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GATX Corp (GATX)
NYSE:GATX
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GATX (GATX) AI Stock Analysis

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GATX

GATX

(NYSE:GATX)

Rating:72Outperform
Price Target:
$169.00
â–²(10.68%Upside)
GATX's strong earnings performance and strategic initiatives boost its outlook, while high leverage and mixed technical indicators present risks. The company is performing well overall but should address financial stability concerns.

GATX (GATX) vs. SPDR S&P 500 ETF (SPY)

GATX Business Overview & Revenue Model

Company DescriptionGATX Corporation (GATX) is a leading global leader in railcar leasing. The company specializes in leasing, operating, and managing long-lasting, widely used assets primarily in the rail sector. GATX's core business involves providing railcar leasing services to customers in diverse industries, including agriculture, chemical, energy, and transportation sectors. With a strong presence in North America and Europe, GATX is committed to delivering safe, reliable, and innovative leasing solutions.
How the Company Makes MoneyGATX 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 Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: 0.14%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance overall, with significant increases in net income, high fleet utilization, and positive lease pricing in North America. However, challenges in Europe and a lack of new investments in engine leasing were noted. The increased earnings guidance further supports a positive outlook.
Q2-2025 Updates
Positive Updates
Increase in Net Income
GATX reported a significant increase in net income for the 2025 second quarter, with $75.5 million or $2.06 per diluted share, compared to $44.4 million or $1.21 per diluted share in the same quarter of 2024.
High Fleet Utilization in North America
GATX Rail North America reported stable demand with a fleet utilization rate of 99.2% and a strong renewal success rate of 84.2%.
Positive Lease Price Index
The renewal rate change of GATX's lease price index was positive 24.2% for the quarter, with an average renewal term of 60 months.
Remarketing Success
GATX generated over $34 million in remarketing income during the quarter, bringing the year-to-date total to approximately $65 million.
Strong Demand in India
GATX Rail India reported high fleet utilization at 99.6%, supported by strong demand due to ongoing infrastructure investments.
Increased Full-Year Earnings Guidance
Reflecting year-to-date performance, GATX increased its 2025 full-year earnings guidance to a range of $8.50 to $8.90 per diluted share.
Negative Updates
Challenges in Europe
GATX Rail Europe is facing a challenging and uncertain business environment, with utilization at 93.3%, impacted by macro headwinds and slower GDP in Germany.
No Notable Investment in Engine Leasing
There has been no investment volume in the wholly owned portfolio through the first 6 months of the year, down from about $71 million in the same period last year.
Company Guidance
During the GATX 2025 Second Quarter Earnings Call, the company provided updated financial guidance, raising its full-year earnings expectation to a range of $8.50 to $8.90 per diluted share, excluding tax adjustments and items related to the pending Wells Fargo transaction. The quarter saw a net income of $75.5 million, or $2.06 per diluted share, compared to last year’s $44.4 million, or $1.21 per share. Year-to-date net income reached $154.1 million, or $4.21 per share, up from $118.7 million, or $3.25 per share, in the previous year. In North America, rail fleet utilization was at 99.2%, with a renewal success rate of 84.2% and a positive lease price index change of 24.2%. Meanwhile, GATX Rail Europe's utilization was 93.3%, and GATX Rail India reported a high utilization rate of 99.6%. Remarketing income for the quarter was over $34 million, contributing to a year-to-date total of $65 million. Additionally, strong global air passenger volume supported robust demand in the engine leasing segment.

