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Amerco (UHAL)
NYSE:UHAL

Amerco (UHAL) AI Stock Analysis

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Amerco

(NYSE:UHAL)

61Neutral
UHAL shows strength in its financial performance, particularly with a robust balance sheet and improvements in free cash flow. However, technical indicators suggest bearish momentum, and the stock's valuation seems high without a dividend yield. Earnings call insights reveal growth in key areas but also highlight earnings decline and reduced gains from equipment sales, impacting overall sentiment. These factors combine to result in a moderate overall stock score.

Amerco (UHAL) vs. S&P 500 (SPY)

Amerco Business Overview & Revenue Model

Company DescriptionAmerco (UHAL) is a leading provider of rental and storage solutions, primarily known through its subsidiary, U-Haul International, Inc. The company operates in the truck and trailer rental sector, offering a comprehensive range of services including moving equipment rentals, self-storage facilities, and related services. With a vast network across North America, Amerco provides essential services for individuals and businesses needing convenient transportation and storage solutions.
How the Company Makes MoneyAmerco generates revenue primarily through its U-Haul segment, which involves renting out trucks, trailers, and towing devices to customers. In addition, the company earns income from self-storage rentals, which offer individuals and businesses secure storage spaces. Other revenue streams include the sale of moving supplies and accessories, such as boxes and packing materials. Amerco also benefits from its insurance operations, which provide coverage for rental equipment and storage customers. Strategic partnerships and an extensive network help enhance their service offerings and reach, contributing to the company's overall earnings.

Amerco Financial Statement Overview

Summary
Amerco exhibits solid financial performance with strong gross profit margins and a robust balance sheet with zero total debt. However, revenue and net income inconsistencies and the decline in return on equity pose some risks. Recent improvements in free cash flow show better cash management, but fluctuations in profitability and cash flow need to be addressed for sustained growth.
Income Statement
75
Positive
Amerco has shown a strong gross profit margin with an increase from previous periods, indicating efficient cost management. However, the net profit margin has declined recently, pointing towards increased expenses or reduced operational efficiency. The revenue growth rate has been inconsistent, showing signs of volatility, but the company maintains a healthy EBIT and EBITDA margin, reflecting good operational control.
Balance Sheet
80
Positive
The balance sheet is robust with no total debt in the TTM period, improving the debt-to-equity ratio significantly. Stockholders' equity has increased, enhancing the equity ratio and indicating strong financial health. The return on equity has decreased, suggesting a need to improve profitability relative to equity. Overall, the company shows financial stability with a strong equity position.
Cash Flow
70
Positive
Operating cash flow remains strong, but free cash flow has been negative in previous years, impacting the free cash flow growth rate. The company has improved its free cash flow position in the TTM period, reflecting better capital expenditure management. However, the ratios of operating and free cash flow to net income highlight potential discrepancies in cash generation relative to reported profits.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
5.63B5.86B5.74B4.54B3.98B
Gross Profit
1.65B5.02B5.48B4.33B3.81B
EBIT
977.79M1.44B1.64B961.15M540.13M
EBITDA
1.92B2.18B2.34B1.63B1.20B
Net Income Common Stockholders
628.71M924.47M1.12B610.86M442.05M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.54B2.06B2.70B1.19B494.35M
Total Assets
19.06B18.12B17.30B14.65B13.44B
Total Debt
6.33B6.75B6.10B4.76B4.73B
Net Debt
4.79B4.69B3.39B3.57B4.23B
Total Liabilities
11.89B11.60B11.41B9.80B9.22B
Stockholders Equity
7.17B6.53B5.89B4.85B4.22B
Cash FlowFree Cash Flow
-1.54B-994.29M-190.30M93.92M-1.23B
Operating Cash Flow
1.45B1.73B1.95B1.54B1.08B
Investing Cash Flow
-2.05B-2.42B-1.87B-1.13B-1.77B
Financing Cash Flow
66.53M59.80M1.43B287.35M512.32M

Amerco Technical Analysis

Technical Analysis Sentiment
Negative
Last Price64.92
Price Trends
50DMA
64.78
Negative
100DMA
68.06
Negative
200DMA
69.53
Negative
Market Momentum
MACD
-1.11
Negative
RSI
46.86
Neutral
STOCH
65.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UHAL, the sentiment is Negative. The current price of 64.92 is above the 20-day moving average (MA) of 61.21, above the 50-day MA of 64.78, and below the 200-day MA of 69.53, indicating a neutral trend. The MACD of -1.11 indicates Negative momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UHAL.

