CAI International Inc. (CAI) is a global transportation finance and logistics company. Its container leasing segment owns and leases containers and earns fees for managing container portfolios on behalf of third-party investors.
The company reported its fourth-quarter results in February, where earnings beat the consensus estimate and was the highest ever recorded in its container lease business. CAI is now 100% focused on the container leasing business as it divested its rail business in December and its logistics sales business in August.
As of the most recent quarter, the company had $54 million in cash, compared with $183 million in short-term debt. Its profit margin is high for the industry at 8.6%. Earnings were up 225.9% year over year in the fourth quarter.
The stock is currently trading at a low valuation with a trailing P/E of 11.46 and a forward P/E of 4.87. CAI has shown positive long-term momentum leading to a Momentum Grade of B in our POWR Ratings service.
Take a look at the 1-year chart of CAI below with my added notations…
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