GATX (GATX) AI Stock Analysis

• Market Cap: $5.63B
• Dividend Yield: 1.49%
• Average Volume (3M): 170.28K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.88
• Revenue Growth: 11.74%
• EPS Growth: 33.85%
• Country: US
• Employees: 2,150
• Sector: Industrials
• Sector Strength: 79
• Industry: Rental & Leasing Services
• EPS (TTM): 2.06
• Shares Outstanding: 35,600,000
• 10 Day Avg. Volume: 152,040
• 30 Day Avg. Volume: 170,279
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.45
• Enterprise Value/Revenue: 8.46
• Enterprise Value/Gross Profit: 17.41
• Enterprise Value/Ebitda: 13.35
• 1Y Price Target: $183.00
• Price Target Upside: 14.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $177.00 ▲(10.65% Upside)

GATX's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical analysis supports a bullish outlook, while valuation remains moderate. High leverage is a notable risk.

GATX Business Overview & Revenue Model

Company Description

GATX Corporation is a global leader in the railcar leasing and maintenance industry, primarily serving the freight transportation market. Founded in 1898 and headquartered in Chicago, Illinois, GATX operates in two main segments: Rail and Specialty. The Rail segment focuses on leasing freight railcars and providing related services, while the Specialty segment encompasses the leasing of tanks and other specialized equipment for various industrial applications. GATX is known for its extensive fleet of railcars and its commitment to maintaining high standards for safety and compliance.

How the Company Makes Money

GATX generates revenue primarily through leasing agreements for its railcars and specialized equipment. The company's main revenue stream comes from long-term leases with customers in the freight transportation sector, which provide a steady income. Additionally, GATX earns revenue from maintenance services and repairs for its leased assets. The company also benefits from strategic partnerships with major railroads and industrial companies, which enhance its market reach and operational efficiency. Key factors contributing to GATX's earnings include its diverse asset base, a strong demand for freight transportation, and favorable market conditions in the rail industry.

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

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	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	767.60M	647.30M	572.60M	539.20M	494.20M
EBITDA	1.02B	916.20M	701.40M	776.30M	657.80M
Net Income	284.20M	259.20M	122.30M	143.10M	88.00M
Balance Sheet
Total Assets	12.30B	11.33B	10.07B	9.54B	8.94B
Cash, Cash Equivalents and Short-Term Investments	401.60M	450.70M	452.20M	344.30M	292.20M
Total Debt	8.41B	7.63B	6.71B	6.19B	5.73B
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

• Technical Analysis Sentiment: Positive
• Last Price: 159.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 159.96 is above the 20-day moving average (MA) of 154.10, above the 50-day MA of 155.02, and above the 200-day MA of 154.16, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 74.36 is Neutral, 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	80 Outperform	$6.49B	7.06	12.59%	1.50%	8.08%	76.55%
R	78 Outperform	$7.39B	15.47	16.38%	1.84%	3.68%	6.61%
GATX	74 Outperform	$5.63B	18.08	12.54%	1.49%	11.74%	33.85%
Sector *	71 Outperform	¥269.83B	15.10	8.31%	2.77%	6.08%	11.04%
HRI	67 Neutral	$4.15B	144.72	1.41%	2.22%	11.41%	-92.67%
WSC	62 Neutral	$4.40B	40.40	9.82%	0.57%	-2.34%	-37.24%

GATX Corporate Events

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.

GATX Announces New Board Member Appointment

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.

GATX Expands Credit Capacity with New Agreement

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.

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.