GATX CORP (GATX) Stock Fundamental Analysis
NYSE:GATX - New York Stock Exchange, Inc. - US3614481030 - Common Stock - Currency: USD
Taking everything into account, GATX scores 4 out of 10 in our fundamental rating. GATX was compared to 48 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of GATX while its profitability can be described as average. GATX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GATX had positive earnings in the past year.
In the past year GATX had a positive cash flow from operations.
Each year in the past 5 years GATX has been profitable.
GATX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
GATX has a worse Return On Assets (2.21%) than 63.83% of its industry peers.
With a Return On Equity value of 11.23%, GATX is not doing good in the industry: 61.70% of the companies in the same industry are doing better.
The Return On Invested Capital of GATX (2.89%) is worse than 76.60% of its industry peers.
GATX had an Average Return On Invested Capital over the past 3 years of 2.93%. This is significantly below the industry average of 9.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 11.23% | ||
| ROIC | 2.89% |
ROA(3y)2.05%
ROA(5y)1.87%
ROE(3y)10.25%
ROE(5y)9.11%
ROIC(3y)2.93%
ROIC(5y)2.84%
1.3 Margins
With an excellent Profit Margin value of 17.76%, GATX belongs to the best of the industry, outperforming 91.49% of the companies in the same industry.
In the last couple of years the Profit Margin of GATX has remained more or less at the same level.
With an excellent Operating Margin value of 29.13%, GATX belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
In the last couple of years the Operating Margin of GATX has grown nicely.
The Gross Margin of GATX (75.61%) is better than 95.74% of its industry peers.
In the last couple of years the Gross Margin of GATX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.13% | ||
| PM (TTM) | 17.76% | ||
| GM | 75.61% |
OM growth 3Y8.15%
OM growth 5Y5%
PM growth 3Y16.35%
PM growth 5Y0.4%
GM growth 3Y0.42%
GM growth 5Y0.99%
2. Health
2.1 Basic Checks
GATX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GATX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GATX has been increased compared to 5 years ago.
The debt/assets ratio for GATX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.97, we must say that GATX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.97, GATX is not doing good in the industry: 87.23% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.36 is on the high side and indicates that GATX has dependencies on debt financing.
GATX's Debt to Equity ratio of 3.36 is on the low side compared to the rest of the industry. GATX is outperformed by 85.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.33
WACC8.86%
2.3 Liquidity
A Current Ratio of 1.38 indicates that GATX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, GATX is not doing good in the industry: 74.47% of the companies in the same industry are doing better.
A Quick Ratio of 1.38 indicates that GATX should not have too much problems paying its short term obligations.
GATX has a Quick ratio of 1.38. This is in the better half of the industry: GATX outperforms 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.11% over the past year.
Measured over the past 5 years, GATX shows a small growth in Earnings Per Share. The EPS has been growing by 7.47% on average per year.
The Revenue has grown by 12.38% in the past year. This is quite good.
GATX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.69% yearly.
EPS 1Y (TTM)11.11%
EPS 3Y15.18%
EPS 5Y7.47%
EPS Q2Q%12.64%
Revenue 1Y (TTM)12.38%
Revenue growth 3Y8.03%
Revenue growth 5Y5.69%
Sales Q2Q%12.15%
3.2 Future
Based on estimates for the next years, GATX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.26% on average per year.
The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y11.34%
EPS Next 2Y11.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.87%
Revenue Next 2Y6.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.79 indicates a rather expensive valuation of GATX.
GATX's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.28, GATX is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.67, which indicates a rather expensive current valuation of GATX.
The rest of the industry has a similar Price/Forward Earnings ratio as GATX.
GATX is valuated cheaply when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 18.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GATX is valued a bit more expensive than 65.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GATX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.83
PEG (5Y)2.78
EPS Next 2Y11.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GATX has a Yearly Dividend Yield of 1.40%.
GATX's Dividend Yield is a higher than the industry average which is at 1.83.
