GATX CORP (GATX) Stock Fundamental Analysis
USA - NYSE:GATX - US3614481030 - Common Stock
152.86 USD
+0.75 (+0.49%)
152.86 USD
0 (0%)
Taking everything into account, GATX scores 4 out of 10 in our fundamental rating. GATX was compared to 51 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 has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years GATX has been profitable.
Each year in the past 5 years GATX had a positive operating cash flow.
1.2 Ratios
GATX's Return On Assets of 2.42% is in line compared to the rest of the industry. GATX outperforms 43.14% of its industry peers.
With a Return On Equity value of 11.97%, GATX perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
With a Return On Invested Capital value of 3.18%, GATX is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
GATX had an Average Return On Invested Capital over the past 3 years of 2.98%. This is significantly below the industry average of 10.20%.
The 3 year average ROIC (2.98%) for GATX is below the current ROIC(3.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 11.97% | ||
| ROIC | 3.18% |
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's Profit Margin of 19.13% is amongst the best of the industry. GATX outperforms 88.24% 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's Operating Margin of 31.18% is amongst the best of the industry. GATX outperforms 94.12% of its industry peers.
In the last couple of years the Operating Margin of GATX has grown nicely.
GATX has a better Gross Margin (75.97%) than 96.08% 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 | 31.18% | ||
| PM (TTM) | 19.13% | ||
| GM | 75.97% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GATX is destroying value.
Compared to 1 year ago, GATX has more shares outstanding
The number of shares outstanding for GATX has been increased compared to 5 years ago.
Compared to 1 year ago, GATX has a worse debt to assets ratio.
2.2 Solvency
GATX has an Altman-Z score of 0.94. This is a bad value and indicates that GATX is not financially healthy and even has some risk of bankruptcy.
GATX has a worse Altman-Z score (0.94) than 68.63% of its industry peers.
A Debt/Equity ratio of 3.22 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 3.22, GATX is doing worse than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.94 |
ROIC/WACC0.38
WACC8.27%
2.3 Liquidity
GATX has a Current Ratio of 1.28. This is a normal value and indicates that GATX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.28, GATX is doing worse than 74.51% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that GATX should not have too much problems paying its short term obligations.
GATX's Quick ratio of 1.28 is in line compared to the rest of the industry. GATX outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
GATX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.64%, which is quite good.
The Earnings Per Share has been growing slightly by 7.47% on average over the past years.
The Revenue has grown by 10.66% in the past year. This is quite good.
Measured over the past years, GATX shows a small growth in Revenue. The Revenue has been growing by 5.69% on average per year.
EPS 1Y (TTM)9.64%
EPS 3Y15.18%
EPS 5Y7.47%
EPS Q2Q%-10%
Revenue 1Y (TTM)10.66%
Revenue growth 3Y8.03%
Revenue growth 5Y5.69%
Sales Q2Q%8.36%
3.2 Future
GATX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.10% yearly.
Based on estimates for the next years, GATX will show a small growth in Revenue. The Revenue will grow by 6.46% on average per year.
EPS Next Y13.19%
EPS Next 2Y12.09%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue Next Year9.42%
Revenue Next 2Y7.47%
Revenue Next 3Y6.46%
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 accelerating.
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
Based on the Price/Earnings ratio of 18.15, the valuation of GATX can be described as rather expensive.
72.55% of the companies in the same industry are more expensive than GATX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.13. GATX is valued slightly cheaper when compared to this.
GATX is valuated correctly with a Price/Forward Earnings ratio of 15.40.
Based on the Price/Forward Earnings ratio, GATX is valued a bit cheaper than the industry average as 68.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, GATX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 15.4 |
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 | 13.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GATX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.38
PEG (5Y)2.43
EPS Next 2Y12.09%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, GATX has a reasonable but not impressive dividend return.
GATX's Dividend Yield is a higher than the industry average which is at 1.97.
