GATX Corp Stock Story

GATX -  USA Stock  

USD 91.82  1.69  1.88%

15% of stocks are less volatile than GATX Corp, and 98% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. As many old-fashioned traders are trying to avoid industrials space, it makes sense to break down GATX Corp a little further and try to understand its current volatility patterns. We will evaluate if GATX Corp's current volatility will continue into May.
Published over three months ago
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Will GATX Corp (NYSE:GATX) low risk outlook last untill May?
GATX Corp currently holds roughly 297.8 M in cash with 428.3 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.48.
Volatility is a rate at which the price of GATX Corp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of GATX Corp may increase or decrease. In other words, similar to GATX Corp's beta indicator, it measures the risk of GATX Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of GATX Corp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is GATX Corp's Liquidity

GATX Corp financial leverage refers to using borrowed capital as a funding source to finance GATX Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. GATX Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between GATX Corp's total debt and its cash.

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

Exercise or conversion by Robert Lyons of 20500 shares 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 exercise of stock-settled stock appreciation right by Robert Lyons, EVP and President Rail NA, on 7th of June 2021. This event was filed by Gatx Corp with SEC on 2021-06-07. Statement of changes in beneficial ownership - SEC Form 4. Robert Lyons currently serves as executive vice president, president - rail north america of GATX Corp [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.

Detailed Perspective On GATX Corp

GATX Corp reported the previous year's revenue of 1.21 B. Net Income was 150.2 M with profit before overhead, payroll, taxes, and interest of 824.7 M.
 2018 2019 2020 2021 (projected)
Consolidated Income211.3 M211.2 M151.3 M197.6 M
Direct Expenses824.2 M858.4 M715 M871.05 M

Will GATX Corp recoup in May?

GATX Corp current downside deviation rises over 1.73. GATX Corp has relatively low volatility with skewness of -0.16 and kurtosis of 0.55. However, we advise all investors to independently investigate GATX Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GATX Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact GATX Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Current Takeaway on GATX Corp Investment

While some other companies under the rental & leasing services industry are still a bit expensive, GATX Corp may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to GATX Corp.

Editorial Staff

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 Achuva Shats 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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