Gatx Corporation Stock Beneish M Score

GATX Stock  USD 129.88  1.52  1.16%   
This module uses fundamental data of GATX to approximate the value of its Beneish M Score. GATX 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. Check out GATX Piotroski F Score and GATX Altman Z Score analysis.
  
At this time, GATX's Short and Long Term Debt Total is fairly stable compared to the past year. Short Term Debt is likely to rise to about 605.5 M in 2024, whereas Net Debt is likely to drop slightly above 3.6 B in 2024. At this time, GATX's Cash Per Share is fairly stable compared to the past year. Total Debt To Capitalization is likely to rise to 0.84 in 2024, whereas Short Term Coverage Ratios is likely to drop 0.86 in 2024.
At this time, it appears that GATX is an unlikely manipulator. The earnings manipulation may begin if GATX'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 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'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.
-3.03
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

-2.17

Focus
Expense Coverage

0.74

Focus
Gross Margin Strengs

1.2

Focus
Accruals Factor

0.74

Focus
Depreciation Resistance

1.7

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

1.06

Focus

GATX 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'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
Net Receivables207.5 M218.4 M
Notably Down
Slightly volatile
Total Revenue1.3 B1.4 B
Sufficiently Down
Slightly volatile
Total Assets6.2 B11.6 B
Way Down
Slightly volatile
Total Current Assets638.7 M669.2 M
Sufficiently Down
Slightly volatile
Non Current Assets Total11.5 B10.9 B
Sufficiently Up
Slightly volatile
Property Plant Equipment10 B9.5 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization237.4 M392.1 M
Way Down
Slightly volatile
Selling General Administrative145.7 M205.7 M
Way Down
Slightly volatile
Total Current Liabilities857.1 M816.3 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total4.6 B8.5 B
Way Down
Slightly volatile
Short Term Debt605.5 M576.7 M
Sufficiently Up
Slightly volatile
Long Term Debt4.3 B7.4 B
Way Down
Slightly volatile
Total Cash From Operating Activities403 M520.4 M
Significantly Down
Slightly volatile
Long Term Investments540 M627 M
Fairly Down
Slightly volatile
Gross Profit Margin0.550.4588
Fairly Up
Very volatile

GATX 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's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards GATX in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find GATX's degree of accounting gimmicks and manipulations.

About GATX 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.

Accumulated Depreciation

(3.24 Billion)

GATX reported Accumulated Depreciation of (3.08 Billion) in 2023

GATX 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. 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.
201920202021202220232024 (projected)
Net Receivables150M142.2M163.8M162M218.4M207.5M
Total Revenue1.2B1.2B1.3B1.3B1.4B1.3B
Total Assets8.3B8.9B9.5B10.1B11.6B6.2B
Total Current Assets676.4M434.8M508.3M654.5M669.2M638.7M
Net Debt5.1B5.4B5.8B6.4B7.2B3.6B
Long Term Debt4.8B5.4B5.9B6.4B7.4B4.3B
Operating Income274.1M(56.6M)(71.2M)(58.1M)1.1B1.2B
Investments(439.7M)131.1M186.7M121.1M(1.3B)(1.3B)

About GATX Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze GATX Corporation's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of GATX using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of GATX Corporation 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 operates as railcar leasing company in the United States and internationally. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois. GATX Corp operates under Rental Leasing Services classification in the United States and is traded on New York Stock Exchange. It employs 1863 people.

GATX Investors Sentiment

The influence of GATX'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. 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 market does not have solid backing from leading economists and market statisticians.
Investor biases related to GATX's public news can be used to forecast risks associated with an investment in GATX. The trend in average sentiment can be used to explain how an investor holding GATX can time the market purely based on public headlines and social activities around GATX Corporation. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
GATX's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for GATX's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average GATX's news discussions. The higher the estimated score, the more favorable is the investor's outlook on GATX.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards GATX in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, GATX's short interest history, or implied volatility extrapolated from GATX options trading.

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When determining whether GATX offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of GATX's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Gatx Corporation Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Gatx Corporation Stock:
Check out GATX Piotroski F Score and GATX Altman Z Score analysis.
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Is GATX's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GATX. If investors know GATX will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GATX listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.331
Dividend Share
2.2
Earnings Share
7.12
Revenue Per Share
39.521
Quarterly Revenue Growth
0.143
The market value of GATX is measured differently than its book value, which is the value of GATX that is recorded on the company's balance sheet. Investors also form their own opinion of GATX's value that differs from its market value or its book value, called intrinsic value, which is GATX'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's market value can be influenced by many factors that don't directly affect GATX's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GATX's value and its price as these two are different measures arrived at by different means. Investors typically determine if GATX is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GATX'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.