NYSE:CAI

Stock Analysis Report

Executive Summary

CAI International, Inc. operates as transportation finance and logistics company in the United States and internationally.

Rewards

PE ratio (9.8x) is below the US market (18.4x)

Earnings are forecast to grow 20.98% per year

Risk Analysis

Interest payments are not well covered by earnings

Profit margins (11.6%) are lower than last year (24.6%)



Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has CAI International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CAI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

CAI

2.3%

US Trade Distributors

0.9%

US Market


1 Year Return

11.0%

CAI

9.6%

US Trade Distributors

20.0%

US Market

Return vs Industry: CAI exceeded the US Trade Distributors industry which returned 9.9% over the past year.

Return vs Market: CAI underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CAIIndustryMarket
7 Day2.0%2.3%0.9%
30 Day-0.4%-2.2%1.4%
90 Day22.7%1.5%8.8%
1 Year11.0%11.0%11.6%9.6%22.5%20.0%
3 Year68.3%68.3%20.4%14.8%49.9%40.3%
5 Year17.9%17.9%43.8%33.0%73.2%54.1%

Price Volatility Vs. Market

How volatile is CAI International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CAI International undervalued compared to its fair value and its price relative to the market?

9.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CAI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CAI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CAI is good value based on its PE Ratio (9.8x) compared to the Trade Distributors industry average (16.6x).

PE vs Market: CAI is good value based on its PE Ratio (9.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CAI is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CAI is good value based on its PB Ratio (0.8x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is CAI International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAI's forecast earnings growth (21% per year) is above the savings rate (1.7%).

Earnings vs Market: CAI's earnings (21% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CAI's revenue (1.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CAI's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAI's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has CAI International performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAI has high quality earnings.

Growing Profit Margin: CAI's current net profit margins (11.6%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: CAI's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: CAI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CAI had negative earnings growth (-43.8%) over the past year, making it difficult to compare to the Trade Distributors industry average (3.5%).


Return on Equity

High ROE: CAI's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CAI International's financial position?


Financial Position Analysis

Short Term Liabilities: CAI's short term assets ($499.6M) exceed its short term liabilities ($406.7M).

Long Term Liabilities: CAI's short term assets ($499.6M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: CAI's debt to equity ratio (310.4%) is considered high.

Reducing Debt: CAI's debt to equity ratio has increased from 289.7% to 310.4% over the past 5 years.

Debt Coverage: CAI's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: CAI's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: CAI has a low level of unsold assets or inventory.

Debt Coverage by Assets: CAI's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is CAI International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CAI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CAI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CAI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CAI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CAI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Victor Garcia (51yo)

8.7yrs

Tenure

US$2,323,297

Compensation

Mr. Victor M. Garcia has been the President and Chief Executive Officer at CAI International Inc. since June 3, 2011. Mr. Garcia serves as the Chief Financial Officer at Container Applications Limited. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Victor's total compensation ($USD2.32M) is above average for companies of similar size in the US market ($USD1.68M).

Compensation vs Earnings: Victor's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Victor Garcia
President8.7yrsUS$2.32m0.30% $1.5m
Timothy Page
Chief Financial Officer8.8yrsUS$941.74k0.0070% $34.7k
Camille Cutino
Vice President of Operations & Human Resources8.3yrsUS$551.07k0.024% $117.4k
Daniel Hallahan
Senior Vice President of Global Marketing10yrsUS$879.11k0.13% $660.2k
Steven Garcia
Vice President of Legal Affairs7.1yrsno datano data
Jason Miller
Senior Vice President of Logistics Sales & Marketing - CAI Logistics North America2.4yrsno datano data
David Morris
VP of Finance & Corporate Controller8.8yrsno datano data
James Magee
President of Rail2.7yrsno datano data
Janet Papworth
President of CAI Logistics - North America2.4yrsno datano data

8.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: CAI's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Victor Garcia
President8.7yrsUS$2.32m0.30% $1.5m
David Remington
Chairman of the Board2.1yrsUS$309.97k0.095% $470.7k
John Williford
Independent Director1.8yrsUS$235.41k0.080% $394.3k
Gary Sawka
Independent Director8.7yrsUS$246.83k0.078% $383.8k
Andrew Ogawa
Independent Director1.8yrsUS$219.55k0.62% $3.0m
Kathryn Jackson
Independent Director2yrsUS$265.40k0.084% $413.5k

2.0yrs

Average Tenure

63yo

Average Age

Experienced Board: CAI's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CAI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CAI International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CAI International, Inc.
  • Ticker: CAI
  • Exchange: NYSE
  • Founded: 1989
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$493.919m
  • Shares outstanding: 17.14m
  • Website: https://www.capps.com

Number of Employees


Location

  • CAI International, Inc.
  • Steuart Tower
  • 1 Market Plaza
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAINYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2007
DW4DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2007
CAI.PRANYSE (New York Stock Exchange)8.50% RED PFD AUSUSDMar 2018
CAI.PRBNYSE (New York Stock Exchange)8.5% RED PFD BUSUSDAug 2018

Biography

CAI International, Inc. operates as transportation finance and logistics company in the United States and internationally. The company operates through three segments: Container Leasing, Rail Leasing, and Logistics. It leases, re-leases, and disposes equipment; and contracts for the repair, repositioning, and storage of equipment. The company leases its container equipment to lessees under long-term, short-term, and finance leases. It also sells containers; and manages equipment for to third-party investors, as well as sells used containers. In addition, the company leases railcars consisting of box cars for paper and forest products; covered hoppers for grain, cement, sand, plastic pallets, and other industrial products; general purpose tank cars that are used to transport food-grade, and other liquid and gaseous commodities; gondolas for coal and steel; and general service flat cars. Further, it offers domestic and international logistics services, including intermodal, truck brokerage, port drayage, warehousing, international ocean freight, and freight forwarding, as well as the arrangement and coordination of international air freight services and customs brokerage; international export and import services for full container loads, less than container loads, perishable cargo, project cargo, and airfreight; and transportation management services and technology solutions, including shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, and Web-based shipment visibility. As of December 31, 2018, the company had a container fleet comprised 1,568,707 cost equivalent units; and an owned fleet of 7,279 railcars in North America. The company was formerly known as Container Applications International, Inc. and changed its name to CAI International, Inc. in February 2007. CAI International, Inc. was founded in 1989 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 00:18
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.