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GATX Corp (GATX)
NYSE:GATX
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GATX
(NYSE:GATX)
68Neutral
GATX (GATX) vs. S&P 500 (SPY)
Market Cap
$5.65B
Dividend Yield1.48%
Average Volume (3M)139.59K
Price to Earnings (P/E)20.4
Beta (1Y)1.09
Revenue Growth12.38%
EPS Growth7.93%
CountryUS
Employees2,150
SectorIndustrials
Sector Strength70
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)7.78
Shares Outstanding35,675,896
10 Day Avg. Volume157,867
30 Day Avg. Volume139,587
Financial Highlights & Ratios
PEG Ratio2.58
Price to Book (P/B)N/A
Price to Sales (P/S)3.48
Price to Cash Flow (P/CF)6.70
P/FCF Ratio3.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$158.00Price Target Upside-0.32% Downside
Rating ConsensusHold
Number of Analyst Covering1
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 has shown strong revenue growth and profitability improvements in 2024, but high leverage remains a concern. The lack of current cash flow data limits a complete assessment of liquidity. Overall, the company exhibits solid operational performance with potential financial risks.Income Statement
GATX showed strong revenue growth of 12.36% from 2023 to 2024, with a significant increase in EBIT, indicating improved operational efficiency. The net profit margin for 2024 is 17.93%, reflecting robust profitability. However, the absence of EBITDA data for 2024 limits complete margin analysis.75
Positive
Balance Sheet
The company's debt-to-equity ratio is 3.45, indicating high leverage, which poses potential financial risk. Return on equity improved to 11.66% in 2024, demonstrating better shareholder returns. The equity ratio of 19.83% suggests a moderate reliance on equity financing.68
Positive
Cash Flow
Cash flow data for 2024 is unavailable, preventing a comprehensive analysis. Historical data shows negative free cash flow trends, which could affect future liquidity. The operating cash flow to net income ratio was healthy in prior years, indicating good cash generation relative to profits.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.59B | 1.41B | 1.27B | 1.26B | 1.21B | Gross Profit |
| 1.59B | 647.30M | 572.60M | 539.20M | 494.20M | EBIT |
| 1.35B | 388.00M | -58.10M | -71.20M | -56.60M | EBITDA |
| 1.02B | 916.20M | 701.40M | 776.30M | 657.80M | Net Income Common Stockholders |
| 284.20M | 259.20M | 122.30M | 143.10M | 88.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 401.60M | 450.70M | 452.20M | 344.30M | 292.20M | Total Assets |
| 12.30B | 11.33B | 10.07B | 9.54B | 8.94B | Total Debt |
| 8.41B | 7.63B | 6.71B | 6.19B | 5.73B | Net Debt |
| 8.00B | 7.18B | 6.40B | 5.85B | 5.44B | Total Liabilities |
| 9.86B | 9.05B | 8.04B | 7.52B | 6.98B | Stockholders Equity |
| 2.44B | 2.27B | 2.03B | 2.02B | 1.96B |
| Cash Flow | Free Cash Flow | |||
| 602.10M | -1.14B | -722.30M | -622.90M | -432.50M | Operating Cash Flow |
| 602.10M | 520.40M | 533.50M | 507.20M | 428.30M | Investing Cash Flow |
| -1.42B | -1.22B | -1.07B | -917.70M | -664.00M | Financing Cash Flow |
| 770.50M | 844.10M | 504.40M | 463.10M | 377.40M |
GATX Technical Analysis
Positive
158.50
Price Trends
160.20
Negative
157.49
Positive
146.08
Positive
Market Momentum
-0.69
Negative
53.21
Neutral
88.97
Negative
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 158.5 is above the 20-day moving average (MA) of 156.62, below the 50-day MA of 160.20, and above the 200-day MA of 146.08, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 88.97 is Negative, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $142.66B | 21.27 | 42.60% | 2.23% | 0.54% | 6.06% | |
70 Neutral | $2.42B | 18.00 | 14.57% | 3.85% | 3.21% | 29.59% | |
69 Neutral | $32.39B | 31.38 | 10.26% | 0.45% | 7.34% | 32.91% | |
68 Neutral | $5.65B | 20.44 | 11.86% | 1.48% | 12.38% | 7.93% | |
66 Neutral | $1.69B | 9.30 | 13.71% | 2.23% | -9.47% | 69.11% | |
62 Neutral | $8.33B | 14.18 | 2.58% | 3.07% | 3.83% | -14.77% | |
47 Neutral | $117.41M | ― | 156.43% | ― | 55.84% | -159.47% |
* Industrials Sector Average
Performance Comparison
GATX
GATX
159.21
27.31
20.71%
RAIL
