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GATX Corp (GATX)
NYSE:GATX
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GATX
(NYSE:GATX)
70Outperform
GATX (GATX) vs. S&P 500 (SPY)
Market Cap
$5.37B
Dividend Yield1.56%
Average Volume (3M)215.48K
Price to Earnings (P/E)19.1
Beta (1Y)0.86
Revenue Growth12.07%
EPS Growth11.93%
CountryUS
Employees2,150
SectorIndustrials
Sector Strength90
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)2.15
Shares Outstanding35,700,000
10 Day Avg. Volume166,204
30 Day Avg. Volume215,478
Financial Highlights & Ratios
PEG Ratio12.87
Price to Book (P/B)2.05
Price to Sales (P/S)0.00
P/FCF Ratio27.90
Enterprise Value/Market Cap2.49
Enterprise Value/Revenue2.14
Enterprise Value/Gross Profit16.92
Enterprise Value/Ebitda3.62
Forecast
1Y Price Target
$168.00Price Target Upside11.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
GATX Business Overview & Revenue Model
Company DescriptionGATX Corporation (GATX) is a global leader in railcar leasing, serving customers in various industries, including agriculture, chemicals, energy, and transportation. Established in 1898 and headquartered in Chicago, Illinois, GATX operates primarily in the railcar leasing sector, providing tailored leasing and maintenance solutions to meet the evolving needs of its clients. The company also engages in the leasing and management of tank containers and aircraft spare engines, thereby expanding its service offerings beyond railcars.
How the Company Makes MoneyGATX makes money primarily through the leasing of railcars, which forms the core of its revenue model. The company generates income by leasing a diverse fleet of railcars to customers across different industries, offering flexible lease terms tailored to their operational requirements. Additionally, GATX provides maintenance and repair services, ensuring the optimal performance and safety of its leased assets, which adds another layer to its revenue streams. The company also earns revenue from its portfolio of tank containers and aircraft spare engines, although these segments are smaller compared to railcar leasing. Strategic partnerships and long-term contracts with major industry players further enhance GATX's stability and profitability, allowing it to maintain a steady flow of income and capitalize on market opportunities.
GATX Financial Statement Overview
Summary
GATX demonstrates strong revenue growth and profitability, indicated by solid margins and efficient operations. However, the high leverage on the balance sheet presents potential financial risks. Cash flow performance is strong, though inconsistent free cash flow growth is a concern.Income Statement
GATX has demonstrated strong revenue growth with a 15.3% increase from 2023 to TTM (Trailing-Twelve-Months) and a consistent rise over the years. The gross profit margin stands at 48.6% for TTM, indicating solid profitability, while the net profit margin is 17.7%, showcasing efficient cost management. The EBIT and EBITDA margins at 30.3% and 61.5% respectively for TTM, further highlight robust operating performance. Overall, the income statement indicates strong growth and profitability, with some room for improvement in cost efficiency.78
Positive
Balance Sheet
The debt-to-equity ratio at 3.50 suggests a high level of leverage, which poses potential risks in a volatile market. ROE of 11.3% indicates a reasonable return on equity. An equity ratio of 19.7% shows a moderate reliance on equity for financing. While the balance sheet reflects a stable asset base, the high leverage could be a concern in terms of financial stability.65
Positive
Cash Flow
The operating cash flow to net income ratio is 2.18, suggesting strong cash generation relative to earnings. However, the free cash flow growth rate has been inconsistent, showing a decrease in the latest period. The free cash flow to net income ratio of 0.65 reflects a decent conversion of income to free cash. Overall, cash flow is strong, but the volatility in free cash flow growth is a point of concern.72
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.63B | 1.59B | 1.41B | 1.27B | 1.26B | 1.21B | Gross Profit |
| 791.00M | 767.60M | 647.30M | 572.60M | 539.20M | 494.20M | EBIT |
| 493.90M | 473.60M | 388.00M | -58.10M | -71.20M | -56.60M | EBITDA |
| 1.00B | 1.05B | 916.20M | 701.40M | 776.30M | 657.80M | Net Income Common Stockholders |
| 288.50M | 284.20M | 259.20M | 122.30M | 143.10M | 88.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 479.20M | 401.60M | 450.70M | 452.20M | 344.30M | 292.20M | Total Assets |
| 11.58B | 12.30B | 11.33B | 10.07B | 9.54B | 8.94B | Total Debt |
| 7.85B | 8.41B | 7.63B | 6.71B | 6.19B | 5.73B | Net Debt |
| 7.37B | 8.00B | 7.18B | 6.40B | 5.85B | 5.44B | Total Liabilities |
| 9.25B | 9.86B | 9.05B | 8.04B | 7.52B | 6.98B | Stockholders Equity |
| 2.32B | 2.44B | 2.27B | 2.03B | 2.02B | 1.96B |
| Cash Flow | Free Cash Flow | ||||
| 186.70M | 602.10M | -1.14B | -722.30M | -622.90M | -432.50M | Operating Cash Flow |
| 628.70M | 602.10M | 520.40M | 533.50M | 507.20M | 428.30M | Investing Cash Flow |
| -1.34B | -1.42B | -1.22B | -1.07B | -917.70M | -664.00M | Financing Cash Flow |
| 987.10M | 770.50M | 844.10M | 504.40M | 463.10M | 377.40M |
GATX Technical Analysis
Positive
150.40
Price Trends
149.91
Positive
154.78
Negative
148.40
Positive
Market Momentum
-0.09
Negative
55.50
Neutral
75.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GATX, the sentiment is Positive. The current price of 150.4 is above the 20-day moving average (MA) of 146.57, above the 50-day MA of 149.91, and above the 200-day MA of 148.40, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 75.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GATX.
