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Willscot Mobile Mini Holdings Corp. (WSC)
:WSC
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WillScot Mobile Mini Holdings
(NASDAQ:WSC)
Rating:64Neutral
Price Target:
$29.00
▲(3.46%Upside)
Positive Factors
Order Book
Inquiry levels for new orders are healthy and the net order book has continued to build over the last several months.
Strategic Investments
The company continues to invest in its internal commercial and operational capabilities, which would enhance growth and profitability.
Negative Factors
Financial Guidance
The 2025 guidance for full-year revenue and adjusted EBITDA is below consensus and shows a decline year-over-year.
Market Demand
Weak demand remains a volume headwind.
WillScot Mobile Mini Holdings (WSC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.11B
Dividend Yield0.26%
Average Volume (3M)2.21M
Price to Earnings (P/E)311.1
Beta (1Y)1.56
Revenue Growth-0.77%
EPS Growth-94.12%
CountryUS
Employees4,500
SectorIndustrials
Sector Strength92
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding182,389,570
10 Day Avg. Volume1,729,695
30 Day Avg. Volume2,205,990
Financial Highlights & Ratios
PEG Ratio-7.57
Price to Book (P/B)4.89
Price to Sales (P/S)0.00
P/FCF Ratio14.68
Enterprise Value/Market Cap1.72
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit6.93
Enterprise Value/Ebitda3.21
Forecast
1Y Price Target
$35.80Price Target Upside27.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
WillScot Mobile Mini Holdings Business Overview & Revenue Model
Company DescriptionWillScot 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 MoneyWillScot Mobile Mini Holdings generates revenue through the leasing and sale of its modular space and portable storage units. The company's primary revenue stream is rental income from leasing these units to customers across various industries. Additionally, WSC earns money from the sale of new and used units, as well as providing value-added services such as unit delivery, installation, and maintenance. Strategic partnerships and long-term customer contracts further stabilize and enhance revenue streams, ensuring consistent earnings through both cyclical and non-cyclical economic conditions.
WillScot Mobile Mini Holdings Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 9.36%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong order book growth, solid adjusted EBITDA margins, and successful debt refinancing highlighting the quarter. However, these were balanced by revenue and volume declines, contracting margins in delivery and installation, and persistent weakness in local accounts. Despite the challenges, the company maintains a positive outlook supported by internal initiatives and strategic positioning.Q1-2025 Updates
Positive Updates
Solid Adjusted EBITDA Margins
Adjusted EBITDA margins reached 41%, translating to $145 million of adjusted free cash flow at a 26% margin.
Positive Order Book Growth
The pending order book for modular and storage products increased by 7% year-over-year, supporting future lease activation levels.
Successful Debt Refinancing
Refinanced 2025 senior secured notes to 2030 at a fixed interest rate of 6.625%, extending maturity and enhancing financial flexibility.
Increased Value-Added Products (VAPs) Revenue
VAPs represented over 17% of total revenue, moving towards a long-term goal of 20%-25% of revenue from VAPs.
Strong Free Cash Flow Per Share
Adjusted free cash flow per share was reported at $0.79 for the quarter, with a trailing twelve months figure of $3.02.
Negative Updates
Decline in Total Revenue
Total revenue for Q1 2025 was $560 million, a decline of 5% year-over-year, primarily due to lower volumes.
Decreased Units on Rent
Average units on rent were down 5% year-over-year for modular and down 16% year-over-year for storage.
Contracting Delivery and Installation Margins
Delivery and installation margins contracted year-over-year in Q1 due to lower margin seasonal transportation activity.
Weakness in Local Accounts
Continued weakness was observed in local accounts, offset by growth from larger accounts.
Company Guidance
In the first quarter of 2025, WillScot achieved adjusted EBITDA margins of 41% and generated $145 million in adjusted free cash flow at a 26% margin, with a return on invested capital (ROIC) of 16%. They saw a 7% year-over-year increase in their pending order book for both modular and storage products, which supports their expected new lease activation levels in Q2. On a last twelve months (LTM) basis, their adjusted EBITDA margins were 44%, with adjusted free cash flow margins at 23%, equating to $3 of free cash flow per share. WillScot returned $45 million to shareholders and maintained a leverage ratio of 3.5x. The company reaffirmed its full-year 2025 outlook, projecting $2.375 billion in revenue, $1.045 billion in adjusted EBITDA, and $265 million in net capital expenditures. They aim to increase free cash flow per share to the top end of their revised three-to-five-year range of $4 to $6.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.70
Positive
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.65
Positive
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.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.37B | 2.40B | 2.36B | 2.14B | 1.89B | 1.37B | Gross Profit |
| 1.27B | 1.30B | 1.33B | 1.14B | 968.21M | 659.97M | EBIT |
| 396.07M | 263.92M | 673.46M | 511.48M | 360.27M | 257.82M | EBITDA |
| 577.97M | 669.06M | 1.02B | 826.05M | 536.35M | 377.48M | Net Income Common Stockholders |
| 14.94M | 28.13M | 476.46M | 339.54M | 160.14M | 74.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.68M | 9.00M | 10.96M | 7.39M | 12.70M | 24.94M | Total Assets |
| 5.96B | 6.03B | 6.14B | 5.83B | 5.77B | 5.57B | Total Debt |
| 3.88B | 3.98B | 3.80B | 3.30B | 2.96B | 2.70B | Net Debt |
| 3.87B | 3.97B | 3.79B | 3.29B | 2.95B | 2.68B | Total Liabilities |
| 4.95B | 5.02B | 4.88B | 4.26B | 3.78B | 3.43B | Stockholders Equity |
| 1.01B | 1.02B | 1.26B | 1.57B | 2.00B | 2.14B |
| Cash Flow | Free Cash Flow | ||||
| 334.64M | 543.21M | 512.03M | 257.86M | 230.91M | 115.97M | Operating Cash Flow |
| 559.60M | 561.64M | 761.24M | 744.66M | 539.90M | 304.81M | Investing Cash Flow |
| -316.34M | -362.35M | -350.00M | -309.33M | -384.05M | -125.36M | Financing Cash Flow |
| -244.43M | -200.12M | -418.94M | -429.37M | -167.89M | -158.96M |
WillScot Mobile Mini Holdings Technical Analysis
Neutral
28.03
Price Trends
26.97
Positive
30.92
Negative
33.99
Negative
Market Momentum
0.44
Positive
52.55
Neutral
23.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSC, the sentiment is Neutral. The current price of 28.03 is above the 20-day moving average (MA) of 27.76, above the 50-day MA of 26.97, and below the 200-day MA of 33.99, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 52.55 is Neutral, neither overbought nor oversold. The STOCH value of 23.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 1 New Risks
1.
Actions of activist shareholders could negatively affect our business Q4, 2024
WillScot Mobile Mini Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $45.51B | 18.13 | 30.17% | 0.95% | 7.20% | 4.56% | |
79 Outperform | $2.79B | 11.75 | 22.80% | 1.68% | 7.31% | 91.99% | |
68 Neutral | $3.58B | 28.02 | 9.60% | 2.14% | 8.34% | -63.02% | |
65 Neutral | $4.41B | 12.06 | 5.22% | 249.80% | 4.09% | -12.16% | |
64 Neutral | $5.11B | 311.10 | 1.28% | 0.26% | -0.77% | -94.12% | |
59 Neutral | $7.48B | ― | -33.58% | ― | 4.27% | -120.11% | |
56 Neutral | $3.50B | 38.33 | 15.74% | 1.16% | -3.52% | -46.60% |
* Industrials Sector Average
Performance Comparison
WSC
WillScot Mobile Mini Holdings
28.03
-10.84
-27.89%
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95.46
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131.30
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-5.22%
MGRC
Mcgrath Rentcorp
115.42
7.05
6.51%
URI
United Rentals
717.56
58.81
8.93%
PONY
Pony AI Inc. Sponsored ADR
21.35
8.33
63.98%
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.