WILLSCOT HOLDINGS CORP (WSC) Stock Fundamental Analysis
NASDAQ:WSC - Nasdaq - US9713781048 - Common Stock - Currency: USD
Overall WSC gets a fundamental rating of 4 out of 10. We evaluated WSC against 52 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WSC was profitable.
In the past year WSC had a positive cash flow from operations.
WSC had positive earnings in each of the past 5 years.
WSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WSC (0.25%) is worse than 65.38% of its industry peers.
WSC has a Return On Equity of 1.48%. This is in the lower half of the industry: WSC underperforms 63.46% of its industry peers.
WSC has a Return On Invested Capital of 8.13%. This is in the better half of the industry: WSC outperforms 69.23% of its industry peers.
WSC had an Average Return On Invested Capital over the past 3 years of 8.51%. This is significantly below the industry average of 16.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 1.48% | ||
| ROIC | 8.13% |
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
The Profit Margin of WSC (0.63%) is comparable to the rest of the industry.
WSC's Profit Margin has declined in the last couple of years.
WSC has a Operating Margin of 24.47%. This is amongst the best in the industry. WSC outperforms 98.08% of its industry peers.
In the last couple of years the Operating Margin of WSC has grown nicely.
WSC has a better Gross Margin (54.28%) than 98.08% of its industry peers.
In the last couple of years the Gross Margin of WSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.47% | ||
| PM (TTM) | 0.63% | ||
| GM | 54.28% |
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
WSC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WSC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that WSC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.17, WSC is doing worse than 69.23% of the companies in the same industry.
WSC has a debt to FCF ratio of 13.82. This is a negative value and a sign of low solvency as WSC would need 13.82 years to pay back of all of its debts.
The Debt to FCF ratio of WSC (13.82) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.56 is on the high side and indicates that WSC has dependencies on debt financing.
The Debt to Equity ratio of WSC (3.56) is worse than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | 13.82 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.85
WACC9.58%
2.3 Liquidity
WSC has a Current Ratio of 0.83. This is a bad value and indicates that WSC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.83, WSC is doing worse than 80.77% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that WSC may have some problems paying its short term obligations.
The Quick ratio of WSC (0.76) is worse than 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
WSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.26%, which is quite good.
Measured over the past years, WSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.42% on average per year.
The Revenue has decreased by -0.77% in the past year.
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)9.26%
EPS 3Y38.42%
EPS 5YN/A
EPS Q2Q%-20.69%
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y12.71%
Revenue growth 5Y17.63%
Sales Q2Q%-4.71%
3.2 Future
WSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.77% yearly.
WSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.04% yearly.
EPS Next Y-13.76%
EPS Next 2Y2.47%
EPS Next 3Y11.77%
EPS Next 5YN/A
Revenue Next Year-1.28%
Revenue Next 2Y1.88%
Revenue Next 3Y3.04%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WSC is valuated correctly with a Price/Earnings ratio of 16.33.
Based on the Price/Earnings ratio, WSC is valued cheaper than 86.54% of the companies in the same industry.
WSC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.04, the valuation of WSC can be described as correct.
Based on the Price/Forward Earnings ratio, WSC is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
WSC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 15.04 |
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 90.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WSC is valued a bit cheaper than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.11 | ||
| EV/EBITDA | 9.17 |
4.3 Compensation for Growth
WSC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.47%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
WSC has a Yearly Dividend Yield of 1.00%. Purely for dividend investing, there may be better candidates out there.
WSC's Dividend Yield is rather good when compared to the industry average which is at 1.75. WSC pays more dividend than 98.08% of the companies in the same industry.
With a Dividend Yield of 1.00, WSC pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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 2Y2.47%
EPS Next 3Y11.77%
28.9
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners113.34%
Inst Owner Change12.06%
Ins Owners1.18%
Ins Owner Change0.38%
Market Cap5.27B
Analysts74.29
Price Target37.49 (29.72%)
Short Float %8.14%
Short Ratio7.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.79%
Min EPS beat(2)-17.04%
Max EPS beat(2)-0.53%
EPS beat(4)2
Avg EPS beat(4)15.48%
Min EPS beat(4)-17.04%
Max EPS beat(4)58.96%
EPS beat(8)4
Avg EPS beat(8)4.96%
EPS beat(12)7
Avg EPS beat(12)9.71%
EPS beat(16)9
Avg EPS beat(16)6.6%
Revenue beat(2)0
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)-0.22%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)-0.22%
Revenue beat(8)1
Avg Revenue beat(8)-1.7%
Revenue beat(12)2
Avg Revenue beat(12)-2.27%
Revenue beat(16)2
Avg Revenue beat(16)-4.18%
PT rev (1m)-0.81%
PT rev (3m)-11.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 15.04 | ||
| P/S | 2.23 | ||
| P/FCF | 20.11 | ||
| P/OCF | 9.42 | ||
| P/B | 5.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.17 |
EPS(TTM)1.77
EY6.12%
EPS(NY)1.92
Fwd EY6.65%
FCF(TTM)1.44
FCFY4.97%
OCF(TTM)3.07
OCFY10.62%
SpS12.98
BVpS5.55
TBVpS-2.36
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 1.48% | ||
| ROCE | 10.85% | ||
| ROIC | 8.13% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 11.16% | ||
| OM | 24.47% | ||
| PM (TTM) | 0.63% | ||
| GM | 54.28% | ||
| FCFM | 11.07% |
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 | 3.56 | ||
| Debt/FCF | 13.82 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 76.43% | ||
| Cap/Sales | 12.56% | ||
| Interest Coverage | 2.67 | ||
| Cash Conversion | 57.77% | ||
| Profit Quality | 1753.8% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.17 |
F-Score5
WACC9.58%
ROIC/WACC0.85
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)9.26%
EPS 3Y38.42%
EPS 5YN/A
EPS Q2Q%-20.69%
EPS Next Y-13.76%
EPS Next 2Y2.47%
EPS Next 3Y11.77%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y12.71%
Revenue growth 5Y17.63%
Sales Q2Q%-4.71%
Revenue Next Year-1.28%
Revenue Next 2Y1.88%
Revenue Next 3Y3.04%
Revenue Next 5YN/A
EBIT growth 1Y-12.46%
EBIT growth 3Y22.55%
EBIT growth 5Y36.91%
EBIT Next Year73.84%
EBIT Next 3Y25.57%
EBIT Next 5YN/A
FCF growth 1Y-16.27%
FCF growth 3Y4.35%
FCF growth 5YN/A
OCF growth 1Y-25.19%
OCF growth 3Y1.32%
OCF growth 5Y26.61%