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WillScot Mobile Mini Holdings (WSC)
NASDAQ:WSC
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WillScot Mobile Mini Holdings
(NASDAQ:WSC)64Neutral
Positive Factors
Capital Allocation
Willscot updated its capital allocation strategy, initiating a dividend, which marks a momentous shift in the company's strategy, potentially attracting long-term investors.
Growth Potential
The investor day highlighted significant growth potential, with $2.5 billion of opportunity compared to $1.0 billion during the 2021 investor day.
Negative Factors
Earnings Guidance
The 2025 guidance for full-year revenue and adjusted EBITDA is below consensus and shows a decline year-over-year.
WillScot Mobile Mini Holdings (WSC) vs. S&P 500 (SPY)
Market Cap
$5.46B
Dividend YieldN/A
Average Volume (3M)2.77M
Price to Earnings (P/E)199.6
Beta (1Y)1.49
Revenue Growth1.31%
EPS Growth-89.60%
CountryUS
Employees4,500
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)0.15
Shares Outstanding183,575,060
10 Day Avg. Volume3,866,237
30 Day Avg. Volume2,771,899
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.15
Price to Cash Flow (P/CF)7.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.60Price Target Upside36.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
WillScot Mobile Mini Holdings Business Overview & Revenue Model
Company DescriptionWillScot Mobile Mini Holdings Corp. (WSC) is a leading provider of innovative modular space and portable storage solutions across North America. The company operates in the industrial and commercial sectors, offering a wide range of products including mobile offices, storage containers, and specialty containment solutions. WSC caters to diverse industries such as construction, education, healthcare, retail, and government, providing flexible and customizable space solutions to meet the dynamic needs of its clients.
How the Company Makes MoneyWillScot Mobile Mini Holdings makes money primarily through the leasing and sale of modular space and portable storage units. The company's revenue model is centered around long-term leases, which provide a steady and predictable income stream. Additionally, WSC generates revenue from the sale of units, particularly when clients require permanent solutions or when older units are retired from the fleet. The company benefits from economies of scale and operational efficiencies, which help in maintaining competitive pricing and strong margins. Strategic partnerships and a broad geographical footprint further enhance WSC's ability to serve a wide range of customers, contributing significantly to its earnings.
WillScot Mobile Mini Holdings Financial Statement Overview
Summary
WillScot Mobile Mini Holdings shows strong revenue and cash flow growth, with consistent operational metrics. However, challenges like high leverage and declining net profit margins could constrain future financial flexibility.Income Statement
WillScot Mobile Mini Holdings has shown consistent revenue growth over the years, with a strong increase from $1.06 billion in 2019 to $2.4 billion in 2024. The gross profit margin is healthy, and the company has maintained a solid EBITDA margin. However, the net profit margin has decreased significantly in the latest year, impacting profitability due to high operational expenses or other costs.72
Positive
Balance Sheet
The company's debt-to-equity ratio is high, indicating significant leverage, which could pose potential risks. However, the equity ratio has been maintained at a reasonable level. Return on equity has declined in the latest period, reflecting lower efficiency in generating profits from shareholders' equity.68
Positive
Cash Flow
Free cash flow has shown substantial growth, reflecting robust cash generation capabilities. The operating cash flow to net income ratio indicates strong cash flow relative to accounting profit, suggesting good cash management. However, the decline in free cash flow growth rate in the latest year is a point of concern.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.40B | 2.36B | 2.14B | 1.89B | 1.37B | Gross Profit |
| 1.30B | 1.33B | 1.14B | 968.21M | 659.97M | EBIT |
| 263.92M | 673.46M | 511.48M | 360.27M | 257.82M | EBITDA |
| 346.74M | 1.02B | 826.05M | 536.35M | 377.48M | Net Income Common Stockholders |
| 28.13M | 476.46M | 339.54M | 160.14M | 74.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.00M | 10.96M | 7.39M | 12.70M | 24.94M | Total Assets |
| 6.03B | 6.14B | 5.83B | 5.77B | 5.57B | Total Debt |
| 3.88B | 3.80B | 3.30B | 2.96B | 2.70B | Net Debt |
| 3.88B | 3.79B | 3.29B | 2.95B | 2.68B | Total Liabilities |
| 5.02B | 4.88B | 4.26B | 3.78B | 3.43B | Stockholders Equity |
| 1.02B | 1.26B | 1.57B | 2.00B | 2.14B |
| Cash Flow | Free Cash Flow | |||
| 543.21M | 512.03M | 257.86M | 230.91M | 115.97M | Operating Cash Flow |
| 561.64M | 761.24M | 744.66M | 539.90M | 304.81M | Investing Cash Flow |
| -362.35M | -350.00M | -309.33M | -384.05M | -125.36M | Financing Cash Flow |
| -200.12M | -418.94M | -429.37M | -167.89M | -158.96M |
WillScot Mobile Mini Holdings Technical Analysis
Negative
29.76
Price Trends
35.20
Negative
36.06
Negative
37.10
Negative
Market Momentum
-1.95
Positive
32.90
Neutral
16.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSC, the sentiment is Negative. The current price of 29.76 is below the 20-day moving average (MA) of 34.32, below the 50-day MA of 35.20, and below the 200-day MA of 37.10, indicating a bearish trend. The MACD of -1.95 indicates Positive momentum. The RSI at 32.90 is Neutral, neither overbought nor oversold. The STOCH value of 16.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WSC.
