GATX (GATX) AI Stock Analysis

• Market Cap: $5.98B
• Dividend Yield: 1.42%
• Average Volume (3M): 172.75K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.88
• Revenue Growth: 11.74%
• EPS Growth: 33.85%
• Country: US
• Employees: 2,150
• Sector: Industrials
• Sector Strength: 73
• Industry: Rental & Leasing Services
• EPS (TTM): 2.06
• Shares Outstanding: 35,600,000
• 10 Day Avg. Volume: 170,975
• 30 Day Avg. Volume: 172,745
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 8.24
• Enterprise Value/Gross Profit: 16.79
• Enterprise Value/Ebitda: 30.43
• 1Y Price Target: $190.00
• Price Target Upside: 13.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $177.00 ▲(5.31% Upside)

GATX's overall stock score is driven by strong earnings performance and positive technical indicators. The company's profitability and growth prospects are promising, but high leverage and declining free cash flow pose risks. The stock's valuation is fair, and the positive earnings call sentiment further supports the score.

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 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 profitability and revenue growth, with healthy profit margins and efficient operations. However, high leverage and declining free cash flow present potential risks, necessitating careful debt management and improved cash flow generation.

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	1.67B	1.59B	1.41B	1.27B	1.26B	1.21B
Gross Profit	820.40M	760.90M	647.30M	572.60M	539.20M	494.20M
EBITDA	452.70M	1.02B	916.20M	768.80M	776.30M	657.80M
Net Income	319.60M	284.20M	259.20M	155.90M	143.10M	151.30M
Balance Sheet
Total Assets	13.20B	12.30B	11.33B	10.07B	9.54B	8.94B
Cash, Cash Equivalents and Short-Term Investments	754.60M	401.60M	450.70M	452.20M	344.30M	292.20M
Total Debt	9.02B	8.41B	7.63B	6.71B	6.19B	5.73B
Total Liabilities	10.53B	9.86B	9.05B	8.04B	7.52B	6.98B
Stockholders Equity	2.67B	2.44B	2.27B	2.03B	2.02B	1.96B
Cash Flow
Free Cash Flow	147.20M	602.10M	-1.14B	-722.30M	-622.90M	-432.50M
Operating Cash Flow	651.70M	602.10M	520.40M	533.50M	507.20M	428.30M
Investing Cash Flow	-1.08B	-1.42B	-1.22B	-1.07B	-917.70M	-664.00M
Financing Cash Flow	356.80M	770.50M	844.10M	504.40M	463.10M	377.40M

GATX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 168.08
• 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 168.08 is above the 20-day moving average (MA) of 163.93, above the 50-day MA of 158.32, and above the 200-day MA of 155.55, indicating a bullish trend. The MACD of 3.44 indicates Negative momentum. The RSI at 65.45 is Neutral, neither overbought nor oversold. The STOCH value of 53.04 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	82 Outperform	$7.12B	7.73	12.59%	1.38%	8.08%	76.55%
MGRC	81 Outperform	$3.09B	12.24	23.85%	1.57%	8.78%	117.40%
R	78 Outperform	$7.67B	16.06	16.38%	1.80%	3.68%	6.61%
GATX	74 Outperform	$5.98B	19.21	12.54%	1.42%	11.74%	33.85%
Sector *	63 Neutral	$10.73B	15.32	7.37%	2.01%	2.86%	-14.57%
WSC	62 Neutral	$4.22B	38.76	9.82%	0.91%	-2.34%	-37.24%
HRI	61 Neutral	$4.59B	159.99	1.41%	2.00%	11.41%	-92.67%

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.