Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

GATX Corporation SR NT 2066 (GMTA)

Company Dividend Discount ModelIndustry: Sector:

Valuation Snapshot

Stable Growth$94.47 - $154.04$121.12
Multi-Stage$281.63 - $310.78$295.91
Blended Fair Value$208.52
Current Price$25.03
Upside733.07%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024
DPS0.00%0.00%2.362.252.142.071.980.000.000.000.000.00
YoY Growth--5.21%5.22%3.10%4.65%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--9.44%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)312.80
(-) Cash Dividends Paid (M)66.60
(=) Cash Retained (M)246.20
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)62.5639.1023.46
Cash Retained (M)246.20246.20246.20
(-) Cash Required (M)-62.56-39.10-23.46
(=) Excess Retained (M)183.64207.10222.74
(/) Shares Outstanding (M)35.8835.8835.88
(=) Excess Retained per Share5.125.776.21
LTM Dividend per Share1.861.861.86
(+) Excess Retained per Share5.125.776.21
(=) Adjusted Dividend6.987.638.07
WACC / Discount Rate5.24%5.24%5.24%
Growth Rate-2.00%-1.00%0.00%
Fair Value$94.47$121.12$154.04
Upside / Downside277.43%383.90%515.41%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)312.80309.67306.58303.51300.47297.47306.39
Payout Ratio21.29%35.03%48.77%62.52%76.26%90.00%92.50%
Projected Dividends (M)66.60108.49149.53189.74229.14267.72283.41

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.24%5.24%5.24%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)102.05103.09104.13
Year 2 PV (M)132.31135.02137.76
Year 3 PV (M)157.92162.81167.79
Year 4 PV (M)179.39186.83194.49
Year 5 PV (M)197.16207.43218.12
PV of Terminal Value (M)9,334.669,820.7310,326.85
Equity Value (M)10,103.4910,615.9111,149.15
Shares Outstanding (M)35.8835.8835.88
Fair Value$281.63$295.91$310.78
Upside / Downside1,025.17%1,082.24%1,141.62%

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