GATX Corp.: A Mediocre Business With Trouble Ahead
- New car regulations and an oversupplied market will put pressure on top line growth and cash flow generation.
- Poor unit economics highlight the structural issues with an acquisition-based business model.
- Poor free cash flow generation and return on assets put pressure on a highly levered balance sheet.
- A possible rerate of the multiple implies a 60% downside to the current share price.