U-Haul Holding stands out among businesses in the do-it-yourself moving industry with its unparalleled competitive position and extensive fleet of trucks operating nationwide.
When compared to its competitors such as Penske and Budget, U-Haul’s market dominance becomes evident. With a network of 23,000 locations across the United States and Canada, along with nearly 200,000 rental trucks, it enjoys the benefits of a powerful network effect. This $12-billion company has not only established itself as a leader in the moving business but has also successfully ventured into the self-storage sector, claiming the third position in the industry. Based on comparable companies, this arm of U-Haul alone could be valued at an impressive $8 billion.
Considering U-Haul’s commanding presence in the market, its nonvoting stock (traded under the ticker UHAL.B) appears to be undervalued. Despite expectations of lower earnings this fiscal year due to reduced moving activity, shares are currently valued at approximately 14.1 times earnings, with a recent trading price of $63. Furthermore, the long-term outlook for U-Haul remains strong.
Surprisingly, U-Haul receives very little attention from Wall Street analysts. Operating much like a privately-owned entity, the company is under the control of the Shoen family, who themselves own about half of the company’s shares.
“Finding a brand as dominant and a business as well-managed and conservative as U-Haul is extremely rare,” says Galbraith from Kindred Capital. He believes that U-Haul would be an excellent acquisition target for Berkshire Hathaway.