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WillScot Mobile Mini Holdings (WillScot Mobile Mini Holdings) Predictability Rank


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What is WillScot Mobile Mini Holdings Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

WillScot Mobile Mini Holdings Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%1.1%3.1%


















For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-Star (non-predictable)Average among all
% Out of All 2403 Stocks 3.3% 2.9% 3.7% 3.3% 3.3% 3.7% 3.3% 76.3% 100%
% that are in Loss (10y) 3% 10% 8% 9% 11% 18% 16% 45% 37%
Average Gain (10y) 364.6% 330.9% 278.0% 235.1% 243.5% 227.8% 154.8% 100.0% 138.1%
Median Gain (10y) 238.5% 193.5% 171.0% 159.0% 132.5% 113.5% 87.0% 13.0% 39.0%
Maximum Gainer 2228.0% 2547.0% 2452.0% 2852.0% 2432.0% 1892.0% 1807.0% 11483.0% 11483.0%
Maximum Loser -82.0% -53.0% -67.0% -100.0% -83.0% -100.0% -78.0% -100.0% -100.0%
Annualized Average Gain 15.4% 14.6% 13.2% 12.0% 12.2% 11.7% 9.1% 6.7% 8.4%
Annualized Median Gain 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%
















For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

WillScot Mobile Mini Holdings Predictability Rank Related Terms

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WillScot Mobile Mini Holdings (WillScot Mobile Mini Holdings) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » WillScot Mobile Mini Holdings Corp (NAS:WSC) » Definitions » Predictability Rank
Comparable Companies
CAR UHAL R AL FTAI GATX HRI HTZ MGRC AER URI LSE:AHT BSP:RENT3 XPAR:ALD TSX:EFN TSE:8439 HKSE:02588 XTER:SIX2 TSE:8424 SZSE:000415
Traded in Other Exchanges
WS11:Germany
Address
4646 E Van Buren Street, Suite 400, Phoenix, AZ, USA, 85008
Website
https://www.willscotmobilemini.com
WillScot Mobile Mini Holdings Corp is a business services provider specializing in innovative flexible work space and portable storage solutions. The company's segment includes Modular Solutions and Storage Solutions. It generates maximum revenue from the Modular Solutions segment. The company serves furniture rental, transportation and logistics, facility management, job site services, commercial storage, and commercial real estate sector. Geographically, it derives a majority of its revenue from the United States.
Executives
Bradley Lee Soultz director, officer: Chief Executive Officer 901 S. BOND STREET, SUITE 600, BALTIMORE MD 21231
Natalia Johnson director C/O PUBLIC STORAGE, 701 WESTERN AVENUE, GLENDALE CA 91201
Felicia Gorcyca officer: Chief Human Resources Officer 4800 N. SCOTTSDALE ROAD, SUITE 6000, SCOTTSDALE AZ 85251
Sally J Shanks officer: Chief Accounting Officer 901 S. BOND STREET, SUITE 600, BALTIMORE MD 21231
Jeffrey Sagansky director, 10 percent owner, officer: President & CEO 1450 2ND STREET, SUITE 247, SANTA MONICA CA 90401
Erika T Davis director
Graeme Parkes officer: Chief Information Officer 4646 E. VAN BUREN STREET, SUITE 400, PHOENIX AZ 85008
Erik Olsson director C/O RSC HOLDINGS INC., 6929 E. GREENWAY PARKWAY, SCOTTSDALE AZ 85254
Hezron T. Lopez officer: V.P.,Gen Counsel, Corp. Sec. 855 EAST MAIN AVE, ZEELAND MI 49464
Rebecca L Owen director 1750 H STREET, SUITE 500, COLUMBIA EQUITY TRUST, INC., WASHINGTON DC 20006
Christopher J Miner officer: SVP, GC & Secretary 7420 SOUTH KYRENE ROAD SUITE 101, TEMPE AZ 85253
Michael W Upchurch director KANSAS CITY SOUTHERN, PO BOX 219335, KANSAS CITY MO 64121
Sapphire Holding S.a R.l. 10 percent owner C/O TDR CAPITAL LLP, 20 BENTINCK STREET, LONDON X0 W1U 2EU
Stephen Robertson director, 10 percent owner 20 BENTINCK STREET, LONDON X0 W1U 2EU
Mark S. Bartlett director 4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214