NAV
Navistar International Corp
Industrial/Transportation
07/16/2013
Presented
| Date | 07/10/2013 |
| Price | $28.74 |
| Market Cap | $2.31B |
| Ent Value | $6.02B |
| P/E Ratio | N/A |
| Book Value | N/A |
| Div Yield | N/A |
| Shares O/S | 80.40M |
| Ave Daily Vol | 1,460,000 |
| Short Int | 11.89% |
Current
| Price | $44.50 |
| Market Cap | $4.41B |
| Navistar International Corporation, through its subsidiaries, manufactures and sells commercial and military trucks, buses, diesel engines, and recreational vehicles, as well as provides service parts for trucks and trailers worldwide. The company operates in four segments: Truck, Engine, Parts, and Financial Services. The Truck segment manufactures and distributes trucks and buses for the common carrier, private carrier, government, leasing, construction, energy/petroleum, military vehicles, and student and commercial transportation markets under the International and IC brands; assembles components; and produces sheet metal components, including truck cabs. This segment markets its products through its independent dealer network, and distribution and service network retail outlets comprising 784 in the United States and Canada, 86 in Mexico, and 292 internationally, as well as markets reconditioned used trucks to owner-operators and fleet buyers through its network of used truck centers. The Engine segment designs, manufactures, and sells diesel engines under the MaxxForce brand for use in the medium trucks, heavy trucks, and military vehicles, as well as for its IC branded school buses and other applications. The Parts segment provides customers with products required to support the company’s brands, as well as offers other truck, trailer, and engine service parts. The Financial Services segment provides and manages retail, wholesale, and lease financing services for products sold by the Truck and Parts segments and their dealers. It also operates as a private-label designer and manufacturer of diesel engines for the pickup truck, van, and sport utility vehicle markets. Navistar International Corporation was founded in 1902 and is headquartered in Lisle, Illinois. |
Highlights
The presenter asked the group to hear him out before laughing him out of the room, and then proceeded with an overview of his bullish thesis on Navistar (NAV). He said NAV’s restructuring is in the early innings, the management team seems to be building credibility, and the truck cycle could create a tailwind. The stock price has pulled back ~$10 from its recent highs and seems to have caught a bid in the high $20s; he sees the potential for a recovery to at least the $35 level near term, and could potentially be an acquisition target one-to-two years from now as a larger OEM looking for exposure to the US truck market could easily afford to purchase the company.
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