GATX Corp Story

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GATX -- USA Stock  

USD 96.07  3.22  3.24%

Let's try to break down what's happening with GATX amid unprecedented political, and economic uncertainty. GATX is currently traded for 88.37. The entity has historical hype elasticity of -0.4. The average price elasticity to hype of competition is about 0.13. The firm is forecasted to decline in value after the next headline, with the price expected to drop to 87.97. The average volatility of media hype impact on the company stock price is way over 100%. The price decrease on the next news is expected to be -0.45%, whereas the daily expected return is currently at 0.45 percent. The volatility of related hype on GATX is about 737.93% with expected price after next announcement by competition of 88.5 Given the investment horizon of 30 days the next forecasted press release will be in about 10 days.
Published over three weeks ago
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Is GATX (NYSE:GATX) gaining more confidence from investors?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. GATX has an asset utilization ratio of 20.31 percent. This suggests that the company is making $0.2 for each dollar of assets. An increasing asset utilization means that GATX Corporation is more efficient with each dollar of assets it utilizes for everyday operations.
The successful prediction of GATX Corp stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as GATX Corp, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of GATX Corp based on GATX Corp hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to GATX Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to GATX Corp's related companies.

Use Technical Analysis to project GATX Corp expected Price

GATX Corp technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of GATX Corp technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of GATX Corp trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How GATX Corp utilizes its cash?

To perform a cash flow analysis of GATX Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash GATX Corp is receiving and how much cash it distributes out in a given period. The GATX Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
GATX Corp Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. GATX Corp reported Net Cash Flow from Operations of 428.3 Million in 2020

Payment of 725 shares by Tezel Necati Gokce of GATX Corp subject to Rule 16b-3

Legal trades by GATX Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
GATX Corp insider trading alert for payment of common stock by Tezel Necati Gokce, Exec. VP and Pres. Rail Intl., on 18th of February 2021. This event was filed by Gatx Corp with SEC on 2021-02-18. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down GATX Corp Indicators

The entity reported the previous year's revenue of 1.4 B. Net Income was 204.9 M with profit before overhead, payroll, taxes, and interest of 867.3 M.

Cost of Revenue Breakdown

GATX Cost of Revenue yearly trend continues to be fairly stable with very little volatility. Cost of Revenue is likely to outpace its year average in 2021. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. GATX Cost of Revenue is fairly stable at the moment as compared to the past year. GATX reported Cost of Revenue of 509.13 Million in 2020
2014685.9 Million
2015620.8 Million
2016596.6 Million
2017568.8 Million
2018557 Million
2019565.7 Million
2020509.13 Million
2021522.17 Million

Can GATX correct the current slide?

The jensen alpha is down to 0.31 as of today. GATX Corporation has relatively low volatility with skewness of 0.5 and kurtosis of 1.35. However, we advise all investors to independently investigate GATX Corporation to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Bottom Line On GATX

While some firms in the rental & leasing services industry are either recovering or due for a correction, GATX may not be as strong as the others in terms of longer-term growth potentials. All things considered, as of the 28th of January 2021, we believe that at this point, GATX is fairly valued with below average probability of bankruptcy within the next 2 years. Our present buy-or-sell advice on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of GATX Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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