NYSE:GATX

Stock Analysis Report

Executive Summary

GATX Corporation leases, operates, manages, and remarkets assets in the rail and marine markets worldwide.

Rewards

PE ratio (13.1x) is below the US market (18.4x)

Pays a high and reliable dividend of 2.49%

Risk Analysis

Earnings are forecast to decline by an average of -4% per year for the next 3 years

Interest payments are not well covered by earnings

Large one-off items impacting financial results



Snowflake Analysis

Established dividend payer and fair value.


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ECN Capital

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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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

GATX

2.3%

US Trade Distributors

0.9%

US Market


1 Year Return

-0.6%

GATX

9.6%

US Trade Distributors

20.0%

US Market

Return vs Industry: GATX underperformed the US Trade Distributors industry which returned 9.9% over the past year.

Return vs Market: GATX underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

GATXIndustryMarket
7 Day-1.0%2.3%0.9%
30 Day-0.2%-2.2%1.4%
90 Day-6.1%1.5%8.8%
1 Year1.8%-0.6%11.6%9.6%22.5%20.0%
3 Year39.7%29.6%20.4%14.8%49.9%40.3%
5 Year44.9%26.1%43.8%33.0%73.2%54.1%

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?

13.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GATX ($77.22) is trading above our estimate of fair value ($43.55)

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 (13.1x) compared to the Trade Distributors industry average (16.6x).

PE vs Market: GATX is good value based on its PE Ratio (13.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: GATX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GATX is good value based on its PB Ratio (1.5x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is GATX forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GATX's earnings are forecast to decline over the next 3 years (-4% per year).

Earnings vs Market: GATX's earnings are forecast to decline over the next 3 years (-4% per year).

High Growth Earnings: GATX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GATX's revenue (1.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GATX's revenue (1.2% 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 (11%).


Next Steps

Past Performance

How has GATX performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GATX has a large one-off gain of $62.1M impacting its December 31 2019 financial results.

Growing Profit Margin: GATX's current net profit margins (15.2%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: GATX's earnings have grown by 6.3% 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 (-0.05%) over the past year, making it difficult to compare to the Trade Distributors industry average (3.5%).


Return on Equity

High ROE: GATX's Return on Equity (11.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GATX's financial position?


Financial Position Analysis

Short Term Liabilities: GATX's short term assets ($322.2M) exceed its short term liabilities ($172.8M).

Long Term Liabilities: GATX's short term assets ($322.2M) do not cover its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: GATX's debt to equity ratio (261.4%) is considered high.

Reducing Debt: GATX's debt to equity ratio has reduced from 324.2% to 261.4% over the past 5 years.

Debt Coverage: GATX's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: GATX's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: GATX has a low level of unsold assets or inventory.

Debt Coverage by Assets: GATX's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

2.49%

Current Dividend Yield


Upcoming Dividend Payment

Purchase GATX before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: GATX's dividend (2.49%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: GATX's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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 (31.1%), 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 (34.6% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Brian Kenney (60yo)

14.8yrs

Tenure

US$5,792,282

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 ($USD5.79M) is about average for companies of similar size in the US market ($USD4.89M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Kenney
Chairman14.8yrsUS$5.79m0.54% $14.5m
Thomas Ellman
Executive VP & CFO1.5yrsUS$2.14m0.12% $3.2m
Deborah Golden
Executive VP14.1yrsUS$1.42m0.097% $2.6m
Robert Lyons
Executive VP & President of Rail North America1.5yrsUS$2.28m0.15% $3.9m
Paul Titterton
Senior VP & COO of Rail North America6.7yrsUS$1.43m0.028% $748.6k
Jennifer McManus
Senior VP0yrsno data0.0039% $106.2k
Niyi Adedoyin
Senior VP & Chief Information Officer4.1yrsno data0.015% $398.4k
Shari Hellerman
Director of Investor Relations0.3yrsno datano data
James Conniff
Executive VP & Chief Human Resources Officer5.2yrsno data0.014% $387.9k
William Hasek
Senior Vice President13.1yrsUS$330.52kno data

5.2yrs

Average Tenure

57.5yo

Average Age

Experienced Management: GATX's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Kenney
Chairman14.8yrsUS$5.79m0.54% $14.5m
James Ream
Lead Director3.1yrsUS$215.00k0.014% $386.2k
Ernst Häberli
Independent Director12.8yrsUS$195.00kno data
David Sutherland
Independent Director12.6yrsUS$210.00k0.028% $772.2k
Paul Yovovich
Independent Director7.6yrsUS$205.00k0.0057% $155.6k
Diane Aigotti
Independent Director3.3yrsUS$195.00kno data
Robert Ritchie
Independent Director8.6yrsUS$195.00k0.0057% $154.5k
Anne Arvia
Independent Director11.1yrsUS$212.50k0.00090% $24.4k
Stephen Wilson
Independent Director5.3yrsUS$195.00k0.011% $309.0k
Adam Stanley
Independent Director0.4yrsno datano data

8.1yrs

Average Tenure

65yo

Average Age

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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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$2.710b
  • Shares outstanding: 35.10m
  • Website: https://www.gatx.com

Number of Employees


Location

  • GATX Corporation
  • 233 South Wacker Drive
  • Chicago
  • Illinois
  • 60606
  • 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 in the rail and marine markets worldwide. The company operates through four segments: Rail North America, Rail International, Portfolio Management, and American Steamship Company (ASC). The Rail North America segment primarily leases railcars and locomotives. This segment also offers services, including the interior cleaning of railcars, the routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining operations, exterior blast and painting, and car stenciling. The Rail International segment leases railcars, as well as offers repair, regulatory compliance, and modernization works for railcars. The Portfolio Management segment is involved in leasing, marine, and asset remarketing operations, as well as manages portfolios of assets for third parties. The ASC segment operates a fleet of vessels that provide waterborne transportation of dry bulk commodities, such as iron ore, coal, limestone aggregates, and metallurgical limestone for the steel making, automobile manufacturing, electricity generation, and non-residential construction markets. As of December 31, 2018, it operated a fleet of 148,000 railcars; 644 four-axle and 36 six-axle locomotives; and 12 vessels. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:39
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.