Rental and leasing services providers have gained traction in the wake of an effective COVID-19 vaccination drive and the steady revival of economic activities over the past year. Furthermore, with the growing number of start-ups, the industry is witnessing rising revenues. Last year, new business applications in the United States were the highest they’ve been in the past 15 years.
Analysts expect the global leasing market to grow at an 8% CAGR to $1836.74 billion in 2025. In addition, the expanding landscape of international trade and rapid urbanization worldwide should help the rental and leasing industry grow over the next few years.
UHAL in Reno, Nev., is a do-it-yourself moving and storage operator for household and commercial goods in the United States and Canada. The company operates with more than 23,000 locations across 50 states and 10 Canadian provinces.
Last December, UHAL revealed that it will develop a new U-Haul® retail, moving, and self-storage facility at an underdeveloped site in Los Lunas by 2023. Due to a lack of high-quality clean storage systems in the neighborhood, this facility should be in demand. Moreover, its opening will mark the 15th U-Haul-owned and -operated facility in New Mexico.
Also, last December, UHAL announced that it is now serving do-it-yourself movers at the historic American Cannery Co. building located at 720 Iwilei Road–the fourth full-service center on the island of Oahu. This move is representative of the company’s expanding footprint.
UHAL’s total revenue increased 25.6% year-over-year to $1.66 billion in the second quarter, ended September 30. Its earnings from operations grew 47.7% from their year-ago value to $578.70 million, while its earnings available to common shareholders improved 53.9% year-over-year to $409.90 million. Its EPS increased 53.9% from its year-ago value to $20.90.
A $1.33 billion consensus revenue estimate for its fiscal third quarter, ending December 2021, indicates a 13.8% increase from the same period last quarter. Analysts expect UHAL’s EPS to come in at $15.05 for the same quarter, indicating a 61.3% rise year-over-year. The company has a notable earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.
The stock has gained 37.7% in price over the past year and 15.8% over the past six months to close its last trading session at $647.23.
UHAL’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each other weighted to an optimal degree.
UHAL is rated A in Sentiment and B in Growth, Quality, and Stability. Within the B-rated Auto Dealers & Rentals industry, it is ranked #6 of the 26 stocks.
To see additional POWR Ratings for Value, Momentum for UHAL, click here.
Triton International Ltd. (TRTN)
TRTN engages in acquiring, leasing, re-leasing, and selling various intermodal containers and chassis to shipping lines and freight forwarding companies, and manufacturers. It operates in two segments, Equipment Leasing and Equipment Trading. TRTN is headquartered in Hamilton, Bermuda.
On January 11, TRTN priced $600 million of 3.250% senior notes due 2032 at99.600%, with its subsidiaries, Triton Container International Limited and TAL International Container Corporation, as co-issuers. The company expects to use the net proceeds from the offering to repay borrowings under its revolving credit facility.
TRTN declared a 14% increase in its quarterly common share dividend to $0.65 per share, which was payable on Dec. 23, 2021, to shareholders of record as of Dec. 9, 2021.
TRTN’s total leasing revenues increased 22.1% year-over-year to $400.19 million in the third quarter, ended September 30. Its operating income grew 54% from its year-ago value to $244.48 million. In addition, its adjusted net income improved 13.6% year-over-year to $163.76 million over the period. And its adjusted EPS increased 13.6% from its year-ago value to $2.43.
The Street expects the company’s revenue to come in at $422.52 million for its fiscal fourth quarter, ending December 2021, indicating a 25.3% increase from the same period last year. TRTN’s EPS is expected to increase 48.1% year-over-year to $2.52. The company also has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of the trailing four quarters.
Over the past month, the stock has gained 12.6% in price to close the last trading session at $62.82. TRTN shares have gained 24.9% over the past year.
It is no surprise that TRTN has an overall B rating, which translates to Buy in our proprietary rating system. TRTN is rated an A in Sentiment. Within the Shipping industry, it is ranked #8 of 46 stocks.
Click here to see additional POWR Ratings for Growth, Value, Momentum, Stability, and Quality for TRTN.
Ryder System, Inc. (R)
Miami-based R is a leading logistics and transportation company that provides supply chain, transportation, lease, and rental services in the United States, Mexico, Canada, and the U.K. It operates nearly 23,5000 commercial vehicles and more than 300 warehouses.
On January 4, R announced the completion of its acquisitions of Whiplash, a national provider of omnichannel fulfillment and logistics services, and Midwest Warehouse & Distribution System (Midwest), a provider of warehousing, distribution, and transportation solutions. These acquisitions should boost R’s supply chain solutions, expand its e-commerce fulfillment network, and add multi-client warehousing capabilities.
Last month, the company established a new $1.4 billion five-year global revolving credit facility, which includes 11 global institutions, and will expire on Dec. 14, 2026. “Execution of this new credit agreement further solidifies Ryder’s strong liquidity position for the next five years,” John Diez, R’s chief financial officer, explained.
R’s total revenues increased 14.3% year-over-year to $2.46 billion in the third quarter, ended Sept. 30. Its net earnings grew 285.8% from its year-ago value to $138.10 million. The company’s non-GAAP EPS increased 110.7% year-over-year to $2.55.
Analysts’ $2.48 billion revenue estimate for its fiscal fourth quarter, ending December 2021, indicates a 12.1% increase year-over-year. R’s EPS is expected to increase 198.5% from the prior-year quarter to $2.48. Moreover, R has topped the consensus EPS estimates in three out of the trailing four quarters.
Over the past year, the stock has gained 13% in price to close its last trading session at $77.13.
R’s POWR Ratings reflect its solid fundamentals. The company has an overall A rating of A, which translates to Strong Buy in our proprietary rating system.
R is also rated an A in Growth and Momentum and B in Value. Within the B-rated Industrial-Services industry, it is ranked #8 of 90 stocks.
In addition to the POWR Ratings grades highlighted, you can see the R’s ratings for Sentiment, Quality, and Stability here.
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UHAL shares were unchanged in premarket trading Thursday. Year-to-date, UHAL has declined -10.88%, versus a -4.47% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...
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