Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railcar leasing operator GATX (NYSE: GMT ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at GATX's business and see what CAPS investors are saying about the stock right now.
GATX facts
| Headquarters (Founded) | Chicago (1898) |
| Market Cap | $2.01 billion |
| Industry | Trading companies and distributors |
| Trailing-12-Month Revenue | $1.23 billion |
| Management | Chairman/CEO Brian Kenney CFO Robert Lyons |
| Return on Equity (Average, Past 3 Years) | 7.9% |
| Cash/Debt | $115 million / $3.44 billion |
| Dividend Yield | 2.7% |
| Competitors | American Railcar Industries General Electric |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 13% of the 69 members who have rated GATX believe the stock will underperform the S&P 500 going forward.
Just last month, one of those bears, BuffettJunior1, summed up the underperform argument:
Why in the world does this company have a $2.1 billion market cap? The company has $3.3 billion in long-term debt and it's been losing hundreds of millions in free cash flow every year. This is another one of those stocks that investors get fooled into investing in. Based on the accrual method of accounting this company looks very profitable. However, in the real business world net income is meaningless, its cash that matters and its cash that keeps the doors open. Net income is just an accounting number that no intelligent investor should every pay attention to. This is just an awful business and I see no reason why it shouldn't underperform significantly over the next five years.
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