NYSE:CAI

Stock Analysis Report

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Executive Summary

CAI International, Inc. operates as transportation finance and logistics company in the United States, Switzerland, France, Korea, Singapore, rest of Asia, rest of Europe, and internationally. More Details


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.9%

CAI

-5.7%

US Trade Distributors

-5.3%

US Market


1 Year Return

9.5%

CAI

-0.9%

US Trade Distributors

10.4%

US Market

Return vs Industry: CAI exceeded the US Trade Distributors industry which returned 0.3% over the past year.

Return vs Market: CAI underperformed the US Market which returned 12% over the past year.


Shareholder returns

CAIIndustryMarket
7 Day-11.9%-5.7%-5.3%
30 Day-2.7%-1.9%-2.1%
90 Day53.1%2.2%1.7%
1 Year10.8%9.5%1.0%-0.9%12.9%10.4%
3 Year-25.8%-26.7%18.0%12.4%34.3%25.4%
5 Year120.1%117.6%50.4%39.4%73.7%54.3%

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?

8.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CAI ($26.35) is trading above our estimate of fair value ($9.95)

Significantly Below Fair Value: CAI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CAI is good value based on its PE Ratio (8.7x) compared to the US Trade Distributors industry average (17x).

PE vs Market: CAI is good value based on its PE Ratio (8.7x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: CAI is good value based on its PEG Ratio (0.3x)


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 (1.4x).


Next Steps

Future Growth

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

34.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAI's forecast earnings growth (34% per year) is above the savings rate (2.2%).

Earnings vs Market: CAI's earnings (34% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: CAI's revenue is expected to decline over the next 3 years (-1.8% per year).

High Growth Revenue: CAI's revenue is forecast to decline over the next 3 years (-1.8% 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 (7.7%).


Next Steps

Past Performance

How has CAI International performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAI has a large one-off gain of $13.2M impacting its September 30 2020 financial results.

Growing Profit Margin: CAI's current net profit margins (13.2%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: CAI's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: CAI's earnings growth over the past year (2.8%) is below its 5-year average (17.4% per year).

Earnings vs Industry: CAI earnings growth over the past year (2.8%) exceeded the Trade Distributors industry -6.9%.


Return on Equity

High ROE: CAI's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is CAI International's financial position?


Financial Position Analysis

Short Term Liabilities: CAI's short term assets ($515.8M) do not cover its short term liabilities ($628.8M).

Long Term Liabilities: CAI's short term assets ($515.8M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: CAI's debt to equity ratio (315%) is considered high.

Reducing Debt: CAI's debt to equity ratio has increased from 296.9% to 315% over the past 5 years.

Debt Coverage: CAI's debt is not well covered by operating cash flow (12%).

Interest Coverage: CAI's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

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

3.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CAI's dividend (3.8%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: CAI's dividend (3.8%) is low compared to the top 25% of dividend payers in the US market (4.78%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether CAI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CAI's dividend payments are increasing as they only just started paying a dividend.


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: CAI's dividends in 3 years are forecast to be well covered by earnings (20.4% payout ratio).


Next Steps

Management

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

8.4yrs

Average management tenure


CEO

Tim Page (67 yo)

0.25

Tenure

US$758,480

Compensation

Mr. Timothy B. Page, also known as Tim, serves as Executive Vice President, Interim President and Chief Executive Officer of CAI International, Inc. since June 12, 2020 and serves as Director since June 14 ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD758.48K) is below average for companies of similar size in the US market ($USD1.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Page
Executive VP0.25yrUS$758.48k0.014%
$ 62.6k
Camille Cutino
Vice President of Operations & Human Resources9yrsUS$430.56k0.051%
$ 233.8k
Daniel Hallahan
Senior Vice President of Global Marketing10.58yrsUS$642.37k0.15%
$ 672.8k
Steven Garcia
VP of Legal Affairs & Corporate Secretary7.75yrsno datano data
David Morris
VP of Finance & Corporate Controller9.42yrsno datano data
James Magee
President of Rail3.25yrsno datano data

8.4yrs

Average Tenure

61yo

Average Age

Experienced Management: CAI's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Page
Executive VP0.25yrUS$758.48k0.014%
$ 62.6k
David Remington
Independent Chairman of the Board2.75yrsUS$374.99k0.15%
$ 678.4k
John Williford
Independent Director2.42yrsUS$266.99k0.12%
$ 567.2k
Gary Sawka
Independent Director9.25yrsUS$267.49k0.14%
$ 639.4k
Andrew Ogawa
Independent Director2.42yrsUS$253.01k2.15%
$ 9.9m
Kathryn Jackson
Independent Director2.58yrsUS$262.49k0.13%
$ 585.0k

2.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: CAI's board of directors are not considered experienced ( 2.5 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: Insufficient data to determine if insiders have bought more shares than they have sold 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$462.596m
  • Shares outstanding: 17.30m
  • 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, Switzerland, France, Korea, Singapore, rest of Asia, rest of Europe, and internationally. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:36
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.