GATX Corporation
GATX Corporation Fundamental Analysis
GATX Corporation (GATX) shows moderate financial fundamentals with a PE ratio of 21.22, profit margin of 19.15%, and ROE of 12.47%. The company generates $1.7B in annual revenue with strong year-over-year growth of 12.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GATX's fundamental strength across five key dimensions:
Efficiency Score
WeakGATX struggles to generate sufficient returns from assets.
Valuation Score
ModerateGATX shows balanced valuation metrics.
Growth Score
ModerateGATX shows steady but slowing expansion.
Financial Health Score
ModerateGATX shows balanced financial health with some risks.
Profitability Score
WeakGATX struggles to sustain strong margins.
Key Financial Metrics
Is GATX Expensive or Cheap?
P/E Ratio
GATX trades at 21.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GATX's PEG of 3.19 indicates potential overvaluation.
Price to Book
The market values GATX Corporation at 2.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.35 times EBITDA. This is generally considered low.
How Well Does GATX Make Money?
Net Profit Margin
For every $100 in sales, GATX Corporation keeps $19.15 as profit after all expenses.
Operating Margin
Core operations generate 22.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.47 in profit for every $100 of shareholder equity.
ROA
GATX Corporation generates $1.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GATX Corporation generates strong operating cash flow of $707.40M, reflecting robust business health.
Free Cash Flow
GATX Corporation generates weak or negative free cash flow of $-529.70M, restricting financial flexibility.
FCF Per Share
Each share generates $-14.85 in free cash annually.
FCF Yield
GATX converts -7.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How GATX Stacks Against Its Sector Peers
| Metric | GATX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.22 | 26.76 | Better (Cheaper) |
| ROE | 12.47% | 1300.00% | Weak |
| Net Margin | 19.15% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 10.68 | Weak Liquidity |
| ROA | 1.85% | -1545134.00% (disorted) | Weak |
GATX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GATX Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.53%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
56.75%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
29.79%
Industry Style: Cyclical, Value, Infrastructure
High Growth