WillScot Holdings Corp (WSC) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

WillScot's EV/EBITDA of 28.3 is above its 5-year median of 25.0.

P/B above the industry

WillScot's price-to-book of 3.80 is above the Miscellaneous Equipment Rental and Leasing median of 2.93.

Trading below fair value

The share price of $20.14 is below our fair value estimate of $28.19.

Margin of safety over 20%

The price is 28.5% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 0.4% over the last twelve months; the Miscellaneous Equipment Rental and Leasing median is 9.4%.

Guidance raised

WillScot raised its 2026 Net CAPEX outlook on Aug 6, 2026.

Gross margin slipping

Gross margin was 50.8% over the last twelve months, against 52.4% a year earlier.

Return on equity under 15%

Return on equity was -6.0% over the last twelve months and averaged 11.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 2.7%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

WillScot's return on equity of -6.0% is below the Miscellaneous Equipment Rental and Leasing median of 12.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -2.6% over the last twelve months, against a 5-year average of 8.9%.

Net margin below the industry

WillScot's net margin of -2.6% is below the Miscellaneous Equipment Rental and Leasing median of 5.4%.

High debt

Debt is 360% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 120% five years ago to 360%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 20.6% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.78 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.73; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

WillScot paid dividends worth 1.4% of the share price over the last twelve months.

Yield below Treasuries

The 1.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; WillScot yields 1.4%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 7.4% of free cash flow.