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
WSC had positive earnings in the past year.
In the past year WSC had a positive cash flow from operations.
Each year in the past 5 years WSC has been profitable.
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 has a worse Return On Equity (1.48%) than 62.75% of its industry peers.
WSC's Return On Invested Capital of 8.13% is fine compared to the rest of the industry. WSC outperforms 68.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WSC is significantly below the industry average of 16.96%.
| 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's Profit Margin of 0.63% is in line compared to the rest of the industry. WSC outperforms 43.14% of its industry peers.
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 98.04% of its industry peers.
WSC's Operating Margin has improved in the last couple of years.
WSC has a Gross Margin of 54.28%. This is amongst the best in the industry. WSC outperforms 98.04% of its industry peers.
WSC's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WSC is destroying value.
The number of shares outstanding for WSC has been reduced compared to 1 year ago.
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 1.14, we must say that WSC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.14, WSC is not doing good in the industry: 68.63% of the companies in the same industry are doing better.
The Debt to FCF ratio of WSC is 13.82, which is on the high side as it means it would take WSC, 13.82 years of fcf income to pay off all of its debts.
WSC has a Debt to FCF ratio of 13.82. This is in the lower half of the industry: WSC underperforms 60.78% of its industry peers.
A Debt/Equity ratio of 3.56 is on the high side and indicates that WSC has dependencies on debt financing.
With a Debt to Equity ratio value of 3.56, WSC is not doing good in the industry: 80.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | 13.82 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.82
WACC9.87%
2.3 Liquidity
A Current Ratio of 0.83 indicates that WSC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.83, WSC is doing worse than 78.43% of the companies in the same industry.
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.
WSC has a worse Quick ratio (0.76) than 76.47% 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.
Looking at the last year, WSC shows a decrease in Revenue. The Revenue has decreased by -0.77% in the last year.
Measured over the past years, WSC shows a quite strong growth in Revenue. The Revenue has been growing by 17.63% on average per year.
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
Based on estimates for the next years, WSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.65% on average per year.
WSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
EPS Next Y-13.76%
EPS Next 2Y2.56%
EPS Next 3Y12.65%
EPS Next 5YN/A
Revenue Next Year-1.24%
Revenue Next 2Y1.94%
Revenue Next 3Y3.25%
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
With a Price/Earnings ratio of 15.44, WSC is valued correctly.
Based on the Price/Earnings ratio, WSC is valued cheaper than 88.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. WSC is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.19, WSC is valued correctly.
WSC's Price/Forward Earnings ratio is rather cheap when compared to the industry. WSC is cheaper than 80.39% of the companies in the same industry.
WSC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.19 |
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 94.12% of the companies listed in the same industry.
WSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSC is cheaper than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.08 | ||
| EV/EBITDA | 8.9 |
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
WSC has a yearly dividend return of 0.95%, which is pretty low.
The stock price of WSC dropped by -22.54% 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.
WSC's Dividend Yield is rather good when compared to the industry average which is at 1.72. WSC pays more dividend than 94.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, WSC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 2Y2.56%
EPS Next 3Y12.65%
27.32
-0.07 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners100.24%
Inst Owner Change12.06%
Ins Owners1.04%
Ins Owner Change0.14%
Market Cap5.00B
Analysts77.14
Price Target37.8 (38.36%)
Short Float %8.05%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)-11.04%
PT rev (3m)-15.79%
EPS NQ rev (1m)-2.64%
EPS NQ rev (3m)-16.01%
EPS NY rev (1m)-1.55%
EPS NY rev (3m)-13.62%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-3.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.19 | ||
| P/S | 2.11 | ||
| P/FCF | 19.08 | ||
| P/OCF | 8.93 | ||
| P/B | 4.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.9 |
EPS(TTM)1.77
EY6.48%
EPS(NY)1.92
Fwd EY7.05%
FCF(TTM)1.43
FCFY5.24%
OCF(TTM)3.06
OCFY11.19%
SpS12.94
BVpS5.53
TBVpS-2.35
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 | 1.14 |
F-Score5
WACC9.87%
ROIC/WACC0.82
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-1.24%
Revenue Next 2Y1.94%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
EBIT growth 1Y-12.46%
EBIT growth 3Y22.55%
EBIT growth 5Y36.91%
EBIT Next Year74.17%
EBIT Next 3Y25.85%
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%