GATX Profitability Analysis

GATX Stock  USD 129.88  1.52  1.16%   
Based on the key profitability measurements obtained from GATX's financial statements, GATX's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess GATX's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-09-30
Previous Quarter
52.5 M
Current Value
66 M
Quarterly Volatility
40.2 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, GATX's Price To Sales Ratio is fairly stable compared to the past year. Price Sales Ratio is likely to rise to 3.19 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop 0.22 in 2024. At this time, GATX's Operating Income is fairly stable compared to the past year. Non Operating Income Net Other is likely to rise to about 106.9 M in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (176 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.550.4588
Fairly Up
Very volatile
For GATX profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GATX to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GATX Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GATX's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GATX Corporation over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
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.

GATX Cash Per Share vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining GATX's current stock value. Our valuation model uses many indicators to compare GATX value to that of its competitors to determine the firm's financial worth.
GATX Corporation is rated # 5 in net income category among related companies. It is one of the top stocks in cash per share category among related companies . The ratio of Net Income to Cash Per Share for GATX Corporation is about  15,310,100 . At this time, GATX's Net Income is fairly stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value GATX by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for GATX's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the GATX's earnings, one of the primary drivers of an investment's value.

GATX Cash Per Share vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

GATX

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
259.2 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.

GATX

Cash Per Share

 = 

Total Cash

Average Shares

 = 
16.93 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.

GATX Cash Per Share Comparison

GATX is currently under evaluation in cash per share category among related companies.

GATX Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in GATX, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GATX will eventually generate negative long term returns. The profitability progress is the general direction of GATX's change in net profit over the period of time. It can combine multiple indicators of GATX, 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 2024
Accumulated Other Comprehensive Income-167.6 M-176 M
Operating Income1.1 B1.2 B
Income Before Tax245.5 M147 M
Total Other Income Expense Net-870.1 M-826.6 M
Net Income259.2 M143.3 M
Income Tax Expense-13.7 M-13 M
Net Income Applicable To Common Shares179.3 M172.8 M
Net Income From Continuing Ops241.6 M196.7 M
Non Operating Income Net Other98.8 M106.9 M
Interest Income216.5 M181.2 M
Net Interest Income-248.1 M-260.5 M
Change To NetincomeM4.3 M
Net Income Per E B T 1.06  1.71 

GATX Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on GATX. 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 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's important profitability drivers and their relationship over time.

GATX Profitability Trends

GATX profitability trend refers to the progression of profit or loss within a business. An upward trend means that GATX'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'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 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 different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards GATX 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's future profitability.

Use GATX 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 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 will appreciate offsetting losses from the drop in the long position's value.

GATX Pair Trading

GATX Corporation Pair Trading Analysis

The ability to find closely correlated positions to GATX could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GATX when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back GATX - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling GATX Corporation to buy it.
The correlation of GATX is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as GATX moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GATX moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for GATX can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your GATX position

In addition to having GATX 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.

Did You Try This Idea?

Run Housewares Thematic Idea Now

Housewares
Housewares Theme
Companies making housewares accessories and providing houseware services. The Housewares theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Housewares Theme or any other thematic opportunities.
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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 Risk vs Return Analysis.
You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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To fully project GATX's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GATX 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's income statement, its balance sheet, and the statement of cash flows.
Potential GATX investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although GATX investors may work on each financial statement separately, they are all related. The changes in GATX's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on GATX'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.