WillScot Mobile Mini Holdings Risk Analysis
WillScot Mobile Mini Holdings disclosed 40 risk factors in its most recent earnings report. WillScot Mobile Mini Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WillScot Mobile Mini Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.72B | 8.27 | 19.13% | 1.66% | -0.47% | -34.74% | |
75 Outperform | $41.06B | 16.25 | 30.74% | 1.06% | 7.07% | 9.56% | |
74 Outperform | $8.21B | 11.80 | 50.69% | 1.02% | 6.26% | 12.62% | |
72 Outperform | $3.42B | 27.95 | 21.26% | 1.17% | 3.22% | -27.67% | |
67 Neutral | $820.03M | 191.07 | 0.67% | 1.45% | -2.47% | -87.25% | |
64 Neutral | $5.46B | 199.60 | 2.47% | ― | 1.31% | -89.60% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
WSC
WillScot Mobile Mini Holdings
29.76
-16.18
-35.22%
ALSN
Allison Transmission Holdings
96.03
22.29
30.23%
ASTE
Astec
35.62
-4.21
-10.57%
HEES
H&E Equipment Services
93.40
37.76
67.86%
TEX
Terex
40.64
-17.03
-29.53%
URI
United Rentals
599.75
-58.62
-8.90%
WillScot Mobile Mini Holdings Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -22.86% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While the company achieved record revenue and EBITDA, introduced a new dividend, and expanded into new product categories, it also faced challenges with declining leasing revenue, sluggish construction markets, and increased capital expenditures. The strategic integrations and brand unification efforts are expected to drive future growth, but the current market conditions pose significant headwinds.Highlights
Record Revenue and EBITDA
Despite market challenges, WillScot achieved record full year revenue of $2.4 billion and adjusted EBITDA of $1.063 billion, demonstrating the resilience of their business model.
Strategic Integration and Brand Unification
Completed the integration of Mobile Mini and WillScot field sales and operations teams, enhancing operational efficiency and unifying the brand under WillScot.
Introduction of Quarterly Dividend
Initiated a quarterly cash dividend, providing an additional avenue to return capital to shareholders and demonstrating confidence in the company's strategic growth outlook.
Expansion into New Product Categories
Solidified cold storage and clearspan structures platforms, added perimeter solutions to in-house VAPS offering, and prepared for commercialization in 2025.
Lowlights
Decline in Leasing Revenue
Fourth quarter total revenue declined by 2% year-over-year, with leasing revenue down about 3%, driven by weaker volumes in both modular and storage units.
Sluggish Non-Residential Construction Market
Non-residential construction start square footage was down 2% year-over-year in Q4, following declines in the mid-teens for several quarters, impacting unit activations.
Challenges with Storage Activations
Storage activations have been down high single digits, with weaker activity on more transactional products impacting overall performance.
Increased Capital Expenditure and Cash Taxes
Net CapEx for 2025 is expected to increase by $30 million, and federal cash taxes are projected to rise by approximately $30 million, impacting free cash flow margins.
Company Guidance
During the WillScot Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for 2025, anticipating a revenue of approximately $2.375 billion and adjusted EBITDA of $1.045 billion. The guidance reflects macroeconomic uncertainties, projecting that volume headwinds will moderate through the year. The company expects first-quarter revenues to decline mid-single digits compared to the prior year. Throughout 2024, WillScot achieved a revenue of $2.4 billion and adjusted EBITDA of $1.063 billion, despite a 2% year-over-year revenue decline in Q4 2024. The company announced a new quarterly cash dividend of $0.07 per share and highlighted a $554 million adjusted free cash flow for 2024. WillScot aims to drive growth through strategic investments in sales enablement, product development, and operational efficiencies, with a focus on expanding their VAPS penetration and commercializing new product offerings such as cold storage and clearspan structures.WillScot Mobile Mini Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
WillScot Mobile Mini Holdings Announces Key Leadership Changes
Neutral
Dec 11, 2024
WillScot Holdings Corporation announced key leadership changes, appointing Tim Boswell as President and Chief Operating Officer, and Matt Jacobsen as Chief Financial Officer, effective January 1, 2025. These changes aim to bolster the company’s strategic initiatives and operational execution, with Boswell’s enhanced role and compensation reflecting his expanded responsibilities, while Jacobsen’s new position comes with a comprehensive employment agreement designed to ensure stability and continuity in the company’s financial leadership.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.