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Mobile Mini, Inc. (MINI)

Introduction:

Mobile Mini Inc (NASDAQ:MINI) was founded in 1983 and is headquartered in Tempe, Arizona. The Company provides portable storage solutions through its lease fleet of portable storage units in North America, the United Kingdom, and the Netherlands. It offers a range of portable storage products in varying lengths and widths, with various features, such as its patented locking systems, premium doors, and electrical wiring and shelving. The Company operates various branches in southwestern and western states. Mobile Mini’s customers include retailers, small and large businesses, construction companies, schools, government entities, and homeowners.

Stock Snapshot:

As of Oct 18’ 2012, the stock for Mobile Mini Inc (NASDAQ:MINI) closed at USD 16.90, representing a market capitalization of USD 755.49 million. The stock has achieved an average volume of 204,695 shares over the last three months, and has traded between a range of USD 12.60 to USD 23.08 over the last 52 weeks. The stock has been trading at a P/E ratio of 23.4, a P/S ratio of 2.09, and a P/B ratio of 1.0.

Competitor Analysis:

DS Smith plc (LON:SMDS), through its subsidiaries, engages in the supply of recycled packaging for consumer goods in the United Kingdom and internationally. As of Oct 18’ 2012, the stock has been trading at GBP209.7 with a total market capitalization of GBP 1.93 billion. The stock has been trading at a P/E ratio of 1889.19, a P/S ratio of 98.46 and a P/B ratio of 182.97.

Smurfit Kappa Group Plc (LON:SKG), together with its subsidiaries, manufactures, distributes, and sells paper-based packaging products in Europe and Latin America. As of Oct 18’ 2012, the stock has been trading at EUR 8.49, with a total market capitalization of EUR 1.89 billion. The stock has been trading at a P/E ratio of 7.64, a P/S ratio of 0.26, and a P/B ratio of 0.89.

Financial Analysis:

Revenue:

For 6MFY12, total revenues were recorded at USD 182.1 million, compared to USD 173.4 million for the corresponding period last year; registering a YoY increase of 5%. Revenues from the leasing sector were registered at USD 160.5 million, as compared to USD 151.1 million for the corresponding period last year, recording a YoY increase of 6.2% mainly due to higher trucking revenues, increasing rental rates, and  product mix. The leasing business continued to be a prominent part of the company’s business, as it comprised 88.1% of total revenues for 6MFY12, as compared to 87.1% for the corresponding period last year.

Gross Margin:

For 6MFY12, the Company reported a gross margin of 39.3%, as compared to 37.4% for 6MFY11, which was mainly due to higher average selling prices of products during 6MFY12, as compared to the corresponding period last year.

Earnings Analysis:

For 6MFY12 the company reported net income of USD 12.4 million, as compared to USD 12.1 million for the corresponding period last year, representing a YoY increase of 2.5%.

Financial Position:

As of 30th June 2012, the Company had USD 10.41 million in cash balances, representing a cash value per share of 0.23. The Company also had total debt of USD 684.41 million resulting in a debt to equity ratio of 87.75

Factors to Watch Out:

  • Very high Leverage ratio!
  • Leadership transition going on which adds to uncertainty!