Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, containership operator Seaspan (NYSE: SSW ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Seaspan's business and see what CAPS investors are saying about the stock right now.
Seaspan facts
| Headquarters (Founded) |
Majuro, Marshall Islands (2005) |
| Market Cap |
$968.3 million |
| Industry |
Shipping |
| Trailing-12-Month Revenue |
$484 million |
| Management |
CEO Gerry Wang (since 2005)
CFO Sai Chu (since 2007) |
| Return on Equity (Average, Past 3 Years) |
(6.4%) |
| Cash/Debt |
$152.8 million / $2.8 billion |
| Dividend Yield |
5.5% |
| Competitors |
Costamare (NYSE: CMRE )
Danaos (NYSE: DAC ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 850 members who have rated Seaspan believe the stock will outperform the S&P 500 going forward. These bulls include All-Star investorpoet2, who is ranked in the top 10% of our community, and thity2hop.
In early July, investorpoet2 tapped Seaspan as a solid income opportunity: "A 5.0% dividend as of today. The company has high fleet utilization and more ships coming online, which should lead to increasing cash flow, a growing dividend, and a much higher price."
Over the next five years, in fact, Seaspan is expected to grow its bottom line at a brisk rate of 20% annually. That's faster than industry peers like Costamare (5%), Danaos (13%), and DryShips (Nasdaq: DRYS ) (10%).
CAPS member thity2hop elaborates on the Seaspan bull case:
Increasing number of long-term fixed rate ship leases to diversified group of well capitalized shipping companies will increase earnings and dividends with moderate risk. Dividend should equal 20-25% of available cash flow (after preferred div) and increase from $0.75 to well over a $1 in the next 12 months. Result is a high yielding growth stock with substantial built in cash flow growth as new ships come on-line.
What do you think about Seaspan, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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