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GATX
(NYSE:GATX)
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Rating:66Neutral
Price Target:
$193.00
â–²(4.53% Upside)
Action:Reiterated
Date:08/01/26
The score is held back primarily by balance-sheet leverage and inconsistent free-cash-flow conversion despite solid operating profitability. Offsetting that, recent operational performance and management commentary point to strong demand conditions (very high utilization and robust lease repricing) and constructive guidance, while valuation is reasonable and technicals look neutral-to-slightly supportive around key moving averages.
Positive Factors
Very high fleet utilization
Sustained ~98% utilization signals structurally tight supply-demand in core markets, supporting durable recurring lease revenue and reducing idle-asset drag. High utilization underpins pricing leverage, improves asset remarketing economics, and raises long-term returns on invested capital across cycles.
Negative Factors
Elevated balance-sheet leverage
Material leverage is inherent in asset-leasing, but ~4.5x D/E meaningfully increases interest-rate and refinancing sensitivity. High indebtedness limits financial flexibility for acquisitions, buybacks or opportunistic investments, and amplifies downside risk if revenue or disposition timing deteriorates.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high fleet utilization
Sustained ~98% utilization signals structurally tight supply-demand in core markets, supporting durable recurring lease revenue and reducing idle-asset drag. High utilization underpins pricing leverage, improves asset remarketing economics, and raises long-term returns on invested capital across cycles.
Read all positive factors
GATX (GATX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.38B
Dividend Yield1.41%
Average Volume (3M)198.67K
Price to Earnings (P/E)17.8
Beta (1Y)0.75
Revenue Growth22.81%
EPS Growth15.43%
CountryUS
Employees2,371
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)10.17
Shares Outstanding35,300,000
10 Day Avg. Volume226,991
30 Day Avg. Volume198,669
Financial Highlights & Ratios
PEG Ratio1.08
Price to Book (P/B)2.21
Price to Sales (P/S)3.49
P/FCF Ratio-8.88
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$219.00Price Target Upside18.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)10.19
Revenue Forecast (FY)$2.36B
GATX Business Overview & Revenue Model
Company Description
GATX Corporation, established in Chicago, Illinois in 1898, is a prominent global equipment lessor. The company primarily provides railcar and locomotive leasing services across North America and internationally, catering to vital industries such ...
How the Company Makes Money
GATX primarily makes money by owning railcars and leasing them to shippers, railroads, and other logistics and industrial customers. Its largest revenue stream is recurring lease rental income generated under multi-year operating leases, where cus...
GATX Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial picture: EPS beat, very high fleet utilization, strong lease rate repricing (LPI +22.3%), solid secondary market demand and ~$50M of Q1 disposition gains, successful Wells Fargo integration, strong engine leasing fundamentals, and robust utilization in international markets (India 100%). The key negatives were timing-driven and transactional (lumpy remarketing income and limited JV disposition gains in Q1), a slightly lower renewal success rate versus prior-quarter outlier levels, and the usual maintenance and macro uncertainties. Management reiterated full-year guidance (including ~$200M of expected disposition gains and engine leasing segment profit of $180M–$185M) and framed the lowlights largely as timing or quarter-to-quarter noise rather than structural weaknesses.Positive Updates
EPS Beat and Year-over-Year Growth
Diluted EPS of $2.35 in Q1 2026 versus $2.15 in Q1 2025 (+$0.20, +9.3%), reported as a strong start to the year and described as in line with company expectations.
Negative Updates
Remarketing Income Lumpiness and JV Timing
Remarketing income at the Rolls-Royce joint venture was materially lower in Q1 (remarketing <10% of JV earnings vs ~33% historically); management described remarketing as 'lumpy' and timing-driven, weighing on quarter-to-quarter comparability.
Read all updates
Q1-2026 Updates
Positive
Negative
EPS Beat and Year-over-Year Growth
Diluted EPS of $2.35 in Q1 2026 versus $2.15 in Q1 2025 (+$0.20, +9.3%), reported as a strong start to the year and described as in line with company expectations.
