Professional
Added to YB: 2024-07-10
Pitch date: 2024-07-09
WSC [bearish]
WillScot Holdings Corporation
+43.51%
current return
Author Info
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Company Info
WillScot Holdings Corporation provides turnkey temporary space solutions in the United States, Canada, and Mexico.
Market Cap
$3.2B
Pitch Price
$36.11
Price Target
N/A
Dividend
1.59%
EV/EBITDA
9.64
P/E
14.64
EV/Sales
3.06
Sector
Construction and Engineering
Category
turnaround
Willscot's Overlevered Fleet with Unrentable Units Set to Become a Problem for McGrath Shareholders
Underinvestment in fleet flatters FCF but leaves units unrentable. Low 62.5% utilization vs 78% industry. CapEx 22% of revenue vs peers' 60%. Old units used as loan collateral. Mgmt incentivized for buybacks over fleet. 2024 guidance overly optimistic. Debt to spike post-MGRC deal.
Read full article (21 min)