Compared to the average S&P500 Dividend Yield of 2.39, GATX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.4%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
GATX pays out 27.38% 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.
DP27.38%
EPS Next 2Y12.09%
EPS Next 3Y10.1%
152.86
+0.75 (+0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners103.6%
Inst Owner Change-0.01%
Ins Owners0.89%
Ins Owner Change0.15%
Market Cap5.44B
Revenue(TTM)1.70B
Net Income(TTM)319.60M
Analysts82
Price Target191 (24.95%)
Short Float %2.84%
Short Ratio5.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend2.39
Dividend Growth(5Y)4.4%
DP27.38%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.75%
Min EPS beat(2)0.48%
Max EPS beat(2)1.01%
EPS beat(4)4
Avg EPS beat(4)11.64%
Min EPS beat(4)0.48%
Max EPS beat(4)32.49%
EPS beat(8)6
Avg EPS beat(8)5.18%
EPS beat(12)9
Avg EPS beat(12)5.47%
EPS beat(16)12
Avg EPS beat(16)10.54%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-0.9%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)1.48%
Revenue beat(8)2
Avg Revenue beat(8)-0.33%
Revenue beat(12)3
Avg Revenue beat(12)-0.7%
Revenue beat(16)3
Avg Revenue beat(16)-1.35%
PT rev (1m)1.4%
PT rev (3m)3.84%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)0%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 15.4 | ||
| P/S | 3.26 | ||
| P/FCF | N/A | ||
| P/OCF | 8.35 | ||
| P/B | 2.04 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 13.97 |
EPS(TTM)8.42
EY5.51%
EPS(NY)9.93
Fwd EY6.49%
FCF(TTM)-20.57
FCFYN/A
OCF(TTM)18.31
OCFY11.98%
SpS46.94
BVpS74.99
TBVpS71.44
PEG (NY)1.38
PEG (5Y)2.43
Graham Number119.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 11.97% | ||
| ROCE | 4.19% | ||
| ROIC | 3.18% | ||
| ROICexc | 3.38% | ||
| ROICexgc | 3.51% | ||
| OM | 31.18% | ||
| PM (TTM) | 19.13% | ||
| GM | 75.97% | ||
| 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%
ROICexgc growth 3Y7.35%
ROICexgc 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 | 3.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.95 | ||
| Cap/Depr | 315.86% | ||
| Cap/Sales | 82.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 0.94 |
F-Score8
WACC8.27%
ROIC/WACC0.38
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)9.64%
EPS 3Y15.18%
EPS 5Y7.47%
EPS Q2Q%-10%
EPS Next Y13.19%
EPS Next 2Y12.09%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue 1Y (TTM)10.66%
Revenue growth 3Y8.03%
Revenue growth 5Y5.69%
Sales Q2Q%8.36%
Revenue Next Year9.42%
Revenue Next 2Y7.47%
Revenue Next 3Y6.46%
Revenue Next 5YN/A
EBIT growth 1Y22.59%
EBIT growth 3Y16.84%
EBIT growth 5Y10.97%
EBIT Next Year133.22%
EBIT Next 3Y32.14%
EBIT Next 5YN/A
FCF growth 1Y15.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.26%
OCF growth 3Y5.88%
OCF growth 5Y5.41%
GATX CORP / GATX FAQ
Can you provide the ChartMill fundamental rating for GATX CORP?
ChartMill assigns a fundamental rating of 4 / 10 to GATX.
Can you provide the valuation status for GATX CORP?
ChartMill assigns a valuation rating of 4 / 10 to GATX CORP (GATX). This can be considered as Fairly Valued.
How profitable is GATX CORP (GATX) stock?
GATX CORP (GATX) has a profitability rating of 7 / 10.
What is the valuation of GATX CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GATX CORP (GATX) is 18.15 and the Price/Book (PB) ratio is 2.04.
Can you provide the financial health for GATX stock?
The financial health rating of GATX CORP (GATX) is 1 / 10.