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 has a great profitability rating, there are quite some concerns on its financial health. GATX has a decent growth rate and is not valued too expensively. Finally 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.
GATX had positive earnings in each of the past 5 years.
GATX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GATX has a Return On Assets (2.22%) which is comparable to the rest of the industry.
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.
With a Return On Invested Capital value of 3.07%, GATX is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for GATX is significantly below the industry average of 9.62%.
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
With an excellent Profit Margin value of 17.73%, GATX belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
GATX's Profit Margin has been stable in the last couple of years.
GATX's Operating Margin of 30.35% is amongst the best of 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GATX is destroying value.
GATX has more shares outstanding than it did 1 year ago.
GATX has more shares outstanding than it did 5 years ago.
GATX has a worse debt/assets ratio than last year.
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 85.42% of its industry peers.
GATX has a Debt/Equity ratio of 3.34. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.34, GATX is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.94 |
ROIC/WACC0.36
WACC8.61%
2.3 Liquidity
A Current Ratio of 1.30 indicates that GATX should not have too much problems paying its short term obligations.
The Current ratio of GATX (1.30) is worse than 81.25% 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.
GATX's Quick ratio of 1.30 is in line compared to the rest of the industry. GATX outperforms 52.08% of its industry peers.
| 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.
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.
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
Based on estimates for the next years, GATX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.34% on average per year.
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
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.
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 19.09, which indicates a rather expensive current valuation of GATX.
Compared to the rest of the industry, the Price/Earnings ratio of GATX indicates a somewhat cheap valuation: GATX is cheaper than 64.58% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.04, GATX is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.69 indicates a correct valuation of GATX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GATX indicates a somewhat cheap valuation: GATX is cheaper than 66.67% of the companies listed in the same industry.
GATX is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 15.69 |
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 | 14.49 |
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)1.65
PEG (5Y)2.55
EPS Next 2Y11.26%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, GATX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.53, GATX pays a better dividend. On top of this GATX pays more dividend than 83.33% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, GATX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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
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%
153.47
+1.19 (+0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners102.04%
Inst Owner Change-0.55%
Ins Owners0.87%
Ins Owner Change0.25%
Market Cap5.48B
Analysts77.78
Price Target183.94 (19.85%)
Short Float %3.09%
Short Ratio5.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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)0.56%
PT rev (3m)3.84%
EPS NQ rev (1m)3.43%
EPS NQ rev (3m)2.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 15.69 | ||
| P/S | 3.37 | ||
| P/FCF | N/A | ||
| P/OCF | 8.71 | ||
| P/B | 2.15 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 14.49 |
EPS(TTM)8.04
EY5.24%
EPS(NY)9.78
Fwd EY6.37%
FCF(TTM)-27.41
FCFYN/A
OCF(TTM)17.61
OCFY11.47%
SpS45.58
BVpS71.41
TBVpS68.1
PEG (NY)1.65
PEG (5Y)2.55
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
WACC8.61%
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%