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GATX Corporation SR NT 2066 (GMTA)

Company Dividend Discount ModelIndustry: Sector:

Valuation Snapshot

Stable Growth$61.70 - $88.82$74.93
Multi-Stage$99.03 - $108.83$103.83
Blended Fair Value$89.38
Current Price$25.03
Upside257.10%
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 Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$61.70$74.93$88.82
Upside / Downside146.48%199.36%254.87%

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 Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)98.4599.46100.46
Year 2 PV (M)123.15125.67128.23
Year 3 PV (M)141.81146.19150.67
Year 4 PV (M)155.41161.85168.49
Year 5 PV (M)164.78173.36182.30
PV of Terminal Value (M)2,869.113,018.513,174.07
Equity Value (M)3,552.713,725.053,904.22
Shares Outstanding (M)35.8835.8835.88
Fair Value$99.03$103.83$108.83
Upside / Downside295.65%314.84%334.79%

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