GATX CORP (GATX) Stock Fundamental Analysis
NYSE:GATX - New York Stock Exchange, Inc. - US3614481030 - Common Stock - Currency: USD
Taking everything into account, GATX scores 4 out of 10 in our fundamental rating. GATX was compared to 48 industry peers in the Trading Companies & Distributors industry. While GATX belongs to the best of the industry regarding profitability, there are concerns on its financial health. GATX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GATX had positive earnings in the past year.
GATX had a positive operating cash flow in the past year.
Each year in the past 5 years GATX has been profitable.
In the past 5 years GATX always reported a positive cash flow from operatings.
1.2 Ratios
GATX has a Return On Assets (2.22%) which is in line with its industry peers.
GATX's Return On Equity of 11.32% is in line compared to the rest of the industry. GATX outperforms 52.08% of its industry peers.
GATX has a Return On Invested Capital of 3.07%. This is in the lower half of the industry: GATX underperforms 70.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GATX is significantly below the industry average of 9.66%.
The 3 year average ROIC (2.98%) for GATX is below the current ROIC(3.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 11.32% | ||
| ROIC | 3.07% |
ROA(3y)2.05%
ROA(5y)1.87%
ROE(3y)10.25%
ROE(5y)9.11%
ROIC(3y)2.98%
ROIC(5y)2.87%
1.3 Margins
GATX has a better Profit Margin (17.73%) than 93.75% of its industry peers.
In the last couple of years the Profit Margin of GATX has remained more or less at the same level.
GATX has a Operating Margin of 30.35%. This is amongst the best in the industry. GATX outperforms 93.75% of its industry peers.
In the last couple of years the Operating Margin of GATX has grown nicely.
GATX has a Gross Margin of 75.81%. This is amongst the best in the industry. GATX outperforms 95.83% of its industry peers.
GATX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.35% | ||
| PM (TTM) | 17.73% | ||
| GM | 75.81% |
OM growth 3Y8.15%
OM growth 5Y5%
PM growth 3Y16.35%
PM growth 5Y0.4%
GM growth 3Y0.42%
GM growth 5Y0.99%
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.
Compared to 1 year ago, GATX has more shares outstanding
Compared to 5 years ago, GATX has more shares outstanding
The debt/assets ratio for GATX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.94, we must say that GATX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GATX (0.94) is worse than 83.33% of its industry peers.
A Debt/Equity ratio of 3.34 is on the high side and indicates that GATX has dependencies on debt financing.
GATX has a worse Debt to Equity ratio (3.34) than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.94 |
ROIC/WACC0.36
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.30 indicates that GATX should not have too much problems paying its short term obligations.
GATX's Current ratio of 1.30 is on the low side compared to the rest of the industry. GATX is outperformed by 79.17% of its industry peers.
GATX has a Quick Ratio of 1.30. This is a normal value and indicates that GATX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of GATX (1.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.18% over the past year.
The Earnings Per Share has been growing slightly by 7.47% on average over the past years.
The Revenue has grown by 12.07% in the past year. This is quite good.
GATX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.69% yearly.
EPS 1Y (TTM)16.18%
EPS 3Y15.18%
EPS 5Y7.47%
EPS Q2Q%6.97%
Revenue 1Y (TTM)12.07%
Revenue growth 3Y8.03%
Revenue growth 5Y5.69%
Sales Q2Q%10.98%
3.2 Future
The Earnings Per Share is expected to grow by 8.34% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y11.6%
EPS Next 2Y11.26%
EPS Next 3Y8.34%
EPS Next 5YN/A
Revenue Next Year9.05%
Revenue Next 2Y7.21%
Revenue Next 3Y5.74%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.39, GATX is valued on the expensive side.
Based on the Price/Earnings ratio, GATX is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GATX to the average of the S&P500 Index (26.91), we can say GATX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.94, GATX is valued correctly.
Based on the Price/Forward Earnings ratio, GATX is valued a bit cheaper than 60.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.46. GATX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 15.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GATX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.58 |
4.3 Compensation for Growth
GATX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GATX may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)2.6
EPS Next 2Y11.26%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, GATX has a reasonable but not impressive dividend return.
GATX's Dividend Yield is a higher than the industry average which is at 3.41.
