GATX Corp Profitability Analysis

GATX -  USA Stock  

USD 90.98  1.01  1.12%

For GATX Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GATX Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GATX Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GATX Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GATX Corp over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis.

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GATX Corp Return on Sales is fairly stable at the moment as compared to the past year. GATX Corp reported Return on Sales of 0.31 in 2020. Sales per Share is likely to rise to 36.12 in 2021, whereas Price to Sales Ratio is likely to drop 2.34 in 2021. GATX Corp Consolidated Income is fairly stable at the moment as compared to the past year. GATX Corp reported Consolidated Income of 151.3 Million in 2020. Net Income is likely to rise to about 197.6 M in 2021, whereas Accumulated Other Comprehensive Income is likely to drop (148.4 M) in 2021.

GATX Corp Revenues

1.38 BillionShare
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.

GATX Corp Current Ratio vs. Earnings Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining GATX Corp's current stock value. Our valuation model uses many indicators to compare GATX Corp value to that of its competitors to determine the firm's financial worth.
GATX Corp is one of the top stocks in earnings per share category among related companies. It is rated # 4 in current ratio category among related companies fabricating about  1.47  of Current Ratio per Earnings Per Share. . 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

GATX Corp Current Ratio vs. Earnings Per Share

Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
GATX Corp 
Earnings per Share 
 = 
Earnings 
Average Shares 
3.99 X
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
GATX Corp 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
5.88 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

GATX Corp Current Ratio Comparison

GATX Corp is currently under evaluation in current ratio category among related companies.

GATX Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in GATX Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GATX Corp will eventually generate negative long term returns. The profitability progress is the general direction of GATX Corp's change in net profit over the period of time. It can combine multiple indicators of GATX Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2021
Accumulated Other Comprehensive Income-137.5 M-148.4 M
Consolidated Income151.3 M197.6 M
Net Income151.3 M197.6 M
Net Income Common Stock151.3 M197.6 M
Net Loss Income from Discontinued Operations-1.1 M-1.2 M
Operating Income273.9 M301.9 M
Income Tax Expense37.3 M30.2 M
Net Income Per Employee79.2 K81.3 K
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 Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on GATX Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of GATX Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the GATX Corp's important profitability drivers and their relationship over time.

GATX Corp Profitability Trends

GATX Corp profitability trend refers to the progression of profit or loss within a business. An upward trend means that GATX Corp's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is GATX Corp's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

GATX Corp Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between GATX Corp different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards GATX Corp in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down GATX Corp's future profitability.

Use GATX Corp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if GATX Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GATX Corp will appreciate offsetting losses from the drop in the long position's value.

GATX Corp Pair Trading

GATX Corp Pair Trading Analysis

Correlation analysis and pair trading evaluation for GATX Corp and Air Lease Corp. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  

Use Investing Themes to Complement your GATX Corp position

In addition to having GATX Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Electronic Equipment Theme
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Please check Risk vs Return 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 ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

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To fully project GATX Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GATX Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include GATX Corp's income statement, its balance sheet, and the statement of cash flows.
Potential GATX Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although GATX Corp investors may work on each financial statement separately, they are all related. The changes in GATX Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on GATX Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.