Is UHAL a good stock to buy? We came across a bullish thesis on U-Haul Holding Company on Valueinvestorsclub.com by durableadvantage. In this article, we will summarize the bulls’ thesis on UHAL. U-Haul Holding Company’s share was trading at $51.60 as of May 1st. UHAL’s trailing and forward P/E were 109.79 and 67.11 respectively according to Yahoo Finance.
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U-Haul Holding Company operates as a do-it-yourself moving and storage operator for household and commercial goods in the United States and Canada. UHAL is currently at a cyclical trough, with multiple converging factors suggesting a meaningful earnings and valuation inflection that could drive 50–100% upside in the stock. The company’s recent underperformance has been driven by depressed moving segment earnings and concerns around heavy growth capex, but both dynamics are now reversing.
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Improving housing activity, supported by lower mortgage rates and stabilizing home prices, is beginning to lift demand, while a 20% decline in cargo van prices is set to reduce fleet costs and depreciation. Management has also signaled a clear pivot toward returns and cash flow, cutting fleet and real estate capex by 20–40%, which should materially improve free cash generation. The stock trades at 9–11x normalized economic EPS of $4.20–$5.00, or 8–9x when adjusting for development spend, with a credible path from $0.90 current EPS to normalized levels.
This upside is driven by cyclical recovery in moving earnings, normalization of depreciation and resale dynamics, and stabilization of a rapidly expanding self-storage portfolio, which continues to mature with embedded high-margin revenue growth. Importantly, the self-storage segment alone covers nearly the entire enterprise value, providing strong downside protection at 1.15x book value, while the dominant moving business is effectively undervalued.
With disciplined long-term ownership under CEO Joe Shoen and increasing focus on shareholder value, U-Haul presents a compelling asymmetric opportunity with limited downside and substantial upside as earnings and cash flow recover.
Previously, we covered a bullish thesis on Public Storage (PSA) by Antoni Nabzdyk in December 2024, which highlighted the company’s market dominance, strong profitability, and undervaluation within the self-storage sector. PSA’s stock price has appreciated by approximately 1.15% since our coverage. durableadvantage shares a similar view but emphasizes on cyclical recovery, cost normalization, and earnings inflection driving upside in U-Haul.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
