GATX Operating Margin vs. Return On Equity
| GATX Stock | USD 152.92 0.25 0.16% |
GATX Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.55 | 0.4588 |
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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.
GATX |
GATX's Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Trading Companies & Distributors space 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 0.688 | Dividend Share 2.29 | Earnings Share 7.49 | Revenue Per Share 42.976 | Quarterly Revenue Growth 0.126 |
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 Return On Equity vs. Operating Margin 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 one of the top stocks in operating margin category among its peers. It is rated below average in return on equity category among its peers reporting about 0.38 of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for GATX Corporation is roughly 2.66 . At this time, GATX's Operating Profit Margin is fairly stable compared to the past year. 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 Return On Equity vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
GATX |
| = | 0.32 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
GATX |
| = | 0.12 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
GATX Return On Equity Comparison
GATX is currently under evaluation in return on equity category among its peers.
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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -167.6 M | -176 M | |
| Operating Income | 1.1 B | 1.2 B | |
| Income Before Tax | 245.5 M | 147 M | |
| Total Other Income Expense Net | -870.1 M | -826.6 M | |
| Net Income | 259.2 M | 143.3 M | |
| Income Tax Expense | -13.7 M | -13 M | |
| Net Income Applicable To Common Shares | 179.3 M | 172.8 M | |
| Net Income From Continuing Ops | 241.6 M | 196.7 M | |
| Non Operating Income Net Other | 98.8 M | 106.9 M | |
| Interest Income | 216.5 M | 181.2 M | |
| Net Interest Income | -248.1 M | -260.5 M | |
| Change To Netincome | 4 M | 4.3 M | |
| Net Income Per Share | 7.26 | 7.62 | |
| Income Quality | 2.01 | 2.11 | |
| 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.
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 instruments. 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.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?
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Additional Tools for GATX Stock Analysis
When running GATX's price analysis, check to measure GATX's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GATX is operating at the current time. Most of GATX's value examination focuses on studying past and present price action to predict the probability of GATX's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GATX's price. Additionally, you may evaluate how the addition of GATX to your portfolios can decrease your overall portfolio volatility.