GATX CORP (GATX) Stock Fundamental Analysis
NYSE:GATX - US3614481030 - Common Stock
171.38 USD
+2.93 (+1.74%)
171.38 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to GATX. GATX was compared to 50 industry peers in the Trading Companies & Distributors industry. GATX has a medium profitability rating, but doesn't score so well on its financial health evaluation. GATX is quite expensive at the moment. It does show a decent growth rate. GATX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year GATX was profitable.
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's Return On Assets of 2.42% is on the low side compared to the rest of the industry. GATX is outperformed by 60.00% of its industry peers.
With a Return On Equity value of 11.97%, GATX perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.18%, GATX is doing worse than 68.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GATX is significantly below the industry average of 9.98%.
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 88.00% of its industry peers.
GATX's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 31.18%, GATX belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GATX has grown nicely.
GATX has a better Gross Margin (75.97%) than 96.00% 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
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
GATX has an Altman-Z score of 0.97. 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 (0.97) is worse than 78.00% 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.
The Debt to Equity ratio of GATX (3.22) is worse than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.37
WACC8.53%
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: 78.00% of the companies in the same industry are doing better.
GATX has a Quick 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 Quick ratio of GATX (1.28) is comparable to the rest of the 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.
GATX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.47% yearly.
GATX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.74%.
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
Based on estimates for the next years, GATX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.43% on average per year.
GATX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.61% yearly.
EPS Next Y12.97%
EPS Next 2Y11.94%
EPS Next 3Y9.43%
EPS Next 5YN/A
Revenue Next Year9.05%
Revenue Next 2Y6.83%
Revenue Next 3Y5.61%
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
With a Price/Earnings ratio of 19.77, GATX is valued on the expensive side.
70.00% of the companies in the same industry are more expensive than GATX, based on the Price/Earnings ratio.
GATX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.44.
Based on the Price/Forward Earnings ratio of 17.31, the valuation of GATX can be described as rather expensive.
64.00% of the companies in the same industry are more expensive than GATX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GATX to the average of the S&P500 Index (22.87), we can say GATX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 17.31 |
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 | 14.58 |
4.3 Compensation for Growth
GATX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GATX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.52
PEG (5Y)2.65
EPS Next 2Y11.94%
EPS Next 3Y9.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, 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 1.69. GATX pays more dividend than 84.00% of the companies in the same industry.
With a Dividend Yield of 1.45, GATX pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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 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 2Y11.94%
EPS Next 3Y9.43%
171.38
+2.93 (+1.74%)
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 Change0.34%
Market Cap6.10B
Analysts80
Price Target188.36 (9.91%)
Short Float %3.05%
Short Ratio6.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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)1.84%
PT rev (3m)6.95%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)1.23%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 17.31 | ||
| P/S | 3.65 | ||
| P/FCF | N/A | ||
| P/OCF | 9.36 | ||
| P/B | 2.29 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 14.58 |
EPS(TTM)8.67
EY5.06%
EPS(NY)9.9
Fwd EY5.78%
FCF(TTM)-20.57
FCFYN/A
OCF(TTM)18.31
OCFY10.68%
SpS46.94
BVpS74.99
TBVpS71.44
PEG (NY)1.52
PEG (5Y)2.65
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 | 0.97 |
F-Score8
WACC8.53%
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 Y12.97%
EPS Next 2Y11.94%
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 Year9.05%
Revenue Next 2Y6.83%
Revenue Next 3Y5.61%
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%