NYSE:GATX

Stock Analysis Report

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Executive Summary

GATX Corporation leases, operates, manages, and remarkets assets primarily in the rail market worldwide. More Details


Snowflake Analysis

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has GATX's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GATX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GATX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

GATX

1.2%

US Trade Distributors

-0.4%

US Market


1 Year Return

38.0%

GATX

56.8%

US Trade Distributors

36.3%

US Market

Return vs Industry: GATX underperformed the US Trade Distributors industry which returned 47.8% over the past year.

Return vs Market: GATX exceeded the US Market which returned 31.2% over the past year.


Shareholder returns

GATXIndustryMarket
7 Day2.1%1.2%-0.4%
30 Day5.7%8.8%-1.3%
90 Day14.9%12.9%4.9%
1 Year41.7%38.0%60.3%56.8%39.2%36.3%
3 Year47.1%36.7%34.5%27.8%48.7%39.2%
5 Year134.0%105.0%118.4%99.6%117.0%92.8%

Long-Term Price Volatility Vs. Market

How volatile is GATX's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GATX undervalued compared to its fair value and its price relative to the market?

22.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GATX ($95.58) is trading above our estimate of fair value ($25.09)

Significantly Below Fair Value: GATX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GATX is good value based on its PE Ratio (22.3x) compared to the US Trade Distributors industry average (26.2x).

PE vs Market: GATX is poor value based on its PE Ratio (22.3x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: GATX is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: GATX is good value based on its PB Ratio (1.7x) compared to the US Trade Distributors industry average (2.1x).


Next Steps

Future Growth

How is GATX forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GATX's forecast earnings growth (9.4% per year) is above the savings rate (2%).

Earnings vs Market: GATX's earnings (9.4% per year) are forecast to grow slower than the US market (19.5% per year).

High Growth Earnings: GATX's earnings are forecast to grow, but not significantly.

Revenue vs Market: GATX's revenue (2.4% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: GATX's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GATX's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has GATX performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GATX has a large one-off gain of $39.0M impacting its December 31 2020 financial results.

Growing Profit Margin: GATX's current net profit margins (12.4%) are lower than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: GATX's earnings have declined by 5.8% per year over the past 5 years.

Accelerating Growth: GATX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GATX had negative earnings growth (-17.1%) over the past year, making it difficult to compare to the Trade Distributors industry average (-14.1%).


Return on Equity

High ROE: GATX's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is GATX's financial position?


Financial Position Analysis

Short Term Liabilities: GATX's short term assets ($529.2M) exceed its short term liabilities ($265.4M).

Long Term Liabilities: GATX's short term assets ($529.2M) do not cover its long term liabilities ($6.7B).


Debt to Equity History and Analysis

Debt Level: GATX's debt to equity ratio (273.5%) is considered high.

Reducing Debt: GATX's debt to equity ratio has reduced from 327.2% to 273.5% over the past 5 years.

Debt Coverage: GATX's debt is not well covered by operating cash flow (8%).

Interest Coverage: GATX's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Next Steps

Dividend

What is GATX current dividend yield, its reliability and sustainability?

2.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GATX's dividend (2.09%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: GATX's dividend (2.09%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: GATX's dividends per share have been stable in the past 10 years.

Growing Dividend: GATX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.7%), GATX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GATX's dividends in 3 years are forecast to be well covered by earnings (42.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Brian Kenney (61 yo)

15.92yrs

Tenure

US$7,663,128

Compensation

Mr. Brian A. Kenney has been the Chairman of the Board, President and Chief Executive Officer at GATX Corp. since October 12, 2005, October 2004 and April 22, 2005 respectively. Mr. Kenney served as the Ch...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD7.66M) is above average for companies of similar size in the US market ($USD4.96M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Kenney
Chairman15.92yrsUS$7.66m0.54%
$ 18.0m
Thomas Ellman
Executive VP & CFO2.58yrsUS$2.72m0.12%
$ 4.1m
Deborah Golden
Executive VP15.17yrsUS$1.96m0.099%
$ 3.3m
Robert Lyons
Executive VP & President of Rail North Americano dataUS$2.92m0.15%
$ 4.9m
Paul Titterton
Senior VP & COO of Rail North America7.75yrsUS$1.72m0.027%
$ 915.8k
Jennifer McManus
Senior VP1.17yrsno data0.0036%
$ 119.3k
Niyi Adedoyin
Senior VP & Chief Information Officer5.17yrsno data0.020%
$ 676.0k
Shari Hellerman
Director of Investor Relations1.33yrsno datano data
James Conniff
Executive VP & Chief Human Resources Officer6.25yrsno data0.0015%
$ 49.2k
William Hasek
Senior Vice President14.17yrsUS$330.52kno data
Robert Zmudka
Senior VP & Chief Commercial Officer of Rail North America2.58yrsno data0.017%
$ 554.4k
Jeffery Young
Senior VP & Chief Tax Officer6.17yrsno data0.018%
$ 600.3k

6.2yrs

Average Tenure

56yo

Average Age

Experienced Management: GATX's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Kenney
Chairman15.92yrsUS$7.66m0.54%
$ 18.0m
James Ream
Independent Lead Director4.17yrsUS$230.00k0.014%
$ 478.0k
Ernst Haberli
Independent Director13.92yrsUS$205.00kno data
David Sutherland
Independent Director13.67yrsUS$220.00k0.029%
$ 955.7k
Paul Yovovich
Independent Director8.67yrsUS$215.00k0.0061%
$ 203.7k
Diane Aigotti
Independent Director4.42yrsUS$205.00kno data
Anne Arvia
Independent Director12.17yrsUS$225.00k0.00090%
$ 30.1k
Stephen Wilson
Independent Director6.42yrsUS$205.00k0.011%
$ 382.2k
Adam Stanley
Independent Director1.5yrsUS$66.63kno data

8.7yrs

Average Tenure

64yo

Average Age

Experienced Board: GATX's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GATX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GATX Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GATX Corporation
  • Ticker: GATX
  • Exchange: NYSE
  • Founded: 1898
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$3.350b
  • Shares outstanding: 35.05m
  • Website: https://www.gatx.com

Number of Employees


Location

  • GATX Corporation
  • 233 South Wacker Drive
  • Chicago
  • Illinois
  • 60606-7147
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GATXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
GAXDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

GATX Corporation leases, operates, manages, and remarkets assets primarily in the rail market worldwide. The company operates through three segments: Rail North America, Rail International, and Portfolio M...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 23:58
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.