CAI International Inc. - value (Zacks)

You want to know how the global economy is doing? Examine the trade. CAI international, Inc. (CAP - report snapshot) is trading at just 12.2 x estimates before even container utilization rates continue at a historically high level.

CAI international has a direct link to the world of international trade. It manages and leases of intermodal containers in 10 countries around the world. The company has a fleet of 799,500 TEU.CAI international surprised by 11.4% in the third quarterNovember 2, CAI international results for the third quarter and surprised on the consensus of Zacks by 4 cents. Earnings per share was 39 cents to 35 cents.It consensus was the third surprise in the last 4 quarters. There is only a miss estimates since the dark days of 2008. Revenues increased 27.4% to $ 15.7 million in the year 20.1 million ago quarter.Total third quarter revenue 2010 was 20.1 million, compared to 15.7 million for the third quarter of 2009. Income rental jumped 23% during the quarter quarter. Use was close to 100% to 98.1%, up to 95.1% in the second quarter of 2010. Peer TAL International (TAL - instant report) has also seen that a 98.1% in the third quarter.CAI utilization rate also saw continued strength in the fourth quarter as a month in the neighbourhood, at the end of October, utilization rates continued to be 98.1%. Once again, it is similar to what CAL also said in the fourth quarter.Containers are hotAs international TAL CAI is adding of new containers to meet demand. It took delivery of 40,500 TEUS in the third quarter and in July 2010 23 000 EVP of older units purchased. The company has also transferred EVP approximately 25,500 older containers 2 Asia.On investor funds on 6 December, the company announced that he was a public offer of 2.7 million shares of stock for a total value of $ 30 million. The product is going to fund capital and other general purposes, including the more investment in containers.Outlook to 2011 remains strongService industry research predicts international trade would increase by 10% in 2011. Given the already high rate of use, combined with the growth of trade, ILA expects this container application continue to be strong in 2011.CAI expects fourth quarter revenues continue to grow in the third quarter.Zacks Consensus budget rise in 2010 and 2011Analysts are bullish on months of 2010 and opportunities to enter the 2010 Zacks Consensus 2011.The jumped $4 cents to 1.43 per share on the last month.Analysts if expected gains 80.6% growth in CAI 2010.They expect the same for 2011, with Zacks Consensus 2011 climbing to $1.93 $1.88 for the month. This would be the 35.1% earnings growth.Value shares of the CAIEven with the stock in suddenly off the coast of its bottom of recession shares have always attractive valuations.Along with his report value P/E, CAI has a price-to-book only 1.9, which is well worth stock.It Beach also has a beautiful return on equity (re) of 13.9%, well above its peers to 6.1%.Unlike peers TAL, however, CAI does not pay any dividend.Tracey Ryniec is Zacks.com stock strategist. It is also the editor in charge of the Zacks value Trader market-beating service. You can follow his twitter.com/traceyryniec.Free Zacks Stock includes analysis of Zacks recommendation long-term and target PriceRead/post comments (0) | Recommended article (0) posting of comments...