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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Willscot Mobile Mini Holdings Corp. (XNAS:WSC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
WSC
Name:
WILLSCOT MOBILE MINI HOLDINGS CORP. (XNAS:WSC)
Sector:
39.81M
Industry:
Rental & Leasing Services
CEO:
Mr. Bradley Soultz
Total Employees:
4,700
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -113.21% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF WILLSCOT MOBILE MINI HOLDINGS CORP.(WSC) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND RENTAL & LEASING SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
39.95
One Month Price Target:
$40.31
Six Month Price Target :
$42.12
Likely Price in One Year's Time:
Ticker:
$44.3
Likely Trading Range Today Under (Normal Volatility)
$39.8
Price Upper limit ($) :
$40.24
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$37.36
This week:
$34.16
This month :
$28.37
Other Primary facts
Market Cap:
8.57B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
213.70M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
18.93%
-23.27%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$51.94
$46.33
$27.96
$33.57
Medium risk (<10%) entry points
Buy Call
Sell Call
$44.51
Buy Put:
Sell Put:
$43.31
$35.38
$36.59
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
WSC
Sharpe Ratio:
5.13%
Comparison:
WSC, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 71.19% higher than the industry
& ratio is 125.16% higher than the market/S&P 500 average
Average Returns/Yield of
WSC
Daily returns:
0.18%
Weekly returns:
0.88%
Monthly returns:
3.50%
Yearly returns:
31.25%
Comparison of returns:
Average annual returns/yield (last 3 years) is 34.51% above industry average
Classification:
WSC, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.4
Statistical test of Returns:
WSC has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.24%
Weekly Volatility:
7.25%
Monthly Volatility:
14.49%
Yearly Volatility:
50.20%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.73%
Volatility in last five trading days has been -77.51% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.48%
Weekly VaR:
-14.49%
Monthly VaR:
-28.98%
How Much Can the price of
WSC
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-24%
Worst case (decline):
>85%
This translates to price declining to:
$30.52
This translates to price declining to:
$5.99
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
WSC is a 104.51% riskier investment compared to the market/S&P 500 & is 75.21% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -12.00% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
WSC
Beta in relation to market/S&P 500--1.62
Expected beta in 1 year's time:
1.132
Expected beta in 3 year's time:
1.601
Unlevered (debt free) Beta:
0.737
Beta in relation to Nasdaq (XNAS):
1.067
Beta in relation to all global stocks::
1.045
Beta Comparison & Analysis
Beta of competitors/peers::
1.456
Beta is 11.29% higher than peers
Average Industry Beta:
1.628
Beta is -0.49% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
6.59%
Sustainable growth rate is -45.40% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.278
Alpha is 63.96% above industry average alpha yield
Alpha is 1769% higher than market/& is unsustainably high
Analysis of Cost of Capital of
WSC
Equity cost of capital:
0.142
Equity cost of capital is -0.38% below industry mean WACC
Unlevered (without debt) cost of capital:
6.48%
Before-tax cost of debt:
3.90%
After-tax cost of debt:
3.08%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
3.08%
WACC is 10.23% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$9.26
Revenue growth rate per share of (3Y):
4.34
Annual revenue growth rate is 24.98% above the industry average
EPS:
$0.90
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
$0.92
-
-
Debt per share
$13.94
EBITDA per share
$3.30
Valuation Analysis Today of
WSC
P/E Ratio:
34.13
P/E Ratio of Competitors/Peers:
36.54
P/E ratio is -6.60% lower than main peers & is 89.30% higher than the industry
Stock price/value with industry average P/E ratio: $16.23
