WILLSCOT HOLDINGS CORP (WSC) Stock Fundamental Analysis
NASDAQ:WSC - Nasdaq - US9713781048 - Common Stock - Currency: USD
WSC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 51 industry peers in the Construction & Engineering industry. WSC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
WSC had a positive operating cash flow in the past year.
WSC had positive earnings in each of the past 5 years.
In the past 5 years WSC always reported a positive cash flow from operatings.
1.2 Ratios
WSC has a worse Return On Assets (0.25%) than 64.71% of its industry peers.
WSC's Return On Equity of 1.48% is on the low side compared to the rest of the industry. WSC is outperformed by 62.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.13%, WSC is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WSC is significantly below the industry average of 16.60%.
| 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
WSC has a Profit Margin (0.63%) which is in line with its industry peers.
In the last couple of years the Profit Margin of WSC has declined.
The Operating Margin of WSC (24.47%) is better than 98.04% of its industry peers.
In the last couple of years the Operating Margin of WSC has grown nicely.
The Gross Margin of WSC (54.28%) is better than 98.04% 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
WSC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WSC has less shares outstanding
The number of shares outstanding for WSC has been increased compared to 5 years ago.
WSC has a worse debt/assets ratio than last year.
2.2 Solvency
WSC has an Altman-Z score of 1.12. This is a bad value and indicates that WSC is not financially healthy and even has some risk of bankruptcy.
WSC has a worse Altman-Z score (1.12) than 68.63% of its industry peers.
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 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | 13.82 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.85
WACC9.52%
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.
WSC's Current ratio of 0.83 is on the low side compared to the rest of the industry. WSC is outperformed by 80.39% of its industry peers.
WSC has a Quick 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.
With a Quick ratio value of 0.76, WSC is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.26% over the past year.
The Earnings Per Share has been growing by 38.42% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.77% in the past year.
The Revenue has been growing by 17.63% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 12.65% on average over the next years. This is quite good.
Based on estimates for the next years, WSC will show a small growth in Revenue. The Revenue will grow by 3.04% on average per year.
EPS Next Y-13.76%
EPS Next 2Y2.56%
EPS Next 3Y12.65%
EPS Next 5YN/A
Revenue Next Year-1.28%
Revenue Next 2Y1.88%
Revenue Next 3Y3.04%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
A Price/Earnings ratio of 14.95 indicates a correct valuation of WSC.
Based on the Price/Earnings ratio, WSC is valued cheaper than 92.16% of the companies in the same industry.
WSC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.75, WSC is valued correctly.
WSC's Price/Forward Earnings ratio is rather cheap when compared to the industry. WSC is cheaper than 86.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WSC to the average of the S&P500 Index (22.41), we can say WSC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 13.75 |
4.2 Price Multiples
92.16% of the companies in the same industry are more expensive than WSC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WSC is valued a bit cheaper than the industry average as 68.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.42 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
WSC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WSC's earnings are expected to grow with 12.65% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.56%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, WSC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.81, WSC pays a better dividend. On top of this WSC pays more dividend than 98.04% of the companies listed in the same industry.
With a Dividend Yield of 1.01, WSC pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
WSC is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y2.56%
EPS Next 3Y12.65%
26.47
-0.24 (-0.9%)
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 Change0.36%
Market Cap4.83B
Analysts74.29
Price Target37.49 (41.63%)
Short Float %8.02%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)-14.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.62%
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 | 14.95 | ||
| Fwd PE | 13.75 | ||
| P/S | 2.04 | ||
| P/FCF | 18.42 | ||
| P/OCF | 8.63 | ||
| P/B | 4.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.71 |
EPS(TTM)1.77
EY6.69%
EPS(NY)1.92
Fwd EY7.27%
FCF(TTM)1.44
FCFY5.43%
OCF(TTM)3.07
OCFY11.59%
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 | 1.12 |
F-Score5
WACC9.52%
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 2Y2.56%
EPS Next 3Y12.65%
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%