"The result is ok but not great. Just eeked out a profit. "
I don't think any investment on Capral can be predicated on an accounting profit thesis.
Rather, I think that this is the reason for an investment in Capral:
Outside of during times of acute crisis, such as the GFC or the bust of the mining boom, I don't think I can recall seeing a company that undervalued (and remember, that doesn't include any of Capral's non-current assets...and so, because Capral has no borrowings, it is really just the company's market cap compared to its cash + net working capital).
The question is, how does that significant undervaluation get monetised, other than over a period of years in the form of distribution of surplus organic capital to shareholders?
Someone who was discussing Capral with me a while back suggested that the company might be a target for private equity takeover. The trouble with that thesis, as a catalyst to restore value quickly, are the off-balance sheet liabilities (see below) which, given the way private equity operates, constitutes a bridge too far, I think:
The only corporate acquirer of Capral would be an industry incumbent, with a long-term view that is consistent with taking on the operating leases.
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CAA Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
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