Over the past six months, WillScot Mobile Mini’s stock price fell to $35.43. Shareholders have lost 8% of their capital, which is disappointing considering the S&P 500 has climbed by 10.4%. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation.

Following the drawdown, is now an opportune time to buy WSC? Find out in our full research report, it’s free.

Why Are We Positive On WSC?

Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.

1. Skyrocketing Revenue Shows Strong Momentum

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, WillScot Mobile Mini’s sales grew at an incredible 18.2% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers.

2. Outstanding Long-Term EPS Growth

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

WillScot Mobile Mini’s EPS grew at an astounding 69.6% compounded annual growth rate over the last five years, higher than its 18.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

3. Excellent Free Cash Flow Margin Boosts Reinvestment Potential

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

WillScot Mobile Mini has shown terrific cash profitability, putting it in an advantageous position to invest in new products, return capital to investors, and consolidate the market during industry downturns. The company’s free cash flow margin was among the best in the industrials sector, averaging 27.3% over the last five years.

Final Judgment

These are just a few reasons why we're bullish on WillScot Mobile Mini. After the recent drawdown, the stock trades at 17× forward price-to-earnings (or $35.43 per share). Is now the time to initiate a position? See for yourself in our full research report, it’s free.

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