Amerco Risk Analysis

Amerco disclosed 17 risk factors in its most recent earnings report. Amerco reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Amerco Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
URURI
80
Outperform
$43.25B17.2330.17%1.04%7.20%4.56%
74
Outperform
$2.64B11.1322.80%1.78%7.31%91.99%
RR
69
Neutral
$5.98B12.6616.41%2.26%6.21%47.05%
64
Neutral
$4.28B11.805.30%250.74%4.12%-9.02%
61
Neutral
$11.61B30.805.61%0.98%-35.16%
HRHRI
61
Neutral
$3.27B15.539.60%2.42%8.34%-63.02%
56
Neutral
$3.30B36.1715.74%1.22%-3.52%-46.60%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UHAL
Amerco
64.92
-1.93
-2.89%
HEES
H&E Equipment Services
90.72
44.97
98.30%
HRI
Herc Holdings
116.20
-28.33
-19.60%
MGRC
Mcgrath Rentcorp
109.62
2.47
2.31%
R
Ryder System
144.71
22.70
18.61%
URI
United Rentals
665.40
4.69
0.71%

Amerco Earnings Call Summary

Earnings Call Date:Feb 05, 2025
(Q3-2025)
|
% Change Since: -9.29%|
Next Earnings Date:May 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and operational efficiency, particularly in U-Box and self-storage segments. However, the decline in earnings, reduced gains on equipment sales, and declining interest income were notable concerns. Overall, while there are strong areas of growth, certain financial metrics show challenges.
Q3-2025 Updates
Positive Updates
Revenue Growth and Increases
Equipment rental revenue increased by $39 million, which is over 4.5% for the quarter, surpassing the 1.5% to 1.7% improvements in previous quarters. Self-storage revenues increased by $17 million, an 8% increase for the quarter.
U-Box Expansion
U-Box revenue results increased by $9 million. The company increased its warehouse space for U-Box containers by over 20% in the last twelve months.
Operational Efficiency
Operating expenses were up by only 1.6%, with significant declines in fleet repair and maintenance costs of nearly $10.5 million.
Self-Storage Growth
The company added 2.3 million new net rentable square feet during the quarter, with a current development pipeline of approximately 8.5 million new square feet.
Record Pipeline
The company set a record with 7.4 million square feet of net rentable space added in the trailing twelve months.
Negative Updates
Earnings Decline
Third quarter earnings were $67 million, down from $99 million in the same quarter last year. Earnings per share dropped from $0.51 to $0.35.
Decrease in Gains from Equipment Sales
Proceeds from sales of retired equipment decreased by $73 million, contributing to a $0.16 per share decline in earnings.
Declining Interest Income
Interest income declined due to reduced short-term cash balances as funds were reinvested.
One-Way Transaction Decline
One-way transactions were down for the quarter, though revenue per mile gains helped offset the decline.
Occupancy Rate Decrease
Average occupancy in the self-storage portfolio declined to 78.7%, with same-store occupancy decreasing by 50 basis points to 92.4%.
Company Guidance
During the U-Haul Holding Company third quarter fiscal 2025 investor call, management provided a comprehensive update on various business segments. The company reported third quarter earnings of $67 million, translating to $0.35 per nonvoting share, down from $99 million or $0.51 per share in the same quarter last year. EBITDA increased by $47.8 million, driven by a $39 million or 4.5% rise in equipment rental revenues and an 8% increase in self-storage revenues. Capital expenditures for new rental equipment reached $1.587 billion, while proceeds from equipment sales decreased by $73 million to $521 million. U-Haul's self-storage segment saw a significant addition of 80,000 new units, although average occupancy slightly declined to 78.7%. The U-Box segment continued its growth trajectory with a $9 million revenue increase, supported by expanded storage capacity. Despite challenges, the company remains optimistic about future growth, supported by a robust development pipeline of 8.5 million new square feet.
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.