GATX Corp Stock Discussion

GATX's high P/E ratio may be due to investor optimism about its market performance. However, with average growth expectations, the high P/E ratio could decline if growth outlook doesn't improve, potentially disappointing investors.

Even though GATX is reinvesting in its own business, the continuous diminution in returns is a concern. Given the ongoing trends, the prospect of it being a multi-bagger from here is not very high.

Although GATX's low ROE isn't ideal compared to its industry, improved returns may still be possible through financial leverage. Yet, the company's high debt to equity ratio combined with a lower ROE, indicates a potential risk. Top-class companies typically have high ROE and low debt.