GATX Risk Analysis
GATX disclosed 32 risk factors in its most recent earnings report. GATX reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GATX Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.42B | 10.06 | 9.22% | 1.50% | 2.81% | 15.38% | |
70 Outperform | $5.37B | 19.05 | 11.64% | 1.56% | 12.07% | 11.93% | |
69 Neutral | $6.55B | 13.85 | 16.41% | 1.98% | 6.21% | 47.05% | |
68 Neutral | $3.91B | 30.61 | 9.60% | 1.96% | 8.34% | -63.02% | |
67 Neutral | $5.46B | 332.30 | 1.28% | 0.23% | -0.77% | -94.12% | |
64 Neutral | $4.42B | 11.99 | 5.16% | 249.23% | 4.02% | -11.68% | |
56 Neutral | $3.53B | 38.66 | 15.74% | 1.14% | -3.52% | -46.60% |
* Industrials Sector Average
Performance Comparison
GATX
GATX
150.40
13.54
9.89%
AL
Air Lease
57.45
9.41
19.59%
WSC
WillScot Mobile Mini Holdings
29.94
-11.51
-27.77%
HEES
H&E Equipment Services
96.29
48.65
102.12%
HRI
Herc Holdings
137.29
-14.92
-9.80%
R
Ryder System
158.32
33.87
27.22%
GATX Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 1.29%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong financial performance with high fleet utilization and successful asset remarketing. However, there were concerns about increased maintenance expenses, challenges in the European market, and macroeconomic uncertainties. Despite these challenges, the company's overall performance and strategic positioning in various segments remain robust.Q1-2025 Updates
Positive Updates
Strong Financial Performance
GATX Corporation reported a first-quarter net income of $78.6 million or $2.15 per diluted share, compared to $74.3 million or $2.03 per diluted share in the previous year, indicating a steady financial performance.
High Fleet Utilization and Renewal Success
GATX Rail North America's fleet utilization remained high at 99.2%, with a strong renewal success rate of 85.1% and a lease price index renewal rate change of 24.5%.
Successful Asset Remarketing
The company generated over $30 million in asset remarketing income in the quarter, capitalizing on a robust secondary market.
Robust Engine Leasing Segment
The engine leasing segment performed well, with strong demand for aircraft spare engines, reflecting robust global demand.
Stable Rail International Performance
Fleet utilization remained high in Europe and India, with GATX Rail India's utilization at 99.6%, and successful lease rate increases in Rail International's assets.
Negative Updates
Increased Maintenance Expenses
First quarter net maintenance expense was higher than the previous year, driven by higher tank compliance activity.
Challenges in European Rail Market
The European railcar leasing market faces challenges due to economic uncertainty, with significant challenges in the intermodal market impacting utilization.
Macroeconomic and Tariff Uncertainty
Concerns were raised about the potential impact of tariffs and global economic volatility, particularly in Europe, which could affect long-term growth plans.
Slight Decline in Sequential Lease Rates
Sequential lease rates were down slightly from the previous quarter, though this was anticipated by the company.
Company Guidance
During GATX Corporation's 2025 first quarter earnings call, the company provided guidance indicating strong performance across its divisions. The first quarter net income was reported at $78.6 million, or $2.15 per diluted share, an increase from the previous year's $74.3 million, or $2.03 per diluted share. The company's fleet utilization in North America remained high at 99.2%, with a renewal success rate of 85.1%. The lease rate index saw a 24.5% renewal rate change, with an average renewal term of 61 months. GATX invested over $227 million in North America and $62 million internationally during the quarter, reflecting ongoing fleet expansion. The secondary market was robust, generating over $30 million in asset remarketing income. Despite higher maintenance expenses due to tank compliance activity, the company maintained its full-year earnings guidance of $8.30 to $8.70 per diluted share, confident in its resilience amidst economic uncertainties and market volatilities.GATX Corporate Events
Financial Disclosures
GATX Reports Strong Q1 2025 Financial Results
Positive
Apr 23, 2025
On April 23, 2025, GATX Corporation reported its first-quarter financial results for 2025, revealing a net income of $78.6 million, or $2.15 per diluted share, up from $74.3 million, or $2.03 per diluted share, in the same quarter of 2024. The company highlighted strong demand for its assets, with Rail North America achieving a fleet utilization of 99.2% and generating over $30 million in remarketing income. GATX’s investment volume reached approximately $300 million, reflecting attractive opportunities across its business segments. Despite macroeconomic volatility, GATX remains confident in its full-year earnings outlook, projecting earnings of $8.30–$8.70 per diluted share.
Spark’s Take on GATX Stock
According to Spark, TipRanks’ AI Analyst, GATX is a Neutral.
GATX’s overall stock score reflects strong financial performance with notable revenue and profitability growth. However, high leverage and lack of updated cash flow data pose risks. Despite positive earnings call sentiment and fair valuation, technical indicators suggest potential short-term weakness.
To see Spark’s full report on GATX stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.