GATX (GATX) AI Stock Analysis

• Market Cap: $6.19B
• Dividend Yield: 1.41%
• Average Volume (3M): 167.40K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.76
• 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: 198,466
• 30 Day Avg. Volume: 167,403
• 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: 2.36
• Enterprise Value/Revenue: 8.57
• Enterprise Value/Gross Profit: 17.55
• Enterprise Value/Ebitda: 13.34
• 1Y Price Target: $192.00
• Price Target Upside: 10.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 8.77
• Revenue Forecast (FY): $1.73B

• Rating: 76 Outperform
• Price Target: $187.00 ▲(7.86% Upside)

GATX's strong financial performance and positive corporate events are the most significant factors contributing to its score. The technical analysis supports a positive trend, while the valuation is fair. The earnings call provided a balanced view with both strengths and challenges.

Positive Factors

High Fleet Utilization

High fleet utilization indicates strong demand and efficient asset management, contributing to stable revenue and operational efficiency.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt management.

Remarketing Income Growth

Remarketing income growth reflects effective asset management and the ability to capitalize on market opportunities, boosting profitability.

Negative Factors

High Debt Levels

Significant leverage can increase financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.

Decreased Quarterly Net Income

A decline in net income may indicate challenges in maintaining profitability, affecting investor confidence and financial stability.

Increased Maintenance Expenses

Rising maintenance costs can pressure margins, reducing profitability and potentially necessitating higher pricing or cost-cutting measures.

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 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 shows strong profitability with high gross and net profit margins, and robust cash flow generation. However, the high debt-to-equity ratio poses a potential risk, indicating significant leverage.

Income Statement

GATX demonstrates strong profitability with a consistent increase in gross profit margin and net profit margin over the years. The TTM data shows a gross profit margin of 48.83% and a net profit margin of 18.35%, indicating efficient cost management and strong bottom-line performance. Revenue growth is steady, with a TTM growth rate of 2.03%, reflecting a positive trajectory in sales. EBIT and EBITDA margins are robust, highlighting operational efficiency.

Balance Sheet

The company maintains a high debt-to-equity ratio of 3.32 in the TTM, which is a potential risk factor, indicating significant leverage. However, the return on equity is healthy at 12.06%, suggesting effective use of equity to generate profits. The equity ratio stands at 20.44%, which shows a moderate level of equity financing relative to total assets.

Cash Flow

GATX shows a remarkable improvement in free cash flow, with a growth rate of 382.20% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is nearly 2, reflecting efficient conversion of earnings into cash. The free cash flow to net income ratio is 1.0, demonstrating that the company is generating sufficient free cash flow relative to its 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	-531.50M	-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	-916.60M	-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: 173.38
• 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 173.38 is above the 20-day moving average (MA) of 166.48, above the 50-day MA of 162.03, and above the 200-day MA of 157.20, indicating a bullish trend. The MACD of 3.67 indicates Negative momentum. The RSI at 69.51 is Neutral, neither overbought nor oversold. The STOCH value of 82.94 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	76 Outperform	$6.19B	20.26	11.93%	1.41%	10.66%	13.61%
AL	73 Outperform	$7.17B	7.44	12.74%	1.37%	9.67%	96.43%
R	73 Outperform	$7.95B	16.71	16.26%	1.75%	1.68%	9.91%
WSC	69 Neutral	$3.54B	16.09	21.15%	1.44%	-3.64%	867.62%
HRI	67 Neutral	$5.19B	-61.98	-4.05%	1.79%	19.40%	-120.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGRC	58 Neutral	$2.66B	18.33	12.70%	1.79%	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.

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.