Mobile Mini, Inc. (MINI)
Introduction:
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:
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!
