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Non-Tech : Expeditors Int'l (EXPD)
EXPD 158.83+0.4%Jan 9 9:30 AM EST
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To: JakeStraw who started this subject12/19/2003 10:25:36 AM
From: JakeStraw   of 87
 
Expeditors International of Washington is the Dell of transportation, as it generates mountains of cash flow without tying up hard assets or inventory. It is a Seattle-based freight forwarding company whose main role in the trade ecosystem is to cheaply buy space on air and ocean carriers in bulk and sell it to companies that manufacture things overseas for sale in the U.S.

It has grown without acquisitions to a $4 billion market cap via reliable 15% to 20% earnings and revenue growth over the past decade. It has $300 million in cash, no debt and its P/E multiple has expanded from the 17 to 20 range a few years ago to a premium 30 to 35 today.

Expeditors has been a leader in corporate governance before it became trendy: Everyone in the company is paid a low base wage augmented by a bonus tied to individual branch offices' profits. The chief executive pays for his own parking at corporate headquarters. The company's already-solid return on equity will improve as industry consolidation and its own growth lead to greater economies of scale.

Corporate documents are refreshingly candid, and the colorful CEO, once asked if he would make acquisitions, said "Why buy what you can kill?" Canny fund-management company Ruane Cunniff is the leading, longtime institutional owner with 15% of outstanding shares. Shares are up 20% this year; they were only down once in the past 10 years (-3.6% in 1993); 10-year annualized return is 33%.

thestreet.com
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