Analysts Expect Breakeven For WillScot Corporation (NASDAQ:WSC)
WillScot Corporation’s (NASDAQ:WSC): WillScot Corporation, through its subsidiaries, provides various specialty rental services in the United States, Canada, and Mexico. With the latest financial year loss of -US$30.94M and a trailing-twelve month of -US$49.71M, the US$1.10B market-cap amplifies its loss by moving further away from its breakeven target. Many investors are wondering the rate at which WSC will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for WSC.
View our latest analysis for WillScot
Expectation from analysts is WSC is on the verge of breakeven. They expect the company to post a final loss in 2017, before turning a profit of US$15.79M in 2018. WSC is therefore projected to breakeven around a few months from now. How fast will WSC have to grow each year in order to reach the breakeven point by 2018? Working backwards from analyst estimates, it turns out that they expect the company to grow 103.72% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving WSC’s growth isn’t the focus of this broad overview, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I would like to bring into light with WSC is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and WSC has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of WSC to cover in one brief article, but the key fundamentals for the company can all be found in one place – WSC’s company page on Simply Wall St. I’ve also put together a list of important aspects you should look at:
Valuation: What is WSC worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether WSC is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on WillScot’s board and the CEO’s back ground.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