WSC is 146.20% overvalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
4.32
Price to sales ratio is 129.19% above the industry mean
P/B (Price to book value ratio):
4.34
Price to free cash flow: 43.47
Price to free cash flow ratio is 111.29% higher than the industry
Net income growth rate (3Y):
-268.29%
Net income growth rate is -217.74% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
151.50%
Net debt to equity ratio:
154.66%
Debt to assets ratio:
50.85%
Net debt to assets ratio:
51.91%
Debt-to-asset ratio is -32.08% below industry average
Ability to repay debt:
Interest coverage ratio:
5.93
Interest coverage ratio is -114.92% less than industry average
Looking forward:
Debt growth rate:
9.53%
Annual debt growth is -55% lower than industry average debt growth rate
Debt repayment rate in last quarter: 2.11%
Analysis of Key Statistics
Correlation of price movement with the market:
0.676
Statistical significance of correlation:
WSC has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.547
Stock price is 23.44% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.547
Correlation of price movement with Nasdaq (^IXIC):
0.028
Covariance of price movement with the market:
0.053
Kurtosis
10.615
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.33
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
WSC
Gross Profit Margin Ratio:
206%
Operating Profit Margin Ratio:
19.35%
Operating profit margin is 98.69% higher than the industry
Net Profit Margin Ratio:
206%
Effective Tax Rate:
20.95%
Effective tax rate is -7.88% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
10.52%
Return on equity (ROE) is -121.93% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
3.53%
Return on assets (ROA) is -10.18% lower than the industry
Financial Leverage:
2.0x
Current Ratio:
0.94
Current ratio is -26.57% below industry average
Cash Conversion Cycle (days):
33.6
Cash conversion cycle is 52.83% above industry average
The remaining useful life of property plant & equipment is: 8.2 years
Stock based compensation to net income ratio:
3.09%
In-depth Efficiency Analysis
Revenue generated per employee:
421.0K
Each employee generates -82% less revenue than industry average revenue per employee
EBITDA generated per employee:
150.2K
Each employee generates -100% less EBITDA than industry average revenue per employee
Profit generated per employee:
44.0K
Each employee generates -100% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
8.5K
Each employee generates -96% less free cash flow than industry average revenue per employee
Assets/Capital per employee
1.1M
Each employee generates -96% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
WSC
TETRA TECH, INC. (XNAS:TTEK)
LANDSTAR SYSTEM, INC. (XNAS:LSTR)
SAIA, INC. (XNAS:SAIA)
JETBLUE AIRWAYS CORPORATION (XNAS:JBLU)
ELBIT SYSTEMS LTD (XNAS:ESLT)
CHART INDUSTRIES, INC. (XNYS:GTLS)
AVIS BUDGET GROUP, INC. (XNAS:CAR)
Brighthouse Financial, Inc. (XNAS:BHFAL)
TuSimple Holdings Inc (XNAS:TSP)
Current Analyst Ratings
Strong buy�4%
Buy�4%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
1.98B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
956.83M
1.02B
-
-
545.17M
-
81.77M
626.94M
-
119.01M
325.17M
705.86M
382.90M
206.87M
261.68M
54.81M
206.87M
Statement of Cash Flow
Date:
Period:
81.82M
Differed Income Tax :
12.36M
Stock Based Compensation :
6.40M
Change in Working Capital :
- 16079.00K
Accounts Receivables:
- 12064.00K
Other Working Capital:
13.39M
Other Non-Cash Items:
9.86M
Net Cash Provided by Operating Activities:
145.53M
Investments in PP&E:
- 105717.00K
Net Acquisitions:
- 57457.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
11.32M
-
11.32M
403.15M
39.89M
41.24M
495.60M
3.72B
1.18B
453.79M
-
-
10.49M
5.36B
-
5.86B
135.36M
73.44M
-
172.91M
147.57M
529.27M
2.98B
16.06M
3.36B
-
3.89B
22.00K
- 1539919.00K
- 30824.0K
3.54B
March 31, 2022 at 6:00:00 AM
1.58B
1.97B
5.86B
-
3.05B
3.0B
-
14.81M
- 148360.00K
- 64224.00K
3.31M
- 77708.00K
-
140.21M
1.59M
- 131.00K
- 1378.00K
11.32M
12.70M
145.53M
- 105717.00K
39.81M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
WSC
2023
2024
2025
2026
2027
$43.59
$48.33
$53.60
$59.43
$65.90