Zacks #1 Rank (strong buy)SeaCube Container Leasing Limited By: Tracey Ryniec ZACKS
July 12, 2011 BOX SeaCube Container Leasing Limited (BOX - Snapshot Report) is cashing in on the hot container leasing environment. This Zacks #1 Rank (strong buy) is super cheap, with a forward P/E of only 7.8.SeaCube is one of the largest container leasing companies in the world and offers long-term contracts to many of the big shipping lines. It owns or manages 553,130 units, equivalent to about 870,000 TEUs of containers and generator sets.
The containers consist of both refrigerated and dry containers. It has 7 offices worldwide.
Revenue Rose 10.9% in the First Quarter
On May 10, SeaCube reported its first quarter results and saw revenue jump to $36.8 million from $33.2 million in the first quarter of 2010.
Utilization is nearly as high as it can be- with an average of 98.5% in the quarter.
In 2010, there was a shortage of containers worldwide as demand picked up but containers were not delivered to companies during the recession. The containers have been rushing to catch up ever since.
SeaCube ordered more than $316 million in new equipment for delivery though June 2011. 85% of that is already committed to long-term leases.Big Dividend
SeaCube has been returning cash to shareholders. It will pay a 22 cents per share on July 15 to shareholders of record at the close of business on July 8.
This is the third quarter it has paid a dividend and the second quarter in a row it has paid 22 cents per share.
That is a dividend yield of 5.3%, which is larger than peer Textainer Group (TGH - Snapshot Report) at 4.1%.
Zacks Consensus Estimates Rise
Analysts have been bullish on SeaCube's prospects for 2011 and 2012 in the last 60 days.The 2011 Zacks Consensus Estimate has risen to $2.13 from $2.04 per share in that time.
Analysts are looking for 14% earnings growth in 2012, with the Zacks Consensus jumping to $2.43 from $2.21 per share in the last 2 months.
SeaCube is expected to report second quarter results on Aug 9 so we'll get a better read on the global economy, and the strength of the container business, then.
SeaCube Is Cheap
SeaCube has only been a public company since late 2010. In that time, however, shares have moved sharply higher.
Even with the rise in the share price, SeaCube still has attractive valuations.
In addition to a forward P/E of just 7.8, it also has a price-to-book ratio of 1.7. Normally, a P/B ratio under 3.0 would designate "value."
Additionally, the company has a return on equity (ROE) of 17.2%.With SeaCube at single digit valuations, its a cheap play on global growth. It's juicy 5.3% dividend yield isn't shabby either.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her at twitter.com/traceyryniec.
Read the full analyst report on BOX
Email
Print
Share
RSS
Rate Pos
Rate Neg
Comment
Free Stock Analysis From Zacks
Includes Zacks Long-Term Recommendation and Target Price
¦SEACUBE CONTAIN (BOX)
Add a Comment
Please login or register to post a comment
Loading Stories...
Related Content
RELATED ARTICLES VALUE ARCHIVE
Zacks Blog: Zacks Releases Four Powerful ''Buy'' Stocks: NetApp, Cardinal Health, Sun Hydraulics Corp and SeaCube Container Leasing Limited
(NTAP, CAH, SNHY, BOX) 07/12/11
Zacks Blog: Zacks.com featured expert Kevin Matras highlights: Acacia Research Corp., Oxford Industries, Inc., HCA Holdings, Inc., NXP Semiconductors N.V. and Seacube Container Leasing Ltd.
(ACTG, OXM, HCA, NXPI, BOX) 05/17/11
Best Stocks. Best Insight. Join Now...it's FREE!Over 700,000 investors look forward to the timely insights in our email newsletter; Zacks Profit from the Pros. In each daily issue you will find:¦Free Four Zacks #1 Rank "Strong Buy" Stocks
¦Free Timely Market Commentary
¦Free Wealth Management Tips
¦Free Profitable Strategy Screens
¦Free Bull and Bear Stocks of the Day
Zacks FREE Registration
Privacy PolicyFree Membership to Zacks.com Close This Panel X Related Tickers
Symbol Price Net % Change Zacks
Rank Zacks
Rec
BOX 14.20 $0.23 1.65 % PREMIUM PREMIUM
More Zacks ResourcesZack Rank Home - Discover all the Zacks Rank features plus free report: Zacks Rank Guide.
Value Investing Education - Learn how to become a more profitable investor.
Zacks Premium - Gain full access to the Zacks Rank with daily updates, email alerts, and more.
More Zacks Links
Zacks Rank Home
Zacks #1 Rank
Additions & Deletions
Performance
Aggressive Growth
Growth and Income
Momentum
Value
Top Performers
Zacks #5 Rank
About Zacks Rank
Market Summary Jul 28, 2011 14:34 pm ET
DJIA 12293.77 -8.78 -0.07%
NASD 2775.61 10.82 0.39%
S&P 500 1305.4 0.51 0.04%
Partner Center
