WSC

WillScot Mobile Mini Holdings Corp.

Industrial/Transportation


Presented:07/14/2020
Price:$12.32
Cap:$1.36B
Current Price:$36.29
Cap:$6.84B

Presented

Date07/14/2020
Price$12.32
Market Cap$1.36B
Ent Value$2.94B
P/E RatioN/A
Book Value$5.60
Div Yield0%
Shares O/S110.56M
Ave Daily Vol1,564,110
Short Int10.29%

Current

Price$36.29
Market Cap$6.84B
WillScot Mobile Mini Holdings Corp. provides modular and portable storage services. The firm offers furniture rental, transportation and logistics, storage & facilities services and commercial real estate services. It offers turnkey office space and storage solutions for temporary applications in the commercial and industrial, construction, retail, education, health care, government, transportation, security and energy sectors. The company was founded on November 29, 2017 and is headquartered in Phoenix, AZ.

Publicly traded companies mentioned herein: Pure Storage Inc (PSTG), WillScot Mobile Mini Holdings Corp (WSC), S&P Global Inc (SPGI)

Highlights

The presenter is long shares of WillScot Mobile Mini Holdings Corp (WSC), the “800 pound gorilla” in leasing modular space and portable storage. On July 1st, WillScot completed an all stock merger with its biggest competitor Mobile Mini. The combined entity has dominant market share in both segments, north of 40% in modular and over 20% in portable storage. It was also announced that Mobile Mini would be removed from the S&P 600 Index. This announcement resulted in non-fundamental index selling, causing shares of WSC to underperform the market by over 20%. The presenter believes this underperformance has created a buying opportunity for a company with a solid business, pricing tailwinds, a favorable regulatory environment, and the potential to create a monopoly within its space. For 2022, he is modeling $700MM in EBITDA up from $600MM this year. He sees this as somewhat conservative, noting that WSC could easily beat and is well covered via merger synergies and pricing tailwinds. Historically, the blended average multiple of the two companies has been 10x EBITDA, which would equate to $22/share or 80% upside. 

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