GATX - GATX Corporation: Not A Great Ride To Take

2024-05-11 13:16:26 ET

Summary

• Rail transportation accounts for a significant portion of US freight movement, with 28% of ton miles transported by rail.
• GATX Corporation owns a large fleet of railcars, and management has done well to put it to work as evidenced by high utilization rates.
• The company has seen growth in revenue, profits, and cash flows in recent years, but shares are currently considered fairly valued.

Ever since I was a little kid, I loved railroads. I can't say exactly why. However, I do know that I love them as a means of transportation, particularly when it comes to goods. Although in the US, it may seem as though travel by rail is a small part of our everyday lives, it's actually a very big part. About 28% of all US freight movement , as measured by ton miles, are transported by rail. This number increases to 40% when talking about long distance freight volume. This dwarfs any other mode of transportation for goods....

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