TRTN

Triton International Ltd

Industrial/Transportation, Finance/Real Estate


Presented:10/17/2018
Price:$31.76
Cap:$2.57B
Current Price:$79.55
Cap:$8.05B

Presented

Date10/17/2018
Price$31.76
Market Cap$2.57B
Ent Value$9.70B
P/E Ratio5.65x
Book Value$27.24
Div Yield6.55%
Shares O/S80.86M
Ave Daily Vol519,590
Short Int2.56%

Current

Price$79.55
Market Cap$8.05B
Triton International Ltd. engages in the operation and management of fleet of intermodal marine dry, refrigerated, and cargo containers. It operates through the Equipment Leasing and Equipment Trading segments. The Equipment Leasing segment involves in owning, leasing, and disposing containers and chassis from lease fleet, as well as managing containers owned by third parties. The Equipment Trading segment focuses on the purchase containers from shipping line customers, and other sellers of containers, and resells containers to container retailers and users of containers for storage or one-way shipment. The company was founded on September 29, 2015 and is headquartered in Hamilton, Bermuda.

Publicly traded companies mentioned herein: CAI International Inc (CAI), DHT Holdings Inc (DHT), Euronav NV (EURN; EURN BB), AP Moller - Maersk A/S (MAERSKB DC), Textainer Group Holdings Ltd (TGH), Triton International Ltd (TRTN)

Highlights

Container leasing companies appear to be vulnerable to cyclical risk at this time. The presenter is short a few, namely Triton (TRTN), CAI (CAI), and Textainer (TGH). He believes that prices (lease rates) will fall as container supply growth outpaces estimated demand this year. Because containers are a commodity item, prices can drop quickly as a result of seemingly marginal oversupply (e.g., supply growth of 6% - 7% vs. demand at 2x GDP, or 5% - 6%). Additionally, the International Maritime Organization’s (IMO’s) 2020 sulfur regulations provide incremental uncertainty to the story via pressure on global shipping companies to clamp down on costs. If his assessment of the setup is accurate, these container leasing companies’ stocks could see meaningful declines.

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