GATX (GATX) AI Stock Analysis

• Market Cap: $5.48B
• Dividend Yield: 1.59%
• Average Volume (3M): 195.40K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.90
• Revenue Growth: 12.07%
• EPS Growth: 11.93%
• Country: US
• Employees: 2,150
• Sector: Industrials
• Sector Strength: 83
• Industry: Rental & Leasing Services
• EPS (TTM): 2.15
• Shares Outstanding: 35,700,000
• 10 Day Avg. Volume: 155,005
• 30 Day Avg. Volume: 195,403
• PEG Ratio: -2.11
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.21
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 12.85
• Enterprise Value/Ebitda: 2.75
• 1Y Price Target: $176.00
• Price Target Upside: 14.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $177.00 ▲(15.40%Upside)

GATX's overall score is driven by strong financial performance and strategic corporate actions, such as the railcar acquisition, which bolster future growth prospects. While technical indicators suggest caution due to potential overbought conditions, the company's robust earnings guidance and positive sentiment from the earnings call support a favorable outlook.

GATX Business Overview & Revenue Model

Company Description

GATX Corporation operates as railcar leasing company in the United States and internationally. The company operates through three segments: Rail North America, Rail International, and Portfolio Management. It leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. The company also offers services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining operations, exterior blast and painting, and car stenciling. In addition, it leases aircraft spare engines, directly-owned aircraft spare engines, and five liquefied gas-carrying vessels, as well as manages portfolios of assets for third parties. The company owns a fleet of approximately 147,000 railcars; 539 four-axle and 29 six-axle locomotives; and 5 vessels. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.

How the Company Makes Money

GATX Corporation generates revenue primarily through its railcar leasing services. The company's business model involves acquiring railcars and then leasing them to customers across various industries. These leases typically range from short to long-term contracts, providing a steady stream of rental income. In addition to leasing, GATX offers maintenance, repair, and other related services to ensure the operational efficiency and safety of its fleet, enhancing customer satisfaction and loyalty. The company also engages in railcar sales and investments in associated sectors, contributing to its overall earnings. Strategic partnerships and relationships with manufacturers and industry players further bolster GATX's market position and revenue potential.

GATX Financial Statement Overview

Summary

GATX exhibits strong revenue growth and profitability, supported by efficient operations. However, the high leverage on the balance sheet indicates potential financial risks, which could impact future flexibility. The cash flow statement emphasizes solid cash generation capabilities, though the inconsistency in free cash flow growth warrants attention.

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.

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.

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.

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
757.20M	401.60M	450.70M	452.20M	344.30M	292.20M
	Total Assets
12.97B	12.30B	11.33B	10.07B	9.54B	8.94B
	Total Debt
8.93B	8.41B	7.63B	6.71B	6.19B	5.73B
	Net Debt
8.17B	8.00B	7.18B	6.40B	5.85B	5.44B
	Total Liabilities
10.42B	9.86B	9.05B	8.04B	7.52B	6.98B
	Stockholders Equity
2.55B	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

• Technical Analysis Sentiment: Positive
• Last Price: 153.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 153.38 is above the 20-day moving average (MA) of 152.20, above the 50-day MA of 148.65, and above the 200-day MA of 149.62, indicating a bullish trend. The MACD of 1.45 indicates Positive momentum. The RSI at 53.16 is Neutral, neither overbought nor oversold. The STOCH value of 13.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GATX.

GATX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AL	81 Outperform	$6.30B	9.87	9.22%	1.56%	2.81%	15.38%
GATX	73 Outperform	$5.48B	19.43	11.64%	1.59%	12.07%	11.93%
R	72 Outperform	$6.26B	13.25	16.41%	2.14%	6.21%	47.05%
HRI	66 Neutral	$3.71B	24.90	9.60%	2.51%	8.34%	-63.02%
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%
WSC	59 Neutral	$4.73B	287.90	1.28%	1.08%	-0.77%	-94.12%

GATX Corporate Events

GATX Announces Acquisition of 105,000 Railcars

On May 29, 2025, GATX Corporation announced a definitive agreement to acquire approximately 105,000 railcars from Wells Fargo for $4.4 billion through a joint venture with Brookfield Infrastructure Partners. GATX will initially own 30% of the joint venture, with options to acquire up to 100% over time. The acquisition, expected to close in the first quarter of 2026, aims to enhance GATX’s fleet diversification and is anticipated to be modestly accretive to earnings per share in the first full year after closing. The transaction is subject to customary closing conditions and regulatory approvals.

The most recent analyst rating on (GATX) stock is a Hold with a $140.00 price target. To see the full list of analyst forecasts on GATX stock, see the GATX Stock Forecast page.

GATX Reports Strong Q1 2025 Financial Results

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.