Alan Robert Ross
Research analyst, value, growth, newsletter provider

Student Transportation's Business Is Very Overvalued

Student Transportation's Business is Very Overvalued

Executive Summary

Student Transportation Inc. (NYSE: STB, Toronto: STB) is the 3rd largest School Bus company in North America and has long been a favorite of income-investors. The company has had an active policy of trying to accretively consolidate the very fragmented busing industry and has been growing quite consistently. Regrettably, the shareholders have paid for increasing corporate revenues with higher debt and share counts, with no significant benefit from the supposedly accretive acquisitions, given that 2013 results are worse than they were in 2011. In fact, Student Transportation's business does not generate enough cash to fund its capex and its dividends, and has not been able to do so, for years. It...

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