WILLSCOT HOLDINGS CORP (WSC) Stock Fundamental Analysis
NASDAQ:WSC - Nasdaq - US9713781048 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to WSC. WSC was compared to 49 industry peers in the Construction & Engineering industry. There are concerns on the financial health of WSC while its profitability can be described as average. WSC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WSC had positive earnings in the past year.
In the past year WSC had a positive cash flow from operations.
In the past 5 years WSC has always been profitable.
Each year in the past 5 years WSC had a positive operating cash flow.
1.2 Ratios
WSC has a Return On Assets (0.47%) which is in line with its industry peers.
WSC's Return On Equity of 2.76% is in line compared to the rest of the industry. WSC outperforms 42.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.15%, WSC is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WSC is below the industry average of 11.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 2.76% | ||
| ROIC | 8.15% |
ROA(3y)4.68%
ROA(5y)3.63%
ROE(3y)20.74%
ROE(5y)14.77%
ROIC(3y)8.51%
ROIC(5y)6.84%
1.3 Margins
Looking at the Profit Margin, with a value of 1.17%, WSC is in line with its industry, outperforming 44.68% of the companies in the same industry.
WSC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 24.76%, WSC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of WSC has grown nicely.
With an excellent Gross Margin value of 54.34%, WSC belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
WSC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.76% | ||
| PM (TTM) | 1.17% | ||
| GM | 54.34% |
OM growth 3Y8.73%
OM growth 5Y16.39%
PM growth 3Y-50.31%
PM growth 5YN/A
GM growth 3Y2.48%
GM growth 5Y6.94%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WSC is destroying value.
Compared to 1 year ago, WSC has less shares outstanding
Compared to 5 years ago, WSC has more shares outstanding
The debt/assets ratio for WSC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that WSC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.16, WSC is not doing good in the industry: 76.60% of the companies in the same industry are doing better.
WSC has a debt to FCF ratio of 14.13. This is a negative value and a sign of low solvency as WSC would need 14.13 years to pay back of all of its debts.
WSC has a worse Debt to FCF ratio (14.13) than 68.09% of its industry peers.
WSC has a Debt/Equity ratio of 3.62. This is a high value indicating a heavy dependency on external financing.
WSC has a worse Debt to Equity ratio (3.62) than 87.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.62 | ||
| Debt/FCF | 14.13 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.95
WACC8.54%
2.3 Liquidity
WSC has a Current Ratio of 0.95. This is a bad value and indicates that WSC is not financially healthy enough and could expect problems in meeting its short term obligations.
WSC has a Current ratio of 0.95. This is in the lower half of the industry: WSC underperforms 78.72% of its industry peers.
A Quick Ratio of 0.87 indicates that WSC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, WSC is doing worse than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
WSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.28%, which is quite good.
WSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.42% yearly.
WSC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.31%.
WSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.63% yearly.
EPS 1Y (TTM)8.28%
EPS 3Y38.42%
EPS 5YN/A
EPS Q2Q%9.09%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y12.71%
Revenue growth 5Y17.63%
Sales Q2Q%-1.61%
3.2 Future
The Earnings Per Share is expected to grow by 32.76% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.87% on average over the next years.
EPS Next Y-0.17%
EPS Next 2Y10.22%
EPS Next 3Y32.76%
EPS Next 5YN/A
Revenue Next Year-0.62%
Revenue Next 2Y2.18%
Revenue Next 3Y2.87%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.34, WSC is valued correctly.
WSC's Price/Earnings ratio is rather cheap when compared to the industry. WSC is cheaper than 82.98% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, WSC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.36, WSC is valued correctly.
Based on the Price/Forward Earnings ratio, WSC is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
WSC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 15.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSC indicates a rather cheap valuation: WSC is cheaper than 85.11% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.64 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
WSC has a very decent profitability rating, which may justify a higher PE ratio.
WSC's earnings are expected to grow with 32.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.22%
EPS Next 3Y32.76%
5. Dividend
5.1 Amount
WSC has a yearly dividend return of 0.94%, which is pretty low.
