Is WillScot Holdings Corporation (WSC) A Good Stock To Buy Now?

Is WSC a bully banal to buy? We came crossed a bearish thesis connected WillScot Holdings Corporation connected DF Research’s Substack by Keith Dalrymple. In this article, we volition summarize the bears’ thesis connected WSC. WillScot Holdings Corporation's stock was trading astatine $17.11 arsenic of March 27th. WSC’s trailing and guardant P/E were 17.87 and 16.78 respectively according to Yahoo Finance.

Photo by JOSHUA COLEMAN connected Unsplash

WillScot Holdings Corporation provides turnkey impermanent abstraction solutions successful the United States, Canada, and Mexico. WSC is facing a terrible and accelerating fiscal deterioration that challenges immoderate anterior communicative of maturation and stability. The institution reported a 13% year-over-year diminution successful EBITDA, coupled with a 13% driblet successful units connected rent, and wrote disconnected astir 15% of its rental fleet, signaling a cardinal weakening of its halfway operations.

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Management’s earlier 2025 capitalist time guidance, which projected gross maturation and 7-13% adjusted EBITDA enlargement implicit 3 to 5 years, has proven unrealistic, with the underlying currency flows that funded banal buybacks alternatively masking underinvestment successful fleet attraction and renewal.

Units connected rent proceed to decline, adjusted for acquisitions, falling implicit 28,000 connected WSC’s archetypal book, and management’s anticipation of an inflection successful 2H26 faces headwinds from lease roll-offs and anemic smaller operation demand. EBITDA erosion is expected to persist, with TTM EBITDA declining to astir $942 cardinal and leverage rising to 3.8x, good supra the people scope of 2.5x–3.25x.

Fleet impairments, including a $300 cardinal charge, are insufficient, arsenic the aging modular and retention units inactive necessitate important CapEx to conscionable request for caller deployments. WSC besides faces intensifying contention from United Rentals, which is aggressively expanding successful the high-end modular and retention markets, opening 60 caller locations successful 2025 and different 40 successful 2026. This unit is apt to restrict WSC to smaller, little profitable segments and depress pricing.

While the institution avoided near-term default by extending its ABL lenders’ owed day to 2030, this alleviation masks the information that the NPV of WSC’s fleet is beneath its debt, leaving equity worth nether terrible stress. Overall, WSC’s outlook remains highly negative, with declining revenue, rising leverage, continued plus write-offs, and intensifying competitory pressures, making it a bearish concern thesis.