U-Haul (UHAL) AI Stock Analysis

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U-Haul

(NYSE:UHAL)

Rating:61Neutral

Price Target:―

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.

U-Haul (UHAL) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$10.91B

Dividend YieldN/A

Average Volume (3M)83.89K

Price to Earnings (P/E)29.4

Beta (1Y)0.76

Revenue Growth0.98%

EPS Growth-35.16%

CountryUS

Employees17,836

SectorIndustrials

Sector Strength92

IndustryRental & Leasing Services

Share Statistics

EPS (TTM)0.30

Shares Outstanding19,607,788

10 Day Avg. Volume96,074

30 Day Avg. Volume83,885

Financial Highlights & Ratios

PEG Ratio-4.12

Price to Book (P/B)1.64

Price to Sales (P/S)0.00

P/FCF Ratio12.80

Enterprise Value/Market Cap1.57

Enterprise Value/Revenue0.75

Enterprise Value/Gross Profit8.25

Enterprise Value/Ebitda2.34

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusHold

Number of Analyst Covering1

U-Haul 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.

U-Haul 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

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

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

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
5.77B	5.63B	5.86B	5.74B	4.54B	3.98B
	Gross Profit
2.08B	1.65B	5.02B	5.48B	4.33B	3.81B
	EBIT
798.23M	977.79M	1.44B	1.64B	961.15M	540.13M
	EBITDA
1.80B	1.92B	2.18B	2.34B	1.63B	1.20B
	Net Income Common Stockholders
430.87M	628.71M	924.47M	1.12B	610.86M	442.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.73B	1.54B	2.06B	2.70B	1.19B	494.35M
	Total Assets
20.33B	19.06B	18.12B	17.30B	14.65B	13.44B
	Total Debt
6.95B	6.33B	6.75B	6.10B	4.76B	4.73B
	Net Debt
5.93B	4.79B	4.69B	3.39B	3.57B	4.23B
	Total Liabilities
12.70B	11.89B	11.60B	11.41B	9.80B	9.22B
	Stockholders Equity
7.63B	7.17B	6.53B	5.89B	4.85B	4.22B
Cash Flow		Free Cash Flow
876.66M	-1.54B	-994.29M	-190.30M	93.92M	-1.23B
	Operating Cash Flow
1.47B	1.45B	1.73B	1.95B	1.54B	1.08B
	Investing Cash Flow
-2.77B	-2.05B	-2.42B	-1.87B	-1.13B	-1.77B
	Financing Cash Flow
527.14M	66.53M	59.80M	1.43B	287.35M	512.32M

U-Haul Technical Analysis

Technical Analysis Sentiment

Negative

Last Price61.99

Price Trends

50DMA

62.99

Negative

100DMA

66.75

Negative

200DMA

69.39

Negative

Market Momentum

MACD

0.04

Positive

RSI

44.35

Neutral

STOCH

11.62

Positive

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 61.99 is below the 20-day moving average (MA) of 63.55, below the 50-day MA of 62.99, and below the 200-day MA of 69.39, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 11.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UHAL.

U-Haul Risk Analysis

U-Haul disclosed 17 risk factors in its most recent earnings report. U-Haul 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

U-Haul Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URI	80 Outperform	$45.51B	18.13	30.17%	0.95%	7.20%	4.56%
MGRC	79 Outperform	$2.79B	11.75	22.80%	1.68%	7.31%	91.99%
R	69 Neutral	$6.17B	13.06	16.41%	2.10%	6.21%	47.05%
HRI	68 Neutral	$3.58B	28.02	9.60%	2.14%	8.34%	-63.02%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.39%	3.96%	-12.36%
UHAL	61 Neutral	$10.91B	29.41	5.61%	―	0.98%	-35.16%
HEES	56 Neutral	$3.47B	38.00	15.74%	1.16%	-3.52%	-46.60%

* Industrials Sector Average

Performance Comparison

UHAL

U-Haul

61.99

-2.05

-3.20%

HEES

H&E Equipment Services

94.64

48.04

103.09%

HRI

Herc Holdings

125.68

-12.85

-9.28%

MGRC

Mcgrath Rentcorp

113.38

5.01

4.62%

Ryder System

149.28

31.14

26.36%

URI

United Rentals

700.10

41.35

6.28%

U-Haul Earnings Call Summary

Earnings Call Date:Feb 05, 2025

(Q3-2025)

% Change Since: -13.39%|

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.