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Should You Be Holding Seaspan Corporation (NYSE:SSW)?

Seaspan Corporation (NYSE:SSW) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of SSW, it is a dependable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Seaspan here.

Undervalued average dividend payer

SSW’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if SSW’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, SSW’s share price is trading below the group’s average. This supports the theory that SSW is potentially underpriced.

NYSE:SSW Intrinsic Value Export January 22nd 19
NYSE:SSW Intrinsic Value Export January 22nd 19

SSW is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.

NYSE:SSW Historical Dividend Yield January 22nd 19
NYSE:SSW Historical Dividend Yield January 22nd 19

Next Steps:

For Seaspan, I’ve put together three pertinent aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for SSW’s future growth? Take a look at our free research report of analyst consensus for SSW’s outlook.

  2. Historical Performance: What has SSW’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SSW? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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