25M
Ave Daily Vol470,000
Short Int3.28%

Current

Price$111.88
Market Cap$6.38B
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. The company’s railroads transport various commodities, including coal and coke; pulp and paper; metallic ores; metals commodities; minerals and stone commodities; lumber and forest products; farm and food products; chemicals and plastics; petroleum products; autos and auto parts; and municipal solid waste, construction and demolition debris, and haulage traffic. As of December 31, 2012, it owned or leased 111 freight railroads, of which 109 are short line railroads and 1 is a regional freight railroad with a total of approximately 13,300 miles of track in the United States, Australia, Canada, the Netherlands, and Belgium. The company also operated 1 longer-haul 1,400-mile railroad, which links the Port of Darwin to the Australian interstate rail network in South Australia; and approximately 3,270 additional miles of track that is owned or leased by others. It also provides industrial and port terminal switching, and contract coal loading services; car hire, rental, and repair services; demurrage and storage services; crewing and track access services; and railroad engineering, construction, maintenance, and repair services for short line and regional railroads, public-transit agencies, and industrial customers, as well as sells diesel fuel to other rail operators. The company was founded in 1899 and is headquartered in Darien, Connecticut.

Highlights

The presenter has owned shares of GWR for nearly a decade, and believes the combination of present dynamics at play in the market and two recent “transformative” acquisitions create a compelling risk/ reward profile at current levels (~$88). He outlined the bullish thesis on GWR as follows:

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Idea Discussion

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