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WillScot Holdings Corp

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WillScot Holdings Corp AI Insights

Informational only. Not investment advice.
As of 2025-12-12

Snapshot

  • Debt/equity of 3.7x with 3.9B total debt vs 1.1B equity; interest expense TTM of 235M consumes 77% of pretax income[Debt to Equity]
  • Gross margin TTM 52.4% vs industry median 38.3% - 14pp advantage from modular space rental pricing power[Gross Margin TTM]
  • Tangible book value negative (-432M) with goodwill at 119% of equity - acquisition-heavy balance sheet[Tangible Book Value]

Watch Triggers

  • Gross Profit 1yr Growth: Continues negative beyond -15%Current -12.4% YoY decline could accelerate if construction/industrial demand weakens further
  • Interest Expense TTM: Exceeds 250M or coverage falls below 1.5xAt 235M already consuming 77% of pretax income; rate increases compress equity returns
  • Free Cash Flow TTM: Falls below 350MDeleveraging thesis depends on sustained FCF; decline signals balance sheet stress

Bull Case

Premium gross margins (52% vs 38% industry) with asset-light rental model generates 452M FCF TTM despite heavy debt load

Gross Margin TTMFree Cash Flow TTM

P/E of 16.4x below industry median 18x despite superior operating margin (23.7% vs 22.2% median)

PE RatioOperating Margin TTM

Bear Case

Leverage at 3.7x D/E with 235M annual interest; gross profit declined 12.4% YoY signaling demand weakness

Debt to EquityGross Profit 1yr Growth

5-year EPS CAGR of -7.8% vs industry +8% median; negative tangible equity limits financial flexibility

EPS Growth 5yrTangible Book Value

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
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Forward Thesis

FCF generation to accelerate deleveraging, reducing interest burden by 15-20% over 1-3 years

1-3ymed
  • 452M FCF TTM on 2.3B revenue = 19.5% FCF margin
  • 782M operating cash flow provides debt paydown capacity
  • Capex intensity manageable at 14% of revenue
FCF TTM 452M vs 235M interest = 1.9x coverageOperating margin 23.7% supports cash generationNet debt 3.6B declining from FCF allocation

Valuation Context

Caveats

Data Partners
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Fundamental company data provided by Morningstar, updated daily.

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