Basic analysisCapital intensive.
Revenue roughly equal capital equal LTD plus Equity.
Net margins small - 5-6%
Depreciation roughly equals required capital investment.
Net Income needed to fund increasing A/R plus Inventories
Growth required more debt.
Debt / Equity already closing in on 1:1
Using rising share price to issue shares for cheap money. They then buy back B4 the reporting date, so that the #shares o/s at both the BOY and EOY is lower than the average o/s during the year. This is a good cheap source of money but only works with a rising stock price.
The rising US dollar makes bidding less competitive for the repair and maintenance contracts - compared to say Brazil.
Their tax rate is about 50%
The Income Statement has <discountinued operations> every year. Therefor you cannot really believe the breakdown of items within the continuing section.
Buying the transportation sector ETF gets the same long-term return without half the volatility.