GATX Corporation Common Stock (GATX)

FairStock Score: 43/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 11.0% above cost of capital

Concerns

• Trades significantly above Graham Number ($126) with negative 58% margin of safety—limited downside protection
• High leverage at 3.50x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.9 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

GATX Corporation Common Stock is a small-cap industrials company valued at $7.1 billion. The business generates $1.7 billion in annual revenue with a 5.6% net margin. From a quality standpoint, GATX shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.9 warrants caution. On valuation, the stock is reasonably priced at 21.8x earnings, with trades above its Graham Number with a negative 58% margin. Growth dynamics show revenue growing at 8.6% and profit growth of 26.8%. The 1.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 43/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 3.5x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer