WillScot Mobile Mini Holdings (WSC) AI Stock Analysis

• Market Cap: $4.98B
• Dividend Yield: 0.26%
• Average Volume (3M): 4.14M
• Price to Earnings (P/E): 184.7
• Beta (1Y): 1.49
• Revenue Growth: -0.77%
• EPS Growth: -94.12%
• Country: US
• Employees: 4,500
• Sector: Industrials
• Sector Strength: 78
• Industry: Rental & Leasing Services
• EPS (TTM): 0.24
• Shares Outstanding: 182,389,570
• 10 Day Avg. Volume: 2,307,113
• 30 Day Avg. Volume: 4,139,765
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.05
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.83
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.60
• Price Target Upside: 30.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

WillScot Mobile Mini Holdings stock receives a score of 60 out of 99, reflecting several significant factors. The company's financial performance is mixed, with strong cash flows but challenges in profitability and a high debt-to-equity ratio. Technical analysis suggests a bearish trend, and the stock appears overvalued with a high P/E ratio and low dividend yield. The latest earnings call presented both strengths and weaknesses, with a generally positive outlook despite current challenges. Investors should be cautious of the stock's valuation and technical indicators while considering the company's strategic initiatives for future growth.

Positive Factors

Earnings Outlook

Management confirmed that results met its own expectations, supporting the decision to maintain its outlook for the full year despite the large degree of macroeconomic uncertainty.

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.

Market Expansion

The company is growing its presence in existing markets while expanding into new ones, targeting incremental tuck-in acquisitions to augment organic growth.

Negative Factors

Adjusted EBITDA Margin

The full-year adjusted EBITDA margin is expected to decrease by 40 basis points annually.

Earnings Guidance

The 2025 guidance for full-year revenue and adjusted EBITDA is below consensus and shows a decline year-over-year.

Nonresidential Construction Weakness

The February ABI readout of 45.5 remains below 50, suggesting continued weakness in WillScot’s core nonresidential construction end-market.

WillScot Mobile Mini Holdings Business Overview & Revenue Model

Company Description

WillScot Holdings Corporation provides workspace and portable storage solutions in the United States, Canada, and Mexico. It operates in two segments, Modular Solutions and Storage Solutions. Its modular solutions include panelized and stackable offices, single-wide modular space units, section modulars and redi-plex, classrooms, ground level offices, blast-resistant modules, clearspan structures, and other modular space; and portable storage solutions, such as portable and cold storage containers, as well as trailers. The company leases modular space and portable storage units to customers in the construction, commercial and industrial, retail and wholesale trade, energy and natural resources, education, government and institutions, and healthcare markets. The company offers its solutions primarily under the WillScot and Mobile Mini brand names. The company was formerly known as WillScot Mobile Mini Holdings Corp. and changed its name to WillScot Holdings Corporation in July 2024. WillScot Mobile Mini Holdings Corp. is headquartered in Phoenix, Arizona.

How the Company Makes Money

WillScot 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 presents a mixed financial performance. Despite robust revenue growth over the years, the TTM period shows some profitability challenges, with declining net income impacting net profit margins and return on equity. The company's leveraged balance sheet positions it at risk if not cautiously managed. Strong cash flows provide some buffer, though careful monitoring of expenditure and debt levels is essential for sustainable growth.

Income Statement

WillScot Mobile Mini Holdings shows a consistent revenue growth trend, with a notable increase from 2020 to 2024. However, the TTM data indicates a slight dip in revenue. Gross profit margins have remained healthy, though net income has fluctuated significantly, affecting the net profit margin negatively in the TTM period. The company maintains decent EBIT and EBITDA margins, reflecting operational efficiency, although the recent decline in EBIT shows potential challenges.

Balance Sheet

The balance sheet of WillScot Mobile Mini Holdings highlights a high debt-to-equity ratio, indicating a leveraged position which may pose risks if not managed properly. The equity ratio shows a declining trend, suggesting increased liabilities relative to assets. Return on equity has weakened in the TTM period due to reduced net income, impacting profitability metrics.

Cash Flow

The company exhibits strong operating cash flow, often exceeding net income, which points to effective cash generation from core activities. Free cash flow has shown variability but remains positive, indicating flexibility in financing and investments. The decline in free cash flow in the TTM suggests increased capital expenditures or reduced operating cash flows.

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
669.06M	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
3.98B	3.80B	3.30B	2.96B	2.70B
	Net Debt
3.97B	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

• Technical Analysis Sentiment: Negative
• Last Price: 27.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 27.3 is above the 20-day moving average (MA) of 24.39, below the 50-day MA of 27.94, and below the 200-day MA of 34.89, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 86.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WSC.

WillScot Mobile Mini Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URI	80 Outperform	$43.25B	17.23	30.17%	1.00%	7.20%	4.56%
MGRC	74 Outperform	$2.70B	11.36	22.80%	1.74%	7.31%	91.99%
Sector *	64 Neutral	$4.27B	11.81	5.31%	249.66%	4.08%	-8.61%
HRI	61 Neutral	$3.27B	15.53	9.60%	2.32%	8.34%	-63.02%
WSC	60 Neutral	$4.98B	184.71	1.28%	0.26%	-0.77%	-94.12%
HEES	56 Neutral	$3.33B	36.43	15.74%	1.21%	-3.52%	-46.60%
PONY	34 Underperform	$3.64B	―	-33.58%	―	4.27%	-120.11%

WillScot Mobile Mini Holdings Corporate Events

WillScot Mobile Mini Holdings Announces Key Leadership Changes

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.