Wednesday, July 31, 2013

Why TAL International Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, freight container lessor TAL International (NYSE: TAL  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at TAL and see what CAPS investors are saying about the stock right now.

TAL facts

Headquarters (founded)

Purchase, N.Y. (1963)

Market Cap

$1.3 billion

Industry

Trading companies and distributors

Trailing-12-Month Revenue

$628.9 million

Management

Chairman/CEO Brian Sondey

CFO John Burns

Return on Equity (average, past 3 years)

21.7%

Cash/Debt

$68.3 million / $2.8 billion

Dividend Yield

6.9%

Competitors

COSCO Pacific

Seacastle

Seaco

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 162 members who have rated TAL believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those bulls, TMFChaodan, succinctly summed up the bull case for our community:

TAL International is a containers company. It has ~99% utilization rate, steady cash flow, and a business model that makes it easier to see into the future (lease structures range anywhere from 1-8 years). Their leases also ensure that they have limited liability for damages done to the containers.

Out of their base of 300 customers include all 25 of the world's largest shipping lines, including Maersk. Although there is significant customer concentration, this is the case for most companies in this business.

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery", outlines three companies that could take off when the global economy gains steam. Click here to read the full report!

No comments:

Post a Comment