Advertisement
UK markets open in 5 hours 40 minutes

  • NIKKEI 225

    38,016.78
    -443.30 (-1.15%)
     

  • HANG SENG

    17,201.27
    +372.34 (+2.21%)
     

  • CRUDE OIL

    82.65
    -0.16 (-0.19%)
     

  • GOLD FUTURES

    2,329.20
    -9.20 (-0.39%)
     

  • DOW

    38,460.92
    -42.77 (-0.11%)
     

  • Bitcoin GBP

    51,728.82
    -1,814.64 (-3.39%)
     

  • CMC Crypto 200

    1,394.81
    -29.29 (-2.06%)
     

  • NASDAQ Composite

    15,712.75
    +16.11 (+0.10%)
     

  • UK FTSE All Share

    4,374.06
    -4.69 (-0.11%)
     
Money:

The five essential pieces of financial paperwork you must never lose

Mislaying key documents can cause real headaches, so it’s worth tracking down these most commonly-lost bits of paperwork

When Should You Buy WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)?

Simply Wall St
·3-min read

While WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$53.05 at one point, and dropping to the lows of US$43.71. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether WillScot Mobile Mini Holdings' current trading price of US$44.86 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at WillScot Mobile Mini Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for WillScot Mobile Mini Holdings

What's The Opportunity In WillScot Mobile Mini Holdings?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.8% below my intrinsic value, which means if you buy WillScot Mobile Mini Holdings today, you’d be paying a fair price for it. And if you believe the company’s true value is $46.62, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since WillScot Mobile Mini Holdings’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will WillScot Mobile Mini Holdings generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 57% over the next couple of years, the future seems bright for WillScot Mobile Mini Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in WSC’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

ADVERTISEMENT

Are you a potential investor? If you’ve been keeping an eye on WSC, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing WillScot Mobile Mini Holdings at this point in time. While conducting our analysis, we found that WillScot Mobile Mini Holdings has 1 warning sign and it would be unwise to ignore this.

If you are no longer interested in WillScot Mobile Mini Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here