Compared to the average S&P500 Dividend Yield of 2.43, GATX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of GATX has a limited annual growth rate of 4.40%.
GATX has been paying a dividend for at least 10 years, so it has a reliable track record.
GATX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.4%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
GATX pays out 29.91% of its income as dividend. This is a sustainable payout ratio.
GATX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.91%
EPS Next 2Y11.26%
EPS Next 3Y8.34%
155.91
+0.78 (+0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners102.04%
Inst Owner Change0.23%
Ins Owners0.87%
Ins Owner Change0.24%
Market Cap5.57B
Analysts77.78
Price Target182.92 (17.32%)
Short Float %3.05%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend2.39
Dividend Growth(5Y)4.4%
DP29.91%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.8%
Min EPS beat(2)1.01%
Max EPS beat(2)12.59%
EPS beat(4)3
Avg EPS beat(4)6.27%
Min EPS beat(4)-21.02%
Max EPS beat(4)32.49%
EPS beat(8)6
Avg EPS beat(8)5.42%
EPS beat(12)8
Avg EPS beat(12)4.73%
EPS beat(16)12
Avg EPS beat(16)12.33%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.9%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)1.48%
Revenue beat(8)2
Avg Revenue beat(8)-0.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)4
Avg Revenue beat(16)-1.24%
PT rev (1m)3.86%
PT rev (3m)0.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)0%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 15.94 | ||
| P/S | 3.42 | ||
| P/FCF | N/A | ||
| P/OCF | 8.85 | ||
| P/B | 2.18 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 14.58 |
EPS(TTM)8.04
EY5.16%
EPS(NY)9.78
Fwd EY6.27%
FCF(TTM)-27.41
FCFYN/A
OCF(TTM)17.61
OCFY11.3%
SpS45.58
BVpS71.41
TBVpS68.1
PEG (NY)1.67
PEG (5Y)2.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 11.32% | ||
| ROCE | 4.04% | ||
| ROIC | 3.07% | ||
| ROICexc | 3.27% | ||
| ROICexgc | 3.4% | ||
| OM | 30.35% | ||
| PM (TTM) | 17.73% | ||
| GM | 75.81% | ||
| FCFM | N/A |
ROA(3y)2.05%
ROA(5y)1.87%
ROE(3y)10.25%
ROE(5y)9.11%
ROIC(3y)2.98%
ROIC(5y)2.87%
ROICexc(3y)3.1%
ROICexc(5y)2.99%
ROICexgc(3y)3.2%
ROICexgc(5y)3.08%
ROCE(3y)3.9%
ROCE(5y)3.76%
ROICexcg growth 3Y7.35%
ROICexcg growth 5Y2.49%
ROICexc growth 3Y6.95%
ROICexc growth 5Y2.21%
OM growth 3Y8.15%
OM growth 5Y5%
PM growth 3Y16.35%
PM growth 5Y0.4%
GM growth 3Y0.42%
GM growth 5Y0.99%
F-Score8
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 9.22 | ||
| Cap/Depr | 374.27% | ||
| Cap/Sales | 98.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 0.94 |
F-Score8
WACC8.63%
ROIC/WACC0.36
Cap/Depr(3y)386.73%
Cap/Depr(5y)341.99%
Cap/Sales(3y)107.42%
Cap/Sales(5y)96.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.18%
EPS 3Y15.18%
EPS 5Y7.47%
EPS Q2Q%6.97%
EPS Next Y11.6%
EPS Next 2Y11.26%
EPS Next 3Y8.34%
EPS Next 5YN/A
Revenue 1Y (TTM)12.07%
Revenue growth 3Y8.03%
Revenue growth 5Y5.69%
Sales Q2Q%10.98%
Revenue Next Year9.05%
Revenue Next 2Y7.21%
Revenue Next 3Y5.74%
Revenue Next 5YN/A
EBIT growth 1Y20.7%
EBIT growth 3Y16.84%
EBIT growth 5Y10.97%
EBIT Next Year134.26%
EBIT Next 3Y32.69%
EBIT Next 5YN/A
FCF growth 1Y-31.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19%
OCF growth 3Y5.88%
OCF growth 5Y5.41%