GATX Corp. (GATX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Oppenheimer Holdings, Inc.

Banco Latinoamericano de Comercio Exterior SA

NewtekOne, Inc.

Federal Agricultural Mortgage Corp.

Encore Capital Group, Inc.

Carlyle Secured Lending, Inc

GATX Corp.

Union Pacific Corp.

Norfolk Southern Corp.

CSX Corp.

PRA Group, Inc.

Why is GATX Corp. ?

Weak Long Term Fundamental Strength with a 4.72% CAGR growth in Net Sales over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 8.57 times
The company has been able to generate a Return on Equity (avg) of 9.48% signifying low profitability per unit of shareholders funds

Flat results in Jun 25

DIVIDEND PAYOUT RATIO(Y) Lowest at 29.51%

With ROCE of 4.67%, it has a expensive valuation with a 1.78 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 3.15%, its profits have risen by 9% ; the PEG ratio of the company is 4.4

Underperformed the market in the last 1 year

The stock has generated a return of 3.15% in the last 1 year, much lower than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GATX Corp. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is GATX Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

GATX Corp.

-100.0%

1.23

24.21%

S&P 500

15.4%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.72%

EBIT Growth (5y)

12.22%

EBIT to Interest (avg)

1.48

Debt to EBITDA (avg)

8.57

Net Debt to Equity (avg)

3.15

Sales to Capital Employed (avg)

0.15

Tax Ratio

22.45%

Dividend Payout Ratio

29.82%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

4.23%

ROE (avg)

9.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.21

EV to EBIT

38.00

EV to EBITDA

20.33

EV to Capital Employed

1.77

EV to Sales

11.53

PEG Ratio

4.36

Dividend Yield

1.25%

ROCE (Latest)

4.67%

ROE (Latest)

11.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 651.7 MM

ROCE(HY)

Highest at 12.54%

DIVIDEND PER SHARE(HY)

Highest at USD 7.55

NET SALES(Q)

Highest at USD 430.5 MM

RAW MATERIAL COST(Y)

Fallen by -4.39% (YoY

CASH AND EQV(HY)

Highest at USD 1,512.8 MM

OPERATING PROFIT(Q)

Highest at USD 249.3 MM

PRE-TAX PROFIT(Q)

At USD 78.6 MM has Grown at 84.94%

NET PROFIT(Q)

At USD 72.8 MM has Grown at 66.1%

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 29.51%

Here's what is working for GATX Corp.

Net Sales

Highest at USD 430.5 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Dividend per share

Highest at USD 7.55 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 651.7 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit

Highest at USD 249.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

At USD 78.6 MM has Grown at 84.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 72.8 MM has Grown at 66.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 1,512.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.39% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 112 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for GATX Corp.

Dividend Payout Ratio

Lowest at 29.51%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)