GATX (GATX) AI Stock Analysis

• Market Cap: $5.88B
• Dividend Yield: 1.44%
• Average Volume (3M): 171.04K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.77
• Revenue Growth: 10.66%
• EPS Growth: 13.61%
• Country: US
• Employees: 2,150
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 2.10
• Shares Outstanding: 35,700,000
• 10 Day Avg. Volume: 145,248
• 30 Day Avg. Volume: 171,042
• PEG Ratio: 2.08
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 3.50
• P/FCF Ratio: -5.17
• Enterprise Value/Market Cap: 2.49
• Enterprise Value/Revenue: 8.58
• Enterprise Value/Gross Profit: 17.57
• Enterprise Value/Ebitda: 13.36
• 1Y Price Target: $192.00
• Price Target Upside: 16.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 8.77
• Revenue Forecast (FY): $1.73B

• Rating: 73 Outperform
• Price Target: $178.00 ▲(8.02% Upside)

GATX's overall score reflects strong financial performance and positive earnings call highlights, tempered by technical indicators showing neutral momentum and valuation metrics that are reasonable but not exceptional. The high debt-to-equity ratio remains a concern, but the company's robust cash flow and profitability provide a solid foundation.

Positive Factors

High Fleet Utilization

High fleet utilization indicates strong demand for GATX's railcars, ensuring stable lease income and reinforcing its market position in North America.

Remarketing Income Growth

Strong remarketing income growth enhances GATX's revenue streams, demonstrating effective asset management and adaptability in secondary markets.

Strong Performance in India

Robust operations in India with full fleet utilization highlight GATX's successful international expansion and potential for future growth in emerging markets.

Negative Factors

High Debt-to-Equity Ratio

Significant leverage poses financial risk, potentially limiting GATX's ability to invest in growth opportunities or weather economic downturns.

Decreased Quarterly Net Income

A decline in quarterly net income could indicate challenges in maintaining profitability, affecting investor confidence and future earnings potential.

Increased Maintenance Expenses

Rising maintenance costs can pressure margins, reducing profitability and necessitating efficiency improvements to maintain financial performance.

GATX Business Overview & Revenue Model

Company Description

GATX Corporation is a global leader in railcar leasing, providing a comprehensive range of rail-related services and solutions. The company operates primarily in the rail transportation sector, focusing on the leasing of freight railcars and the management of railcar fleets. GATX serves various industries, including energy, chemicals, and agriculture, with a core offering that includes tank cars, freight cars, and specialized railcars designed to meet specific customer needs. The company also engages in the maintenance and repair of railcars, ensuring their operational efficiency and safety.

How the Company Makes Money

GATX generates revenue primarily through the leasing of its railcar fleet to customers on long-term contracts. The company earns lease income from these contracts, which provide a stable and recurring revenue stream. Additionally, GATX benefits from ancillary services such as railcar maintenance and repair, which contribute to its overall earnings. Key revenue streams include lease payments from customers, fees for maintenance services, and the sale of railcars from its fleet. GATX has established significant partnerships with major railroads and industrial companies, enhancing its market position and allowing for diversified revenue generation across various sectors.

GATX Financial Statement Overview

Summary

GATX demonstrates strong profitability and revenue growth, supported by efficient operations. However, high leverage and declining free cash flow present potential risks. The company needs to manage its debt levels carefully and improve free cash flow generation to maintain financial stability.

Income Statement

GATX shows strong profitability with a consistent increase in gross profit margin and net profit margin over the years. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 49.10% and a net profit margin of 19.13%, both of which are healthy figures. Revenue growth has been steady, with a 2.69% increase in the latest TTM period, indicating a positive trajectory. The EBIT and EBITDA margins are also robust, reflecting efficient operations and cost management.

Balance Sheet

The company has a high debt-to-equity ratio of 3.38 in the TTM period, suggesting significant leverage, which could pose risks if not managed properly. However, the return on equity (ROE) is strong at 12.66%, indicating effective use of equity to generate profits. The equity ratio is relatively stable, showing a balanced asset structure.

Cash Flow

GATX's cash flow performance is mixed. The operating cash flow to net income ratio is healthy at 1.06, indicating good cash generation relative to net income. However, the free cash flow has seen a significant decline, with a negative growth rate of -146.32% in the TTM period, which is a concern. The free cash flow to net income ratio is low at 0.23, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70B	1.59B	1.41B	1.27B	1.26B	1.21B
Gross Profit	832.50M	760.90M	647.30M	572.60M	539.20M	494.20M
EBITDA	1.09B	1.02B	901.00M	762.40M	776.30M	657.80M
Net Income	312.80M	284.20M	259.20M	155.90M	143.10M	151.30M
Balance Sheet
Total Assets	13.31B	12.30B	11.33B	10.07B	9.54B	8.94B
Cash, Cash Equivalents and Short-Term Investments	696.10M	401.60M	450.70M	452.20M	344.30M	292.20M
Total Debt	9.03B	8.41B	7.63B	6.72B	6.19B	5.73B
Total Liabilities	10.59B	9.86B	9.05B	8.04B	7.52B	6.98B
Stockholders Equity	2.72B	2.44B	2.27B	2.03B	2.02B	1.96B
Cash Flow
Free Cash Flow	709.80M	-1.07B	-1.14B	-722.30M	-622.90M	-432.50M
Operating Cash Flow	709.80M	602.10M	520.40M	533.50M	507.20M	428.30M
Investing Cash Flow	-937.70M	-1.42B	-1.22B	-1.07B	-917.70M	-664.00M
Financing Cash Flow	417.60M	770.50M	844.10M	504.40M	463.10M	377.40M

