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WillScot Mobile Mini (WSC) Buys Storage Services Companies

WillScot Mobile Mini Holdings Corp. WSC acquired three regional storage service companies — American Mobile Leasing, Inc., Equipe Container Services, d/b/a Moveable Container Storage and Saf-T-Box, LP. The company funded the transaction through cash on hand and borrowings under revolving credit agreement.

With the addition of these storage services companies, WillScot Mobile Mini will now hold additional 11,000 storage units in its existing U.S. markets.

With respect to this, CEO of WillScot Mobile Mini, Brad Soultz, stated, “We are excited to welcome the employees of American Mobile Leasing, Equipe, and Saf-T-Box to the WillScot Mobile Mini family. Each company is a highly respected peer and strengthens our position in key markets across the United States. These acquisitions are consistent with our growth strategy, allowing us to extend our ‘Ready to Work’ value proposition to new customers and further expand our industry leading fleet availability and service capabilities.”

WillScot Mobile Mini intends to invest more in such businesses, by better implementation of technology as well as commercial and operational best practices to boost returns.

In July 2021, WillScot completed its merger with Mobile Mini, Inc. and started operating as WillScot Mobile Mini.

Price Performance

Shares of WillScot Mobile Mini have surged 89.8% in the past year compared with the Zacks Furniture industry’s 25.4% rally. The company is benefiting from continuous product innovation, solid segmental results as well as transformation of the legacy WillScot business onto Mobile Mini's SAP platform.

During the second quarter of 2021, the company’s average modular space units on rent increased 23,372 units or 26.8% year over year. Average portable storage units on rent increased 135,867 units year over year. In both instances, the upside was driven by the Mobile Mini merger. Also, average portable storage monthly rental rate increased $19 or 15.8% to $139 driven by the accretive impact of higher rates from the Mobile Mini portable storage fleet.

Furthermore, improved housing market fundamentals in the United States make the near-term outlook of the company encouraging. Historically-low mortgage rates have been driving new home sales, which in turn will drive demand for furniture products in the near term.


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Zacks Rank & Key Picks

WillScot Mobile Mini carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Consumer Discretionary sector include Adtalem Global Education Inc. ATGE, Hasbro, Inc. HAS and Leggett & Platt, Incorporated LEG, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Adtalem has a trailing four-quarter earnings surprise of 33.2%, on average.

Hasbro has a three-five-year earnings per share growth rate of 17.7%.

Leggett 's earnings for 2021 are expected to rise 33.8%.


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