GATX's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
The dividend of GATX has a limited annual growth rate of 4.36%.
GATX has been paying a dividend for at least 10 years, so it has a reliable track record.
GATX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.36%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
GATX pays out 30.62% of its income as dividend. This is a sustainable payout ratio.
The dividend of GATX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.62%
EPS Next 2Y11.26%
EPS Next 3YN/A
GATX CORP
NYSE:GATX (1/29/2025, 8:04:00 PM)
After market: 164.26 0 (0%)164.26
-1.49 (-0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners102.12%
Inst Owner Change-0.08%
Ins Owners1.09%
Ins Owner Change-1.02%
Market Cap5.83B
Analysts77.78
Price Target182.58 (11.15%)
Short Float %3.59%
Short Ratio7.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend2.29
Dividend Growth(5Y)4.36%
DP30.62%
Div Incr Years14
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.73%
Min EPS beat(2)-21.02%
Max EPS beat(2)32.49%
EPS beat(4)3
Avg EPS beat(4)7.82%
Min EPS beat(4)-21.02%
Max EPS beat(4)32.49%
EPS beat(8)6
Avg EPS beat(8)7.63%
EPS beat(12)8
Avg EPS beat(12)12.74%
EPS beat(16)11
Avg EPS beat(16)9.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.64%
Max Revenue beat(2)1.48%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)1.48%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)3
Avg Revenue beat(12)-1.31%
Revenue beat(16)4
Avg Revenue beat(16)-1.24%
PT rev (1m)0%
PT rev (3m)14.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.18%
EPS NY rev (1m)0%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 18.67 | ||
| P/S | 3.78 | ||
| P/FCF | N/A | ||
| P/OCF | 11.29 | ||
| P/B | 2.39 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 15.79 |
EPS(TTM)7.9
EY4.81%
EPS(NY)8.8
Fwd EY5.35%
FCF(TTM)-34.82
FCFYN/A
OCF(TTM)14.55
OCFY8.86%
SpS43.4
BVpS68.64
TBVpS65.23
PEG (NY)1.83
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 11.23% | ||
| ROCE | 3.78% | ||
| ROIC | 2.89% | ||
| ROICexc | 3.02% | ||
| ROICexgc | 3.14% | ||
| OM | 29.13% | ||
| PM (TTM) | 17.76% | ||
| GM | 75.61% | ||
| FCFM | N/A |
ROA(3y)2.05%
ROA(5y)1.87%
ROE(3y)10.25%
ROE(5y)9.11%
ROIC(3y)2.93%
ROIC(5y)2.84%
ROICexc(3y)3.04%
ROICexc(5y)2.95%
ROICexgc(3y)3.13%
ROICexgc(5y)3.04%
ROCE(3y)3.83%
ROCE(5y)3.72%
ROICexcg growth 3Y5.27%
ROICexcg growth 5Y1.3%
ROICexc growth 3Y4.95%
ROICexc growth 5Y1.06%
OM growth 3Y8.15%
OM growth 5Y5%
PM growth 3Y16.35%
PM growth 5Y0.4%
GM growth 3Y0.42%
GM growth 5Y0.99%
F-Score8
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 9.49 | ||
| Cap/Depr | 423.23% | ||
| Cap/Sales | 113.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 0.97 |
F-Score8
WACC8.86%
ROIC/WACC0.33
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.11%
EPS 3Y15.18%
EPS 5Y7.47%
EPS Q2Q%12.64%
EPS Next Y11.34%
EPS Next 2Y11.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.38%
Revenue growth 3Y8.03%
Revenue growth 5Y5.69%
Sales Q2Q%12.15%
Revenue Next Year7.87%
Revenue Next 2Y6.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.17%
EBIT growth 3Y16.84%
EBIT growth 5Y10.97%
EBIT Next Year133.28%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-20.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.12%
OCF growth 3YN/A
OCF growth 5YN/A