Amerco: To Move Or Not To Move, That Is The Question

Oct. 16, 2021 5:16 AM ETU-Haul Holding Company (UHAL)2 Comments
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Cappuccino Finance
2.93K Followers

Summary

  • UHAL has benefited from recent pandemic-related moves, the migration away from big cities, and shifts to digital nomadic employment.
  • UHAL revenue and profitability surged during the pandemic.
  • They have strong operating cash flow ($1.99 B, TTM) and a pile of cash on their balance sheet ($1.5 B).
  • The strong tailwind is likely to continue for the next couple of years, but beyond that is highly uncertain.
U-Haul

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Investment Thesis

Amerco (NYSE:UHAL) is the largest "do-it-yourself" moving and storage company, more commonly known as U-Haul. I believe UHAL presents a great investment opportunity for a shorter-term timespan (~2 year), but is an uncertain bet over a long time horizon, because:

This article was written by

Cappuccino Finance profile picture
2.93K Followers
Visit me at Cappuccino Finance, I share my top picks (Value, Growth, Dividend & Growth), market outlook, and interesting ideas from super investors, based on my 12 years of experience and knowledge in stock investment and in real estate. I, Justin J. Lee, believe in fundamental analysis and disciplined market research. I have strong quant background with a Ph.D. (University of California, Santa Barbara) in model predictive control and an MBA (Jones School of Business, Rice University). My primary focus is to identify 1) small cap companies with strong fundamentals and growth potential, 2) large cap companies going through temporary set-backs, and 3) stable companies with solid dividend yields and growth potential.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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