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Deep sea foreign transportation of freight company · 1T · FY ends Dec · Revenue $1.04B · 47.85% margin
$117.53
$0.12 (-0.10%)
Price from 43 days ago
47.85% operating margin is above average. ROIC at 8.65%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue growth slowed to 2.8%, essentially flat. Margins also contracted 5.5pp. This is a business that needs a catalyst.
ROIC dropped from 11.27% to 8.65%, capital efficiency is deteriorating. Operating margin contracted 5.5pp YoY, cost discipline may be slipping.
4.4x earnings. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.04B
▲ +2.8% YoY
Net Income (TTM)
$495M
▼ -2.1% YoY
Op. Margin
47.85%
▼ -5.5pp YoY
ROIC
8.65%
▼ -2.6pp YoY
Cash Flow & Balance Sheet
FCF
N/A
Op. Cash Flow (TTM)
$645M
▲ +3.7% YoY
Net Debt
-$2M
Net Cash Position
Cash & Equiv.
$1.16B
5Y CAGR: +17.7%
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