Read all positive updates
Company Guidance
GATX reiterated its 2026 outlook with several specific targets and quarter-one datapoints: Q1 diluted EPS was $2.35 vs $2.15 a year ago, and management said the Wells Fargo JV should contribute roughly $0.20–$0.30 to full‑year EPS; full‑year gains on dispositions are still expected at about $200 million (roughly $130M GATX / $70M JV) while Q1 gains were ~ $50M; engine‑leasing segment profit is guided to $180–$185M; the Lease Price Index full‑year guide remains in the high‑teens to low‑20s (Q1 renewal price change 22.3%); renewal success was 79.1% in Q1 with an average renewal term of 56 months; Rail North America combined utilization was 98.1% (Wells entered 2026 at 96.5%), Rail International 94.7%, and India 100%; combined North America fleet is roughly 101K cars (98K non‑boxcar + ~3K boxcars); >8.4K cars placed under the 2022 Trinity supply agreement; maintenance expense guidance remains about $500M for the year (Q1 annualized ~$485M); and the JV reported a small first‑quarter noncontrolling interest loss (referenced ~$6.4M) that management expects to improve as planned asset dispositions occur.GATX Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
55
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.05B | 1.74B | 1.59B | 1.41B | 1.27B | 1.26B |
| Gross Profit | 947.40M | 845.50M | 760.90M | 647.30M | 572.60M | 539.20M |
| EBITDA | 1.05B | 1.27B | 1.02B | 901.00M | 762.40M | 776.30M |
| Net Income | 368.10M | 333.30M | 284.20M | 259.20M | 155.90M | 143.10M |
Balance Sheet | ||||||
| Total Assets | 17.72B | 18.31B | 12.30B | 11.33B | 10.07B | 9.54B |
| Cash, Cash Equivalents and Short-Term Investments | 747.10M | 4.98B | 401.60M | 450.70M | 452.20M | 344.30M |
| Total Debt | 12.48B | 12.81B | 8.41B | 7.63B | 6.72B | 6.19B |
| Total Liabilities | 14.13B | 14.67B | 9.86B | 9.05B | 8.04B | 7.52B |
| Stockholders Equity | 2.78B | 2.75B | 2.44B | 2.27B | 2.03B | 2.02B |
Cash Flow | ||||||
| Free Cash Flow | -4.69B | -683.60M | -1.07B | -1.14B | -722.30M | -622.90M |
| Operating Cash Flow | 837.90M | 648.10M | 602.10M | 520.40M | 533.50M | 507.20M |
| Investing Cash Flow | -4.07B | -117.80M | -1.42B | -1.22B | -1.07B | -916.60M |
| Financing Cash Flow | 3.22B | 4.05B | 770.50M | 844.10M | 504.40M | 463.10M |
GATX Technical Analysis
Positive
184.63
Price Trends
177.91
Positive
179.92
Positive
175.62
Positive
Market Momentum
0.14
Positive
53.03
Neutral
60.85
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 184.63 is above the 20-day moving average (MA) of 180.43, above the 50-day MA of 177.91, and above the 200-day MA of 175.62, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 60.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.99B | 19.66 | 12.44% | 1.63% | -0.92% | -39.51% | |
68 Neutral | $10.12B | 21.43 | 16.70% | 1.36% | 1.12% | 3.84% | |
66 Neutral | $6.38B | 17.76 | 13.35% | 1.38% | 22.81% | 15.43% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $4.31B | -64.22 | -7.45% | 1.06% | -2.51% | -162.51% | |
49 Neutral | $5.80B | 118.03 | 2.56% | 1.72% | 28.50% | 67.75% |
* Industrials Sector Average
GATX
GATX
180.64
24.82
15.93%
WSC
WillScot Mobile Mini Holdings
23.76
-0.12
-0.49%
HRI
Herc Holdings
173.51
51.16
41.82%
MGRC
Mcgrath Rentcorp
122.28
2.94
2.46%
R
Ryder System
263.96
87.48
49.57%
GATX Corporate Events
Business Operations and StrategyFinancial Disclosures
GATX boosts earnings guidance after strong quarterly results
Positive
Jul 30, 2026
On July 30, 2026, GATX reported strong second-quarter 2026 results, with net income rising to $103.4 million, or $2.84 per diluted share, from $75.5 million, or $2.06 per share, a year earlier. Net income for the first half of 2026 increased to $1...
Business Operations and StrategyM&A Transactions
GATX Increases Stake and Influence in GABX Leasing
Positive
Jul 1, 2026
On June 30, 2026, GATX exercised the first in a series of call options to acquire an additional interest in GABX Leasing Holding LLC, indirectly raising its stake in the GABX Leasing LLC joint venture from 30% to about 33.535%. The amended and res...
Business Operations and StrategyPrivate Placements and Financing
GATX Amends and Extends Five-Year Credit Facility
Positive
May 21, 2026
On May 21, 2026, GATX Corporation amended its existing five-year credit agreement, originally dated May 21, 2024, with a syndicate of banks and institutional lenders led by Citibank as administrative agent. The amendment extended the termination d...
Business Operations and StrategyFinancial Disclosures
GATX Posts Strong Q1 2026 Results, Maintains Guidance
Positive
May 7, 2026
On May 7, 2026, GATX reported first‑quarter 2026 net income of $85.5 million, or $2.35 per diluted share, up from $78.6 million, or $2.15 per share, a year earlier, driven by higher lease revenue and roughly $50 million in gains on asset sal...
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.