Amerco: An Effective Monopoly To Hold For The Next Decade

Aug. 26, 2022 5:09 AM ETU-Haul Holding Company (UHAL)11 Comments
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Confoundedinterest
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Summary

  • AMERCO has built itself into a powerful monopoly in the self-moving segment. This advantage, in my opinion, will be nearly impossible to overcome for competitors.
  • The valuation of the company is quite reasonable and when looking at the massive and underappreciated storage business, the future looks very bright indeed.
  • The self-storage business, one of the largest in the country, is basically a throw in at current valuation levels and is nearing the critical mass of generating free cash flow.

A fleet U-Haul cargo vans

sanfel/iStock Editorial via Getty Images

We all know the brand that is U-Haul. Each of us at some point in our lives have likely slid onto a seat of an uncomfortably big truck that we are not at all qualified to

Locations

U-HAUL

moving revenue

U-Haul

Storage revenue

U-Haul

Storage pipeline

U-Haul

Capex

U-Haul

Debt maturity

U-Haul

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This article was written by

Confoundedinterest profile picture
7.65K Followers
I work in the financial and property management industry for a well known, publicly traded "mini Berkshire" Insurance company. I focus on portfolio structure, value, reasonably priced growth, tech and biotech spaces. I passed the series 6 and 7 exams at age 18 but do not at this time have active licenses. I am not a licensed financial advisor and do not give out or publish investment advice. Articles I write are my opinion only and are not solicitations, please seek guidance from a licensed financial advisor before investing in any security. Opinions expressed in my articles are my own and do not reflect or indicate any positions or opinions held of my primary employer.

Disclosure: I/we have a beneficial long position in the shares of UHAL either through stock ownership, options, or other derivatives. 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.

Additional disclosure: "I am not a licensed financial advisor. This is not a solicitation to buy or sell a specific security nor is it to be construed as investment advice, please contact your licensed financial and tax advisor for advice to your specific situation.
This article is an opinion piece only and should not be construed as fact or be represented as such, please perform your own due diligence prior to investing in this or any equity.”

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