GATX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 164.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 164.78 is above the 20-day moving average (MA) of 158.11, above the 50-day MA of 163.50, and above the 200-day MA of 157.11, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 66.08 is Neutral, neither overbought nor oversold. The STOCH value of 91.44 is Negative, 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
GATX	73 Outperform	$5.88B	19.36	11.93%	1.44%	10.66%	13.61%
AL	73 Outperform	$7.15B	7.43	12.74%	1.37%	9.67%	96.43%
WSC	66 Neutral	$3.86B	17.37	21.15%	1.32%	-3.64%	867.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
R	61 Neutral	$7.27B	15.14	16.26%	1.91%	1.68%	9.91%
HRI	58 Neutral	$4.71B	―	-4.05%	1.95%	19.40%	-120.47%
MGRC	58 Neutral	$2.54B	17.68	12.70%	1.85%	4.77%	-35.44%

GATX Corporate Events

GATX Sells $400 Million in Senior Notes

On October 22, 2025, GATX Corporation entered into an Underwriting Agreement with BofA Securities, Citigroup Global Markets, and Morgan Stanley to sell $200 million of 5.500% Senior Notes due 2035 and $200 million of 6.050% Senior Notes due 2054. This transaction increases the outstanding amounts of GATX’s 2035 and 2054 Notes to $700 million and $900 million, respectively, potentially strengthening the company’s financial position.

The most recent analyst rating on (GATX) stock is a Buy with a $192.00 price target. To see the full list of analyst forecasts on GATX stock, see the GATX Stock Forecast page.

GATX Corporation Reports Steady Q3 2025 Earnings

GATX Corporation, headquartered in Chicago, is a global leader in leasing transportation assets, including railcars, aircraft spare engines, and tank containers, serving various industries worldwide. In its latest earnings report, GATX Corporation announced a third-quarter net income of $82.2 million, or $2.25 per diluted share, for 2025, slightly down from $89.0 million, or $2.43 per diluted share, in the same period of 2024. The company maintained its full-year earnings guidance of $8.50 to $8.90 per diluted share, highlighting strong fleet utilization and robust performance across its aircraft spare engine leasing portfolios. Key financial metrics revealed a total investment volume of $361.7 million for the third quarter, contributing to a year-to-date total of $877.0 million. Rail North America’s fleet utilization remained high at 98.9%, with a renewal success rate of 87.1%, while GATX Rail Europe’s utilization was slightly lower at 93.7% due to macroeconomic headwinds. The company’s engine leasing segment showed significant growth, driven by strong global demand for aircraft spare engines. Looking ahead, GATX Corporation remains optimistic about its financial performance for the rest of the year, supported by stable market conditions and strategic investments in its rail and engine leasing businesses.

GATX Corporation’s Earnings Call: Mixed Sentiments and Strong Guidance

The recent earnings call from GATX Corporation reflected a mixed sentiment, highlighting strong performance in North America with high fleet utilization and increased remarketing income. Positive growth was also noted in engine leasing and robust operations in India. However, the company faced challenges such as decreased quarterly net income, market difficulties in Europe, and rising maintenance costs in North America.

GATX Reports Q3 2025 Financial Results Amid Challenges

On October 21, 2025, GATX Corporation reported its third-quarter financial results, showing a net income of $82.2 million, a decrease from $89.0 million in the same quarter of 2024. Despite macroeconomic uncertainties, GATX maintained strong fleet utilization rates in North America and Europe, with significant investments in railcars and engines. The company continues to expect full-year earnings to be between $8.50 and $8.90 per diluted share, excluding tax adjustments and other items. GATX’s strategic moves, including a pending acquisition of Wells Fargo’s rail assets and a recent agreement to acquire railcars from DB Cargo AG, aim to strengthen its market position and diversify its portfolio.

The most recent analyst rating on (GATX) stock is a Buy with a $201.00 price target. To see the full list of analyst forecasts on GATX stock, see the GATX Stock Forecast page.

GATX Corporation Reports Strong Q2 2025 Earnings

GATX Corporation, headquartered in Chicago, Illinois, is a leading global provider of leasing services for transportation assets, including railcars, aircraft spare engines, and tank containers, with a focus on safety and sustainability.

GATX Earnings Call Highlights Strong Growth Amid Challenges

The latest earnings call from GATX Corporation painted a picture of robust financial health, marked by significant gains in net income and high fleet utilization rates, particularly in North America. The positive sentiment was tempered by challenges in Europe and a stagnation in new investments in engine leasing. Nonetheless, the company’s increased earnings guidance suggests a favorable outlook moving forward.

GATX Reports Strong Q2 2025 Financial Results

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.