GATX Corporation Common Stock (GATX)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business bought at a sensible price. GATX leases railcars and locomotives and provides maintenance, a business with long-lived assets and recurring rental revenue. A modest moat comes from scale and long-lived assets, but the return figures do not show a wide one. The filed numbers show momentum: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $580.1 million, net income $103.4 million, and diluted EPS $2.84. A year earlier, in fiscal Q2 2025, revenue was $430.5 million, net income $75.5 million, and diluted EPS $2.06. For FY2025, the period ended 2025-12-31, revenue was $1.7 billion, net income $333.3 million, and diluted EPS $9.12, up from FY2024 net income of $284.2 million and EPS of $7.78. FairStock's trailing free cash flow is $723.0 million, a 12.3% FCF yield, which is attractive. But the balance sheet gives me pause: debt-to-equity is 3.48 and the Altman Z-Score is 0.64. Return on capital employed is only 2.45%, so the business does not earn high returns on total capital. At the close on 2026-10-13, the price was $166.72. FairStock calculates a P/E of 16.51, P/B of 2.11, and a Graham Number of $133.35, leaving a negative 25.02% margin of safety. The Lynch category is STALWART, with 17.1% profit growth over five years and 7.6% revenue growth. I see a steady but leveraged lessor; the current price asks for continued execution without much cushion.

In plain English: GATX leases railcars and locomotives to companies that move chemicals, food, and other goods, and it also maintains those cars. The business is profitable and generates solid cash flow, but it uses a lot of borrowed money and earns low returns on its total capital. At the recent price, the shares look full or slightly expensive compared with the company's profits, accounting value, and a conservative asset-based estimate.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer