GATX CORP (GATX)
US3614481030 - Common Stock
GATX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 52 industry peers in the Trading Companies & Distributors industry. While GATX is still in line with the averages on profitability rating, there are concerns on its financial health. GATX is quite expensive at the moment. It does show a decent growth rate. GATX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year GATX was profitable.
In the past year GATX had a positive cash flow from operations.
In the past 5 years GATX has always been profitable.
Each year in the past 5 years GATX had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.29%, GATX is not doing good in the industry: 67.31% of the companies in the same industry are doing better.
GATX has a Return On Equity (11.40%) which is in line with its industry peers.
The Return On Invested Capital of GATX (2.73%) is worse than 80.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GATX is significantly below the industry average of 11.76%.
The 3 year average ROIC (2.64%) for GATX is below the current ROIC(2.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 11.4% | ||
| ROIC | 2.73% |
ROA(3y)1.78%
ROA(5y)1.92%
ROE(3y)8.72%
ROE(5y)9.08%
ROIC(3y)2.64%
ROIC(5y)2.67%
1.3 Margins
Looking at the Profit Margin, with a value of 18.37%, GATX belongs to the top of the industry, outperforming 94.23% of the companies in the same industry.
GATX's Profit Margin has been stable in the last couple of years.
GATX has a better Operating Margin (27.50%) than 84.62% of its industry peers.
In the last couple of years the Operating Margin of GATX has grown nicely.
GATX's Gross Margin of 75.10% is amongst the best of the industry. GATX outperforms 96.15% 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 | 27.5% | ||
| PM (TTM) | 18.37% | ||
| GM | 75.1% |
OM growth 3Y5.04%
OM growth 5Y2.72%
PM growth 3Y13.66%
PM growth 5Y0.43%
GM growth 3Y1.28%
GM growth 5Y0.54%
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 reduced 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 0.87, we must say that GATX is in the distress zone and has some risk of bankruptcy.
GATX has a worse Altman-Z score (0.87) than 82.69% of its industry peers.
A Debt/Equity ratio of 3.02 is on the high side and indicates that GATX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.02, GATX is doing worse than 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.87 |
ROIC/WACC0.37
WACC7.36%
2.3 Liquidity
A Current Ratio of 0.67 indicates that GATX may have some problems paying its short term obligations.
GATX has a Current ratio of 0.67. This is amonst the worse of the industry: GATX underperforms 94.23% of its industry peers.
A Quick Ratio of 0.67 indicates that GATX may have some problems paying its short term obligations.
GATX has a Quick ratio of 0.67. This is amonst the worse of the industry: GATX underperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
GATX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.96%, which is quite impressive.
Measured over the past 5 years, GATX shows a small growth in Earnings Per Share. The EPS has been growing by 6.46% on average per year.
GATX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.83%.
GATX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.73% yearly.
EPS 1Y (TTM)21.96%
EPS 3Y15.96%
EPS 5Y6.46%
EPS growth Q2Q12.99%
Revenue 1Y (TTM)10.83%
Revenue growth 3Y5.28%
Revenue growth 5Y3.73%
Revenue growth Q2Q14.25%
3.2 Future
Based on estimates for the next years, GATX will show a small growth in Earnings Per Share. The EPS will grow by 6.64% on average per year.
GATX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.39% yearly.
EPS Next Y8.42%
EPS Next 2Y6.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.82%
Revenue Next 2Y7.39%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.21, GATX is valued on the expensive side.
GATX's Price/Earnings ratio is in line with the industry average.
GATX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.02.
GATX is valuated correctly with a Price/Forward Earnings ratio of 15.87.
GATX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.32. GATX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 15.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GATX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of GATX may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)2.67
EPS Next 2Y6.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GATX has a Yearly Dividend Yield of 1.82%.
Compared to an average industry Dividend Yield of 1.74, GATX pays a better dividend. On top of this GATX pays more dividend than 84.62% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, GATX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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 Years13
Div Non Decr Years19
5.3 Sustainability
31.10% of the earnings are spent on dividend by GATX. This is a low number and sustainable payout ratio.
GATX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.1%
EPS Next 2Y6.64%
EPS Next 3YN/A
GATX CORP
NYSE:GATX (4/30/2024, 4:05:00 PM)
After market: 122.36 0 (0%)122.36
-3.53 (-2.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 15.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.04
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 11.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.5% | ||
| PM (TTM) | 18.37% | ||
| GM | 75.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)21.96%
EPS 3Y15.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.83%
Revenue growth 3Y5.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y