NYSE:SSW

Stock Analysis Report

Executive Summary

Seaspan Corporation operates as an independent charter owner and manager of containerships in Hong Kong.

Snowflake

Fundamentals

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

7.3%

SSW

3.3%

US Shipping

3.4%

US Market


1 Year Return

33.7%

SSW

-4.6%

US Shipping

5.4%

US Market

Return vs Industry: SSW exceeded the US Shipping industry which returned -4.6% over the past year.

Return vs Market: SSW exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

SSWIndustryMarket
7 Day7.3%3.3%3.4%
30 Day-1.8%-2.5%-1.0%
90 Day10.8%4.0%-0.4%
1 Year40.9%33.7%-2.9%-4.6%7.7%5.4%
3 Year6.1%-12.2%21.3%13.1%46.2%36.8%
5 Year-18.0%-43.3%-59.7%-62.7%65.6%47.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SSW ($11.24) is trading below our estimate of fair value ($23.36)

Significantly Undervalued: SSW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SSW is good value based on its PE Ratio (5.5x) compared to the Shipping industry average (25.4x).

PE vs Market: SSW is good value based on its PE Ratio (5.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SSW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SSW is overvalued based on its PB Ratio (0.8x) compared to the US Shipping industry average (0.6x).


Next Steps

Future Growth

How is Seaspan forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-40.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSW's earnings are forecast to decline over the next 3 years (-40.1% per year).

Earnings vs Market: SSW's earnings are forecast to decline over the next 3 years (-40.1% per year).

High Growth Earnings: SSW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SSW's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: SSW's revenue is forecast to decline over the next 3 years (-0.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SSW's Return on Equity is forecast to be low in 3 years time (4.8%).


Next Steps

Past Performance

How has Seaspan performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SSW's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: SSW's earnings growth over the past year (128.6%) exceeds its 5-year average (24.4% per year).

Earnings vs Industry: SSW earnings growth over the past year (128.6%) exceeded the Shipping industry -62.3%.


Return on Equity

High ROE: SSW's Return on Equity (14.4%) is considered low.


Return on Assets

ROA vs Industry: SSW has a higher Return on Assets than the Shipping industry average last year.


Return on Capital Employed

ROCE Improving: SSW has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Seaspan's financial position?


Financial Position Analysis

Short Term Liabilities: SSW's short term assets ($680.6M) do not cover its short term liabilities ($794.4M)

Long Term Liabilities: SSW's short term assets (680.6M) do not cover its long term liabilities (4.5B)


Debt to Equity History and Analysis

Debt Level: SSW's debt to equity ratio (97.7%) is considered high

Reducing Debt: SSW's debt to equity ratio has reduced from 219% to 97.7% over the past 5 years.

Debt Coverage: SSW's debt is well covered by operating cash flow (24.5%).

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


Balance Sheet

Inventory Level: SSW has a high level of physical assets or inventory.

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


Next Steps

Dividend

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

4.45%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.5%markettop25%3.8%industryaverage4.2%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SSW's dividend (4.45%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SSW's dividend (4.45%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: SSW's dividend payments have been volatile in the past 10 years.

Growing Dividend: SSW's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.3%), SSW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SSW's dividends in 3 years are forecast to be covered by earnings (53% payout ratio).


Next Steps

Management

What is the CEO of Seaspan's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Bing Ruan Chen (52yo)

1.8yrs

Tenure

0

Mr. Bing Ruan Chen, C.P.A, has been President, Chief Executive Officer and Director of Seaspan Corporation since January 8, 2018. Mr. Chen served as the Chief Executive Officer of BNP Paribas (China) Limi ...


Management Age and Tenure

1.4yrs

Average Tenure

48yo

Average Age

Experienced Management: SSW's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: SSW's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Peter Curtis (60yo)

    Executive VP and Chief Commercial & Technical Officer

    • Tenure: 2.3yrs
  • Tina Lai (42yo)

    Chief Human Resources Officer

    • Tenure: 1.3yrs
  • Michael Sieffert

    Director of Corporate Finance

    • Tenure: 0yrs
  • Gabrielle Smith

    Director of Human Resources

    • Tenure: 0yrs
  • Bing Ruan Chen (52yo)

    President

    • Tenure: 1.8yrs
  • Ryan Courson (29yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
  • Anthony Gerstein

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Torsten Holst Pedersen (48yo)

    Executive Vice President of Ship Management

    • Tenure: 1yrs

Board Members

  • Dave Sokol (63yo)

    Chairman

    • Tenure: 2.3yrs
  • Larry Simkins (57yo)

    Director

    • Tenure: 2.5yrs
  • Lawrence C. Chin (42yo)

    Director

    • Tenure: 1.5yrs
  • Nick Pitts-Tucker (67yo)

    Director

    • Tenure: 9.5yrs
  • John C. Hsu (55yo)

    Director

    • Tenure: 11.5yrs
  • Bing Ruan Chen (52yo)

    President

    • Tenure: 1.8yrs
  • Stephen Wallace (62yo)

    Director

    • Tenure: 1.5yrs

Company Information

Seaspan Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seaspan Corporation
  • Ticker: SSW
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: US$2.419b
  • Shares outstanding: 215.23m
  • Website: https://www.seaspancorp.com

Number of Employees


Location

  • Seaspan Corporation
  • Bupa Centre
  • 2nd Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSWNYSE (New York Stock Exchange)YesClass A Common SharesUSUSDAug 2005
S8VDB (Deutsche Boerse AG)YesClass A Common SharesDEEURAug 2005
0EALLSE (London Stock Exchange)YesClass A Common SharesGBUSDAug 2005
SSW.PRDNYSE (New York Stock Exchange)PERP PFD-DUSUSDDec 2012
SSW.PRENYSE (New York Stock Exchange)CUM RD PRP PFD EUSUSDFeb 2014
SSW.PRGNYSE (New York Stock Exchange)PERP PFD SER GUSUSDJun 2016
SSW.PRHNYSE (New York Stock Exchange)PFD CM RE SE HUSUSDAug 2016
SSW.PRINYSE (New York Stock Exchange)PERP PFD SER IUSUSDSep 2018

Biography

Seaspan Corporation operates as an independent charter owner and manager of containerships in Hong Kong. The company charters its containerships under long-term and fixed-rate time charters to various cont ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:53
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.