Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Seaspan Corporation (SSW) Destined for Greatness?

Page 1 of 2

Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does nautical multitasker Seaspan Corporation (NYSE:SSW) fit the bill? Let’s take a look at what its recent results tell us about its potential for future gains.

Seaspan Corporation (NYSE:SSW)What we’re looking for
The graphs you’re about to see tell Seaspan Corporation (NYSE:SSW)’s story, and we’ll be grading the quality of that story in several ways:

Growth: Are profits, margins, and free cash flow all increasing?

Valuation: Is share price growing in line with earnings per share?

Opportunities: Is return on equity increasing while debt to equity declines?

Dividends: Are dividends consistently growing in a sustainable way?

What the numbers tell you
Now, let’s take a look at Seaspan Corporation (NYSE:SSW)’s key statistics:

SSW Total Return Price Chart

SSW Total Return Price data by YCharts

Passing Criteria 3-Year* Change Grade
Revenue growth > 30% 104.2% Pass
Improving profit margin 184.9% Pass
Free cash flow growth > Net income growth 125.4% vs. 273.4% Fail
Improving EPS 231% Pass
Stock growth (+ 15%) < EPS growth 177.3% vs. 231% Pass

Source: YCharts. * Period begins at end of Q2 2010.

SSW Return on Equity Chart

SSW Return on Equity data by YCharts

Passing Criteria 3-Year* Change Grade
Improving return on equity 240.8% Pass
Declining debt to equity (7.7%) Pass
Dividend growth > 25% 150% Pass
Free cash flow payout ratio < 50% 38.3% Pass

Source: YCharts. * Period begins at end of Q2 2010.

How we got here and where we’re going
Seaspan Corporation (NYSE:SSW) comes through with flying colors, missing out on a perfect score only because the company’s free cash flow, which has been increasing rapidly, calculates out to a lower percentage increase than its net income despite rising from a much lower starting point. Technicalities aside, this is certainly a noteworthy performance — but can Seaspan keep up its progress? Let’s dig a little deeper to find out.

Seaspan Corporation (NYSE:SSW) competitors STX Pan Ocean, TMT Group, and Excel Maritime Carriers have all filed for bankruptcy in recent months, which highlights both the precariousness of the industry and the opportunity for well-managed shippers to seize greater market share.

According to the International Monetary Fund, Seaspan’s three key markets, the U.S., Europe and China, are expected to see 2.7%, 2.8% and 7.7% GDP growth in 2014, respectively, which should certainly boost the global container trade market. Since 90% of global trade volumes were conveyed only via sea routes, Seaspan Corporation (NYSE:SSW) should be poised for continued growth.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!