GATX CORP (GATX) Stock Fundamental Analysis
NYSE:GATX - New York Stock Exchange, Inc. - US3614481030 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GATX. GATX was compared to 48 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 not valued too expensively and it also shows a decent growth rate. GATX also has an excellent dividend rating.
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 of 2.42%. This is in the lower half of the industry: GATX underperforms 62.50% of its industry peers.
The Return On Equity of GATX (11.97%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.18%, GATX is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for GATX is significantly below the industry average of 9.78%.
The last Return On Invested Capital (3.18%) for GATX is above the 3 year average (2.98%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 19.13%, GATX belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of GATX has remained more or less at the same level.
The Operating Margin of GATX (31.18%) is better than 87.50% 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 95.83% of its industry peers.
GATX's Gross Margin has been stable in the last couple of years.
| 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
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.
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
GATX has an Altman-Z score of 0.95. This is a bad value and indicates that GATX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GATX (0.95) is worse than 79.17% 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.
GATX has a worse Debt to Equity ratio (3.22) than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.38
WACC8.42%
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.
The Current ratio of GATX (1.28) is worse than 81.25% of its industry peers.
A Quick Ratio of 1.28 indicates that GATX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.28, GATX perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
| 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 30.97%, 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 7.47% on average per year.
Looking at the last year, GATX shows a quite strong growth in Revenue. The Revenue has grown by 11.74% in the last year.
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)30.97%
EPS 3Y15.18%
EPS 5Y7.47%
EPS Q2Q%44.06%
Revenue 1Y (TTM)11.74%
Revenue growth 3Y8.03%
Revenue growth 5Y5.69%
Sales Q2Q%11.33%
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 8.34% yearly.
Based on estimates for the next years, GATX will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.47, which indicates a rather expensive current valuation of GATX.
68.75% of the companies in the same industry are more expensive than GATX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GATX to the average of the S&P500 Index (26.82), we can say GATX is valued slightly cheaper.
GATX is valuated correctly with a Price/Forward Earnings ratio of 16.38.
68.75% of the companies in the same industry are more expensive than GATX, based on the Price/Forward Earnings ratio.
GATX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 16.38 |
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 | 14.19 |
4.3 Compensation for Growth
GATX's 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)1.59
PEG (5Y)2.47
EPS Next 2Y11.26%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.55%, GATX has a reasonable but not impressive dividend return.
GATX's Dividend Yield is rather good when compared to the industry average which is at 1.75. GATX pays more dividend than 83.33% of the companies in the same industry.
GATX's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
27.38% 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.
DP27.38%
EPS Next 2Y11.26%
EPS Next 3Y8.34%
160.13
+2.02 (+1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners102.4%
Inst Owner Change-0.2%
Ins Owners0.88%
Ins Owner Change0.3%
Market Cap5.70B
Analysts77.78
Price Target184.96 (15.51%)
Short Float %3.16%
Short Ratio6.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)1.12%
PT rev (3m)5.02%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)0%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 16.38 | ||
| P/S | 3.41 | ||
| P/FCF | N/A | ||
| P/OCF | 8.75 | ||
| P/B | 2.14 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 14.19 |
EPS(TTM)8.67
EY5.41%
EPS(NY)9.78
Fwd EY6.11%
FCF(TTM)-20.57
FCFYN/A
OCF(TTM)18.31
OCFY11.43%
SpS46.94
BVpS74.99
TBVpS71.44
PEG (NY)1.59
PEG (5Y)2.47
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%
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 | 3.22 | ||
| 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 | 0.95 |
F-Score8
WACC8.42%
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)30.97%
EPS 3Y15.18%
EPS 5Y7.47%
EPS Q2Q%44.06%
EPS Next Y11.6%
EPS Next 2Y11.26%
EPS Next 3Y8.34%
EPS Next 5YN/A
Revenue 1Y (TTM)11.74%
Revenue growth 3Y8.03%
Revenue growth 5Y5.69%
Sales Q2Q%11.33%
Revenue Next Year9.05%
Revenue Next 2Y7.21%
Revenue Next 3Y5.74%
Revenue Next 5YN/A
EBIT growth 1Y22.59%
EBIT growth 3Y16.84%
EBIT growth 5Y10.97%
EBIT Next Year133.63%
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%