GATX Corp Beneish M Score

GATX -  USA Stock  

USD 90.98  1.01  1.12%

This module uses fundamental data of GATX Corp to approximate the value of its Beneish M Score. GATX Corp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check GATX Corp Piotroski F Score and GATX Corp Altman Z Score analysis.

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GATX Corp Issuance Repayment of Debt Securities is fairly stable at the moment as compared to the past year. GATX Corp reported Issuance Repayment of Debt Securities of 492.9 Million in 2020. Long Term Debt to Equity is likely to rise to 3.08 in 2021, whereas Total Debt is likely to drop slightly above 5.5 B in 2021. GATX Corp Current Ratio is fairly stable at the moment as compared to the past year. GATX Corp reported Current Ratio of 2.54 in 2020. Dividend Yield is likely to rise to 0.0233 in 2021, whereas Calculated Tax Rate is likely to drop 24.45 in 2021.
At this time, it appears that GATX Corp is an unlikely manipulator. The earnings manipulation may begin if GATX Corp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by GATX Corp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of GATX Corp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.41
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.01
Asset Quality
1.03
Expense Coverage
0.97
Gross Margin Strengs
1.03
Accruals Factor
0.97
Depreciation Resistance
0.95
Net Sales Growth
1.14
Financial Leverage Condition
0.99

GATX Corp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if GATX Corp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues1.4 B1.2 B
Fairly Up
Increasing
Stable
Selling General and Administrative Expense190.2 M172 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations480.1 M428.3 M
Moderately Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion349.4 M342.8 M
Fairly Up
Increasing
Slightly volatile
Total Assets8.8 B8.9 B
Fairly Down
Increasing
Slightly volatile
Investments583 M584.7 M
Slightly Down
Increasing
Stable
Property Plant and Equipment Net7.3 B7.5 B
Sufficiently Down
Increasing
Slightly volatile
Trade and Non Trade Receivables203.1 M175.5 M
Fairly Up
Decreasing
Slightly volatile
Total Liabilities6.9 BB
Fairly Down
Increasing
Slightly volatile
Current Assets536 M434.8 M
Fairly Up
Decreasing
Slightly volatile
Current Liabilities216.6 M170.9 M
Significantly Up
Decreasing
Stable
Total Debt5.5 B5.7 B
Sufficiently Down
Increasing
Slightly volatile
Operating Income301.9 M273.9 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.660.642
Fairly Up
Increasing
Slightly volatile

GATX Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between GATX Corp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards GATX Corp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find GATX Corp's degree of accounting gimmicks and manipulations.

About GATX Corp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

349.36 MillionShare
GATX Corp Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. GATX Corp reported Depreciation Amortization and Accretion of 342.8 Million in 2020

GATX Corp Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as GATX Corp. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201620172018201920202021 (projected)
Trade and Non Trade Receivables227.5 M213.1 M218.3 M157.9 M175.5 M203.07 M
Revenues1.42 B1.38 B1.18 B1.2 B1.21 B1.38 B
Total Assets7.11 B7.42 B7.62 B8.29 B8.94 B8.76 B
Current Assets538.6 M512.8 M313.7 M322.2 M434.8 M535.98 M
Property Plant and Equipment Net5.8 B6.19 B6.55 B6.88 B7.54 B7.26 B
Depreciation Amortization and Accretion310.2 M322.7 M327.3 M332.7 M342.8 M349.36 M
Selling General and Administrative Expense169 M180 M182.5 M180.4 M172 M190.22 M
Total Liabilities5.76 B5.63 B5.83 B6.45 B6.98 B6.88 B
Current Liabilities178.6 M158.6 M288.3 M164.9 M170.9 M216.59 M
Total Debt4.27 B4.39 B4.54 B5.23 B5.7 B5.46 B
Operating Income355.5 M320.8 M260.9 M274.1 M273.9 M301.85 M
Net Cash Flow from Operations629.4 M496.8 M508.5 M462.6 M428.3 M480.05 M
Investments387 M441 M464.5 M512.6 M584.7 M583.02 M
Gross Margin0.570.580.590.640.650.66

About GATX Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze GATX Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of GATX Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of GATX Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
GATX Corporation strives to be recognized as the finest railcar leasing company in the world by our customers, our shareholders, our employees and the communities where we operate. GATX has been headquartered in Chicago, Illinois since its founding in 1898. GATX Corp operates under Rental Leasing Services classification in the United States and is traded on New York Stock Exchange. It employs 1904 people.

GATX Corp Investors Sentiment

The influence of GATX Corp's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in GATX Corp. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - GATX

GATX Corp Investor Sentiment

Most of Macroaxis users are currently bullish on GATX Corp. What is your judgment towards investing in GATX Corp? Are you bullish or bearish?
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Bearish
98% Bullish
2% Bearish
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Please check GATX Corp Piotroski F Score and GATX Corp Altman Z Score analysis. Note that the GATX Corp information on this page should be used as a complementary analysis to other GATX Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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The market value of GATX Corp is measured differently than its book value, which is the value of GATX Corp that is recorded on the company's balance sheet. Investors also form their own opinion of GATX Corp's value that differs from its market value or its book value, called intrinsic value, which is GATX Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GATX Corp's market value can be influenced by many factors that don't directly affect GATX Corp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GATX Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine GATX Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GATX Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.