The stock price of WSC dropped by -28.32% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.03, WSC pays a better dividend. On top of this WSC pays more dividend than 91.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, WSC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
WSC does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y10.22%
EPS Next 3Y32.76%
28.07
-1.64 (-5.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners100.24%
Inst Owner Change-3.07%
Ins Owners1.04%
Ins Owner Change0.06%
Market Cap5.15B
Analysts77.14
Price Target43.92 (56.47%)
Short Float %8.06%
Short Ratio6.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)29.22%
Min EPS beat(2)-0.53%
Max EPS beat(2)58.96%
EPS beat(4)2
Avg EPS beat(4)16.37%
Min EPS beat(4)-13.49%
Max EPS beat(4)58.96%
EPS beat(8)5
Avg EPS beat(8)10%
EPS beat(12)7
Avg EPS beat(12)10.86%
EPS beat(16)9
Avg EPS beat(16)2.18%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)-1.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)0.07%
Revenue beat(8)2
Avg Revenue beat(8)-1.06%
Revenue beat(12)2
Avg Revenue beat(12)-2.79%
Revenue beat(16)3
Avg Revenue beat(16)-4.16%
PT rev (1m)-2.15%
PT rev (3m)0.13%
EPS NQ rev (1m)-22.87%
EPS NQ rev (3m)-24.82%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)-3.68%
Revenue NQ rev (3m)-3.68%
Revenue NY rev (1m)-3.02%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 15.36 | ||
| P/S | 2.15 | ||
| P/FCF | 19.64 | ||
| P/OCF | 9.18 | ||
| P/B | 5.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.05 |
EPS(TTM)1.83
EY6.52%
EPS(NY)1.83
Fwd EY6.51%
FCF(TTM)1.43
FCFY5.09%
OCF(TTM)3.06
OCFY10.9%
SpS13.05
BVpS5.55
TBVpS-2.36
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 2.76% | ||
| ROCE | 10.88% | ||
| ROIC | 8.15% | ||
| ROICexc | 8.17% | ||
| ROICexgc | 11.14% | ||
| OM | 24.76% | ||
| PM (TTM) | 1.17% | ||
| GM | 54.34% | ||
| FCFM | 10.95% |
ROA(3y)4.68%
ROA(5y)3.63%
ROE(3y)20.74%
ROE(5y)14.77%
ROIC(3y)8.51%
ROIC(5y)6.84%
ROICexc(3y)8.52%
ROICexc(5y)6.85%
ROICexgc(3y)11.77%
ROICexgc(5y)9.61%
ROCE(3y)11.36%
ROCE(5y)9.12%
ROICexcg growth 3Y18.48%
ROICexcg growth 5Y21.69%
ROICexc growth 3Y21.05%
ROICexc growth 5Y17.88%
OM growth 3Y8.73%
OM growth 5Y16.39%
PM growth 3Y-50.31%
PM growth 5YN/A
GM growth 3Y2.48%
GM growth 5Y6.94%
F-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.62 | ||
| Debt/FCF | 14.13 | ||
| Debt/EBITDA | 3.77 | ||
| Cap/Depr | 77.74% | ||
| Cap/Sales | 12.49% | ||
| Interest Coverage | 2.74 | ||
| Cash Conversion | 57.42% | ||
| Profit Quality | 932.67% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.16 |
F-Score5
WACC8.54%
ROIC/WACC0.95
Cap/Depr(3y)97.68%
Cap/Depr(5y)93.33%
Cap/Sales(3y)15.25%
Cap/Sales(5y)15.81%
Profit Quality(3y)372.04%
Profit Quality(5y)283.37%
High Growth Momentum
Growth
EPS 1Y (TTM)8.28%
EPS 3Y38.42%
EPS 5YN/A
EPS Q2Q%9.09%
EPS Next Y-0.17%
EPS Next 2Y10.22%
EPS Next 3Y32.76%
EPS Next 5YN/A
Revenue 1Y (TTM)1.31%
Revenue growth 3Y12.71%
Revenue growth 5Y17.63%
Sales Q2Q%-1.61%
Revenue Next Year-0.62%
Revenue Next 2Y2.18%
Revenue Next 3Y2.87%
Revenue Next 5YN/A
EBIT growth 1Y-14.1%
EBIT growth 3Y22.55%
EBIT growth 5Y36.91%
EBIT Next Year82.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-48.76%
FCF growth 3Y4.35%
FCF growth 5YN/A
OCF growth 1Y-26.22%
OCF growth 3Y1.32%
OCF growth 5Y26.61%