GATX Corporation

GATX Corporation

GATXยทNYSE

$166.79

-0.66%
IndustrialsRental & Leasing Services

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.

At a Glance

Live Snapshot
Market Cap$5.92B
EPS9.1400
P/E Ratio18.25
Earnings Date08/04/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 18.3).

Valuation inputs: P/E 18.3, earnings yield +5.5%, momentum -0.7%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +12.1%, ROIC +2.5%).

Profitability stack: net margin +19.1%, ROE +12.1%, ROIC +2.5%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +80.1%, momentum -0.7%, net margin +19.1%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

gatx

GATX Corporation Market vs Earnings Trajectory

GATX ยท NYSE

Loading price and EPS data...

GATX Corporation

GATX Corporation Fair Value Envelope

GATX ยท NYSE

Our analysis suggests that GATX has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $166.79, this represents a potential HIDDEN relative to our calculated worth for GATX Corporation.

Intrinsic Value
Current Price: $166.79
3Y+107.0%
5Y+116.0%
10Y+44.0%
3Y+37.0%
5Y+44.0%
10Y+23.0%
3Y+114.0%
5Y+120.0%
10Y+30.0%
3Y+21.0%
5Y+51.0%
10Y+4.0%
3Y-5.0%
5Y+58.0%
10Y+688.0%
3Y+82.0%
5Y+105.0%
10Y+158.0%
GATX Corporation

GATX Corporation Profit Bridge

GATX ยท NYSE
Revenue1.74B
Cost of Goods Sold (894.90M)
Gross Profit845.50M
Operating Expenses (311.40M)
Operating Income534.10M
Interest Expense (419.80M)
Other Income/Expense-137.70M
Pretax Income396.40M
Income Tax (63.10M)
Net Income333.30M
Net Income
333.30M

Profitability Analysis

Gross Margin

48.6%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

30.7%

Outstanding operational efficiency. The company generates substantial profit from core operations.

Net Profit Margin

19.2%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

15.9%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.

48.58%
Gross Profit Margin
1%
3Y+8.0%
5Y+19.0%
10Y+18.0%
30.69%
Operating Profit Margin
3%
3Y+15.0%
5Y+29.0%
10Y+19.0%
19.15%
Net Profit Margin
7%
3Y+56.0%
5Y+53.0%
10Y+6.0%
12.12%
Return on Equity
4%
3Y+58.0%
5Y+57.0%
10Y-37.0%
1.82%
Return on Assets
-21%
3Y+18.0%
5Y+8.0%
10Y-50.0%
2.50%
Return on Invested Capital
-23%
3Y-2.0%
5Y-5.0%
10Y-31.0%
GATX

GATX Corporation Cash Conversion Engine

GATX ยท NYSE
Net Income327.80M
Depreciation & Amortization452.30M
Stock-Based Compensation25.00M
Change in Working Capital-11.80M
Others-198.40M
Capital Expenditures-1.33B
Free Cash Flow-683.60M

Cash Flow Quality Analysis

FCF Conversion Rate

-208.5%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

205.5%

Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.

FCF Growth Trend

+36.2%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$11.80M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.

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GATX Corporation Funding & Solvency Profile

GATX ยท NYSE
Cash & Cash Equivalents740.90M
Net Receivables0.00
Inventory0.00
Other Current Assets0.00
Total Current Assets741 M
Property, Plant & Equipment285.60M
Goodwill & Intangible Assets124.60M
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets286 M
Total Assets
17.94B

Financial Health Analysis

Debt-to-Equity Ratio

3.91x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

741 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

4% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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GATX Corporation Street Expectations Map

GATX ยท NYSE

Wall Street analysts project that GATX stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 220.00, with estimates ranging from a low of 218.00 to a high of 222.00.

Lowest Target
218.00
30.70%
Consensus Target
220.00
31.90%
Highest Target
222.00
33.10%

The consensus 1-year price target stands at 220.00, with estimates ranging from a low of 218.00 to a high of 222.00.

Analyst Consensus Analysis

Upside Potential

+31.9%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

1.8% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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GATX Corporation Insider Positioning

GATX ยท NYSE

During the last 12 months, insiders have sold $2.25M worth of GATX shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

2.7K

485.48K

Net Activity

-485K

-$485K

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

11.1K

1.77M

Net Activity

-1.8M

-$1.77M

Top Buyers

No buying activity

Top Sellers

1
ETA

Ellman Thomas A.

Officer: Evp & Cfo

3.9K sharesโ€ข1 transactions

$621K

2
PG

Phillips Geoffrey

Officer: Sr. Vp, Operations

2.1K sharesโ€ข1 transactions

$354K

3
HK

Hillesland Kevin

Officer: Svp, Structured Finance

2.2K sharesโ€ข1 transactions

$336K

4
MJ

Mcmanus Jennifer

Officer: Sr. Vp & Controller

1.8K sharesโ€ข1 transactions

$279K

5
VAJ

Van Aken Jennifer

Officer: Sr Vp Treasurer & Cro

1.6K sharesโ€ข1 transactions

$262K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $2.25M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.39%
Dividend Yield
7%
3Y-28.0%
5Y-36.0%
10Y-58.0%
ย 

gatx Dividend History

GATX
10Y CAGR +5%
Latest $0.66
Annual $2.54
5 year growth trend
Last Period: +0%