Freightcar America
5.96
2.11
54.81%
GBX
Greenbrier
53.00
2.00
3.92%
TRN
Trinity Industries
29.37
2.49
9.26%
UNP
Union Pacific
235.97
-4.55
-1.89%
WAB
Westinghouse Air Brake Technologies
186.92
41.93
28.92%
GATX Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: 2.98% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a predominantly positive outlook with strong net income growth, robust investment activities, and favorable market conditions for both rail and engine leasing. While there are some challenges, particularly in the European market and rising cost pressures, the positive elements largely outweigh these concerns.Highlights
Record Net Income Growth
GATX reported 2024 fourth quarter net income of $76.5 million or $2.10 per diluted share, compared to $66 million or $1.81 per diluted share in 2023. Full-year 2024 net income was $284.2 million or $7.78 per diluted share, up from $259.2 million or $7.12 per diluted share in 2023.
Robust Investment Volume
Full-year investment volume exceeded $1.6 billion for the second consecutive year, with RRPF, the engine leasing joint venture, investing over $900 million.
Remarketing Income Surpasses Expectations
Remarketing income at Rail North America exceeded expectations, reaching $120 million, driven by strong demand for GATX assets.
Positive Lease Renewal and Rate Environment
Renewal success rate in North America remained high in the mid-80% levels, with lease rate performance (LPI) at 26.7% in Q4.
Strong Engine Leasing Performance
Engine Leasing segment profit is expected to increase by $20 million to $30 million in 2025, with global air travel trends remaining favorable.
Lowlights
Challenges in European Economic Environment
Rail International faces challenges due to the economic environment in Germany, impacting customer growth.
Higher Maintenance and Interest Costs
Net maintenance expenses expected to increase by $10 million in 2025, alongside a $40 million rise in ownership costs due to higher interest rates and depreciation.
Reduced Investment Volume Expected
Rail North America's investment volume is expected to decrease to approximately $800 million in 2025, lower than 2024's record year.
Company Guidance
During the GATX Fourth Quarter Earnings Call for 2024, the company provided comprehensive guidance for 2025. GATX anticipates earnings per diluted share to range between $8.30 and $8.70, representing another record year of performance. The company expects Rail North America's segment profit to increase slightly, driven by an anticipated $75 million rise in lease revenue, despite a $10 million increase in net maintenance expenses and a $40 million rise in ownership costs due to higher interest rates and depreciation. Remarketing income is projected to remain robust, ranging from $100 million to $110 million. GATX plans to invest approximately $1.4 billion in 2025, with Rail North America accounting for about $800 million of that total. The company also expects Rail International's profit to increase by $5 million to $15 million and Engine Leasing profit to rise by $20 million to $30 million. Despite inflationary pressures, GATX aims to keep SG&A costs increase to a modest level of around $5 million.GATX Corporate Events
Business Operations and StrategyFinancial Disclosures
GATX Reports Strong 2024 Financial Results and Outlook
Positive
Jan 23, 2025
On January 23, 2025, GATX Corporation announced its financial results for the fourth quarter and the full year of 2024, revealing a net income of $76.5 million for the fourth quarter and $284.2 million for the full year. The company surpassed its original expectations due to strong demand in its Rail North America and Engine Leasing segments, maintaining high fleet utilization and achieving significant asset remarketing income. Additionally, GATX’s international operations in Europe and India sustained high fleet utilization rates. Looking forward to 2025, GATX anticipates continued growth in lease revenue and segment profit across its divisions, despite potential challenges in maintenance and interest expenses.
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.