| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 5/6 |
GATX Overview
GATX Corporation (NYSE: GATX) strives to be recognized as the finest railcar leasing company in the world by our customers, our shareholders, our employees and the communities where we operate.
GATX Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$90.35 |
| 52 Week High | US$62.15 |
| 52 Week Low | US$106.31 |
| Beta | 0.98 |
| 1 Month Change | -1.61% |
| 3 Month Change | 4.28% |
| 1 Year Change | 40.86% |
| 3 Year Change | 4.33% |
| 5 Year Change | 104.46% |
| Change since IPO | 413.54% |
Recent News & Updates
GATX (NYSE:GATX) Seems To Be Using A Lot Of Debt
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Avoid GATX Corporation
To say that GATX has hit a soft spot in its business would be an understatement. Both sales and earnings have dropped because the industry has been weak for years. In spite of that, the shares are trading near decade-high valuations. In my view, this won't end well. Just because the shares are not priced well doesn't mean we can't earn money. I've earned $9.35 in short put premia so far and will be adding to that today.
GATX (NYSE:GATX) Will Be Hoping To Turn Its Returns On Capital Around
To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...
Shareholder Returns
| GATX | US Trade Distributors | US Market | |
|---|---|---|---|
| 7D | 5.3% | 5.8% | 2.0% |
| 1Y | 40.9% | 52.6% | 32.8% |
Return vs Industry: GATX underperformed the US Trade Distributors industry which returned 55.5% over the past year.
Return vs Market: GATX exceeded the US Market which returned 35.3% over the past year.
Price Volatility
| GATX volatility | |
|---|---|
| GATX Beta | 0.98 |
| Industry Beta | 1.59 |
| Market Beta | 1 |
Stable Share Price: GATX is not significantly more volatile than the rest 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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1898 | 1,904 | Brian Kenney | https://www.gatx.com |
GATX Corporation (NYSE: GATX) strives to be recognized as the finest railcar leasing company in the world by our customers, our shareholders, our employees and the communities where we operate. As the leading global railcar lessor, GATX has been providing quality railcars and services to its customers for more than 122 years. GATX has been headquartered in Chicago, Illinois since its founding in 1898.
GATX Fundamentals Summary
| GATX fundamental statistics | |
|---|---|
| Market Cap | US$3.20b |
| Earnings (TTM) | US$108.00m |
| Revenue (TTM) | US$1.23b |
29.7x
P/E Ratio2.6x
P/S RatioIs GATX overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| GATX income statement (TTM) | |
|---|---|
| Revenue | US$1.23b |
| Cost of Revenue | US$365.40m |
| Gross Profit | US$866.80m |
| Expenses | US$758.80m |
| Earnings | US$108.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.04 |
| Gross Margin | 70.35% |
| Net Profit Margin | 8.76% |
| Debt/Equity Ratio | 295.3% |
How did GATX perform over the long term?
See historical performance and comparisonDividends
2.2%
Current Dividend Yield64%
Payout RatioValuation
Is GATX undervalued compared to its fair value and its price relative to the market?
29.67x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GATX ($90.35) is trading above our estimate of fair value ($28.53)
Significantly Below Fair Value: GATX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GATX is poor value based on its PE Ratio (29.7x) compared to the US Trade Distributors industry average (22x).
PE vs Market: GATX is poor value based on its PE Ratio (29.7x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: GATX is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: GATX is good value based on its PB Ratio (1.6x) compared to the US Trade Distributors industry average (2.4x).
Future Growth
How is GATX forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
28.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GATX's forecast earnings growth (28.6% per year) is above the savings rate (2%).
Earnings vs Market: GATX's earnings (28.6% per year) are forecast to grow faster than the US market (15% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GATX's revenue (6.4% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: GATX's revenue (6.4% 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 (9.8%).
Past Performance
How has GATX performed over the past 5 years?
-14.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GATX has a large one-off gain of $62.8M impacting its June 30 2021 financial results.
Growing Profit Margin: GATX's current net profit margins (8.8%) are lower than last year (13.6%).
Past Earnings Growth Analysis
Earnings Trend: GATX's earnings have declined by 14.9% 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 (-33.9%) over the past year, making it difficult to compare to the Trade Distributors industry average (48.9%).
Return on Equity
High ROE: GATX's Return on Equity (5.5%) is considered low.
Financial Health
How is GATX's financial position?
Financial Position Analysis
Short Term Liabilities: GATX's short term assets ($568.9M) exceed its short term liabilities ($245.8M).
Long Term Liabilities: GATX's short term assets ($568.9M) do not cover its long term liabilities ($7.2B).
Debt to Equity History and Analysis
Debt Level: GATX's debt to equity ratio (295.3%) is considered high.
Reducing Debt: GATX's debt to equity ratio has reduced from 330.6% to 295.3% over the past 5 years.
Debt Coverage: GATX's debt is not well covered by operating cash flow (7.5%).
Interest Coverage: GATX's interest payments on its debt are not well covered by EBIT (1.5x coverage).
Balance Sheet
Dividend
What is GATX current dividend yield, its reliability and sustainability?
2.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GATX's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: GATX's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (3.6%).
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 reasonable payout ratio (63.9%), GATX's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GATX's dividends in 3 years are forecast to be well covered by earnings (37.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Brian Kenney (62 yo)
16.42yrs
Tenure
US$7,286,765
Compensation
Mr. Brian A. Kenney has been the Chairman of the Board, President and Chief Executive Officer at GATX Corporation since October 12, 2005, October 2004 and April 22, 2005 respectively. Mr. Kenney served as...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD7.29M) is above average for companies of similar size in the US market ($USD5.28M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: GATX's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: GATX's board of directors are considered experienced (8 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 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$3.205b
- Shares outstanding: 35.47m
- Website: https://www.gatx.com
Number of Employees
Location
- GATX Corporation
- 233 S. Wacker Drive
- Chicago
- Illinois
- 60606-7147
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 22:55 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.