TransContainer (TRC) is weathering the sanctions and oil price-led economic slowdown in Russia well. While current earnings are cyclically depressed, cash flow generation remains positive and a payout ratio of 25% is intact. Our forecast five-year EBITDA CAGR of 11% is driven by end-market growth, and by TRC capturing a bigger share of this with its higher-margin integrated freight forwarding business. In the 10 years since its foundation, management has invested RUB24bn enhancing its fleet a
11 Jul 2016
Long-term drivers in place
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Long-term drivers in place
- Published:
11 Jul 2016 -
Author:
Jamie Aitkenhead -
Pages:
16
TransContainer (TRC) is weathering the sanctions and oil price-led economic slowdown in Russia well. While current earnings are cyclically depressed, cash flow generation remains positive and a payout ratio of 25% is intact. Our forecast five-year EBITDA CAGR of 11% is driven by end-market growth, and by TRC capturing a bigger share of this with its higher-margin integrated freight forwarding business. In the 10 years since its foundation, management has invested RUB24bn enhancing its fleet a