GATX CORP (GATX) Stock Fundamental Analysis
USA - NYSE:GATX - US3614481030 - Common Stock
175.85 USD
+0.69 (+0.39%)
175.85 USD
0 (0%)
Taking everything into account, GATX scores 4 out of 10 in our fundamental rating. GATX was compared to 49 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. While showing a medium growth rate, GATX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year GATX was profitable.
GATX had a positive operating cash flow in the past year.
In the past 5 years GATX has always been profitable.
GATX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GATX has a Return On Assets (2.42%) which is comparable to the rest of the industry.
GATX has a Return On Equity (11.97%) which is in line with its industry peers.
GATX has a Return On Invested Capital of 3.18%. This is in the lower half of the industry: GATX underperforms 67.35% of its industry peers.
GATX had an Average Return On Invested Capital over the past 3 years of 2.98%. This is significantly below the industry average of 10.03%.
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
GATX's Profit Margin of 19.13% is amongst the best of the industry. GATX outperforms 87.76% of its industry peers.
GATX's Profit Margin has been stable in the last couple of years.
GATX's Operating Margin of 31.18% is amongst the best of the industry. GATX outperforms 87.76% of its industry peers.
GATX's Operating Margin has improved in the last couple of years.
GATX has a Gross Margin of 75.97%. This is amongst the best in the industry. GATX outperforms 95.92% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for GATX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that GATX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.99, GATX is doing worse than 75.51% of the companies in the same industry.
GATX has a Debt/Equity ratio of 3.22. This is a high value indicating a heavy dependency on external financing.
GATX has a worse Debt to Equity ratio (3.22) than 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.37
WACC8.71%
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.
With a Current ratio value of 1.28, GATX is not doing good in the industry: 75.51% of the companies in the same industry are doing better.
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 53.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.97% over the past year.
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
The Earnings Per Share is expected to grow by 9.43% on average over the next years. This is quite good.
GATX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.40% yearly.
EPS Next Y13.19%
EPS Next 2Y11.93%
EPS Next 3Y9.43%
EPS Next 5YN/A
Revenue Next Year9.36%
Revenue Next 2Y7.41%
Revenue Next 3Y6.4%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 20.28, which indicates a rather expensive current valuation of GATX.
Based on the Price/Earnings ratio, GATX is valued a bit cheaper than the industry average as 69.39% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GATX to the average of the S&P500 Index (27.86), we can say GATX is valued slightly cheaper.
GATX is valuated rather expensively with a Price/Forward Earnings ratio of 17.77.
GATX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GATX is cheaper than 61.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, GATX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 17.77 |
4.2 Price Multiples
GATX's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.85 |
4.3 Compensation for Growth
The 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)1.54
PEG (5Y)2.71
EPS Next 2Y11.93%
EPS Next 3Y9.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, GATX has a reasonable but not impressive dividend return.
GATX's Dividend Yield is a higher than the industry average which is at 1.77.
With a Dividend Yield of 1.39, GATX pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of GATX has a limited annual growth rate of 4.40%.
GATX has paid a dividend for at least 10 years, which is 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.
The dividend of GATX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.38%
EPS Next 2Y11.93%
EPS Next 3Y9.43%
175.85
+0.69 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners103.6%
Inst Owner Change-0.2%
Ins Owners0.89%
Ins Owner Change0.34%
Market Cap6.26B
Analysts82
Price Target192.53 (9.49%)
Short Float %3.4%
Short Ratio6.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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)2.21%
PT rev (3m)5.25%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)0.19%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 17.77 | ||
| P/S | 3.75 | ||
| P/FCF | N/A | ||
| P/OCF | 9.61 | ||
| P/B | 2.34 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 14.85 |
EPS(TTM)8.67
EY4.93%
EPS(NY)9.9
Fwd EY5.63%
FCF(TTM)-20.57
FCFYN/A
OCF(TTM)18.31
OCFY10.41%
SpS46.94
BVpS74.99
TBVpS71.44
PEG (NY)1.54
PEG (5Y)2.71
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 | 0.99 |
F-Score8
WACC8.71%
ROIC/WACC0.37
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 Y13.19%
EPS Next 2Y11.93%
EPS Next 3Y9.43%
EPS Next 5YN/A
Revenue 1Y (TTM)11.74%
Revenue growth 3Y8.03%
Revenue growth 5Y5.69%
Sales Q2Q%11.33%
Revenue Next Year9.36%
Revenue Next 2Y7.41%
Revenue Next 3Y6.4%
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%