GATX Financial Statement Overview

Summary
GATX demonstrates strong revenue growth and profitability, as evidenced by a 15.3% increase in revenue and a net profit margin of 17.7%. However, the high leverage with a debt-to-equity ratio of 3.50 poses potential risks, and inconsistent free cash flow growth is a concern.
Income Statement
78
Positive
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
65
Positive
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
72
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.59B1.41B1.27B1.26B1.21B
Gross Profit767.60M647.30M572.60M539.20M494.20M
EBITDA1.02B916.20M701.40M776.30M657.80M
Net Income284.20M259.20M122.30M143.10M88.00M
Balance Sheet
Total Assets12.30B11.33B10.07B9.54B8.94B
Cash, Cash Equivalents and Short-Term Investments401.60M450.70M452.20M344.30M292.20M
Total Debt8.41B7.63B6.71B6.19B5.73B
Total Liabilities9.86B9.05B8.04B7.52B6.98B
Stockholders Equity2.44B2.27B2.03B2.02B1.96B
Cash Flow
Free Cash Flow602.10M-1.14B-722.30M-622.90M-432.50M
Operating Cash Flow602.10M520.40M533.50M507.20M428.30M
Investing Cash Flow-1.42B-1.22B-1.07B-917.70M-664.00M
Financing Cash Flow770.50M844.10M504.40M463.10M377.40M

GATX Technical Analysis

Technical Analysis Sentiment
Negative
Last Price152.69
Price Trends
50DMA
153.99
Negative
100DMA
151.60
Positive
200DMA
152.87
Negative
Market Momentum
MACD
-0.36
Positive
RSI
45.08
Neutral
STOCH
25.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GATX, the sentiment is Negative. The current price of 152.69 is below the 20-day moving average (MA) of 155.60, below the 50-day MA of 153.99, and below the 200-day MA of 152.87, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 25.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$6.38B9.999.22%1.57%2.81%15.38%
74
Outperform
$7.25B15.1716.38%1.82%3.68%6.61%
72
Outperform
$5.50B17.6312.54%1.53%11.74%33.85%
66
Neutral
$4.10B143.281.41%2.34%11.41%-92.67%
65
Neutral
$10.84B16.295.52%2.09%3.14%-29.96%
61
Neutral
$5.69B346.061.28%0.48%-0.77%-94.12%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GATX
GATX
152.69
17.39
12.85%
AL
Air Lease
55.40
8.53
18.20%
WSC
WillScot Mobile Mini Holdings
29.35
-10.27
-25.92%
HRI
Herc Holdings
116.81
-24.87
-17.55%
R
Ryder System
177.71
42.25
31.19%

GATX Corporate Events

Business Operations and StrategyFinancial Disclosures
GATX Reports Strong Q2 2025 Financial Results
Positive
Jul 29, 2025

On July 29, 2025, GATX Corporation reported strong financial results for the second quarter of 2025, with a net income of $75.5 million, a significant increase from the previous year. The company raised its full-year earnings guidance and highlighted robust demand across its business segments, including Rail North America, Rail International, and Engine Leasing. The announcement reflects GATX’s solid operational performance and strategic investments, such as the joint venture with Brookfield Infrastructure to acquire Wells Fargo’s rail assets, positioning the company for future growth.

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.

Executive/Board ChangesBusiness Operations and Strategy
GATX Announces New Board Member Appointment
Positive
Jul 14, 2025

On July 13, 2025, GATX Corporation announced the election of Robert S. Wetherbee to its Board of Directors, expanding the board to nine members, with eight being independent. Mr. Wetherbee, who brings over 40 years of experience in the specialty materials and metals industries, will serve on the Audit and Compensation Committees. His extensive industry knowledge is expected to be an asset as GATX continues to execute its growth strategies in the railcar, aircraft spare engine, and tank container leasing sectors globally.

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.

Private Placements and FinancingBusiness Operations and Strategy
GATX Expands Credit Capacity with New Agreement
Positive
Jul 1, 2025

On June 30, 2025, GATX Corporation expanded its financial capacity by entering into a Commitment Increase Supplement with M&T Bank and other financial institutions, enhancing its existing Five Year Credit Agreement. This agreement increased the company’s revolving credit commitments from $600 million to $632 million, potentially strengthening GATX’s financial flexibility and operational capabilities in the leasing industry.

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.

M&A TransactionsBusiness Operations and Strategy
GATX Announces Acquisition of 105,000 Railcars
Positive
May 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 01, 2025