Willscot's Overlevered Fleet with Unrentable Units Set to Become a Problem for McGrath Shareholders
over 1 year ago
DF Research
"Underinvestment in fleet flatters FCF but leaves units unrentable. Low 62.5% utilization vs 78% industry. CapEx 22% of revenue vs peers' 60%. Old units used as loan collateral. Mgmt incentivized for buybacks over fleet. 2024 guidance overly optimistic. Debt to spike post-MGRC deal."
Sentiment
bearish
Conviction
Medium
Tier
Trade Call
Related Stocks
Episode Information
Episode:
Willscot's Overlevered Fleet with Unrentable Units Set to Become a Problem for McGrath Shareholders
Source:
DF Research
Published:
July 9, 2024
Idea Type:
Stock Idea