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GATX

GATXNYSE:GATX Stock Report

Market Cap

US$3.3b

7D

-2.1%

1Y

34.6%

Updated

24 Oct, 2021

Data

Company Financials +
GATX fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends5/6

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

Fastenal

NasdaqGS:FAST

US$32.2b

United Rentals

NYSE:URI

US$26.7b

Herc Holdings

NYSE:HRI

US$5.6b

Applied Industrial Technologies

NYSE:AIT

US$3.9b

Price History & Performance

Summary of all time highs, changes and price drops for GATX
Historical stock prices
Current Share PriceUS$93.75
52 Week HighUS$65.00
52 Week LowUS$106.31
Beta0.97
1 Month Change6.21%
3 Month Change3.05%
1 Year Change34.60%
3 Year Change29.31%
5 Year Change114.29%
Change since IPO432.86%

Recent News & Updates

Sep 27
GATX (NYSE:GATX) Seems To Be Using A Lot Of Debt

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...

Sep 10

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.

Aug 17
GATX (NYSE:GATX) Will Be Hoping To Turn Its Returns On Capital Around

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

GATXUS Trade DistributorsUS Market
7D-2.1%2.3%1.7%
1Y34.6%53.4%30.3%

Return vs Industry: GATX underperformed the US Trade Distributors industry which returned 53.4% over the past year.

Return vs Market: GATX exceeded the US Market which returned 30.3% over the past year.

Price Volatility

Is GATX's price volatile compared to industry and market?
GATX volatility
GATX Beta0.97
Industry Beta1.58
Market Beta1

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

FoundedEmployeesCEOWebsite
18981,904Brian Kenneyhttps://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

How do GATX's earnings and revenue compare to its market cap?
GATX fundamental statistics
Market CapUS$3.33b
Earnings (TTM)US$99.90m
Revenue (TTM)US$1.24b

33.3x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GATX income statement (TTM)
RevenueUS$1.24b
Cost of RevenueUS$359.70m
Gross ProfitUS$881.60m
ExpensesUS$781.70m
EarningsUS$99.90m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.82
Gross Margin71.02%
Net Profit Margin8.05%
Debt/Equity Ratio306.1%

How did GATX perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

70%

Payout Ratio

Valuation

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

33.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GATX ($93.75) is trading above our estimate of fair value ($30.83)

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 (33.3x) compared to the US Trade Distributors industry average (22.6x).

PE vs Market: GATX is poor value based on its PE Ratio (33.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: GATX is poor value based on its PEG Ratio (1.3x)


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 (2.4x).


Future Growth

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

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GATX's forecast earnings growth (26.3% per year) is above the savings rate (2%).

Earnings vs Market: GATX's earnings (26.3% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GATX's revenue (6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: GATX's revenue (6% 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 (10.6%).


Past Performance

How has GATX performed over the past 5 years?

-19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GATX has a large one-off gain of $75.8M impacting its September 30 2021 financial results.

Growing Profit Margin: GATX's current net profit margins (8%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: GATX's earnings have declined by 19.2% 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 (-51.2%) over the past year, making it difficult to compare to the Trade Distributors industry average (52.8%).


Return on Equity

High ROE: GATX's Return on Equity (5.1%) is considered low.


Financial Health

How is GATX's financial position?


Financial Position Analysis

Short Term Liabilities: GATX's short term assets ($706.5M) exceed its short term liabilities ($184.8M).

Long Term Liabilities: GATX's short term assets ($706.5M) do not cover its long term liabilities ($7.4B).


Debt to Equity History and Analysis

Debt Level: GATX's debt to equity ratio (306.1%) is considered high.

Reducing Debt: GATX's debt to equity ratio has reduced from 307% to 306.1% over the past 5 years.

Debt Coverage: GATX's debt is not well covered by operating cash flow (7.2%).

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?

2.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GATX's dividend (2.13%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: GATX's dividend (2.13%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 (70.1%), 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 (36.8% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Brian Kenney (62 yo)

16.5yrs

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 ($USD7.29M) is above average for companies of similar size in the US market ($USD5.18M).

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 (3.4 years average tenure).


Board Members

Experienced Board: GATX's board of directors are considered experienced (8.1 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$3.325b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 22:12
End of Day Share Price2021/10/22 00:00
Earnings2021/09/30
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.