WillScot Mobile Mini - A Circle Economy Leader [Part 2]

Multiple times the size of the next competitor in a $10B+ market, products with compelling unit economics over a 30-yr asset life, resilient business model, management proactive on value creation.

This is Part 2 of the 9th SWI - A Circle Economy Leader. You can read Part 1 here.

Circle economy business

Hi, I am Trung. I write 10+K words deep-dives on market leaders. I also write Thesis Trackers updates to follow up on their performance. When the right price comes, I buy them for the Sleep Well Portfolio, which I am building for my 4-year-old daughter to redeem in 2037. I disclose the reasoning of all BUY and SELL (ideally never) transactions (1st, 2nd, and 3rd). Join me in building generational wealth.

Let’s jump to it…

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I’ll start with a refresher of the key sections and bullet points:

Why is it a Sleep Well Business?

1. Half-century product

   1. Evergreen product needs

   2. Limited alternatives

   3. Secular runway for growth

   4. M&A platform

2. Market leader today and likely tomorrow

   1. Market share

   2. Direct and future competitors [End of Part 1]

   3. Moats [Part 2 starts]

      1. No-frill products

      2. Scale/cost advantage

      3. M&A platform

3. Easy to understand and predictable business model

   1. Simple operation

   2. Flexible capex profile

   3. A clear path to growth

   4. Mid-term targets

   5. Aligned capital allocation framework

4. Anti-fragile attributes

5. Reasonable valuation

   1. Base case

   2. Bear case

6. Sleep Well Scorecard

7. What to track?

Part 1 ended with a question:

What defensible attributes does the business have to protect its market leading position and longevity?

Part 2 continues by analyzing the

• business moats, then

• the adaptive business model by design,

• the attractive unit economics of its assets over the 20-30-year life,

• anti-fragility attributes to help the business weather a major recession,

• capital allocation framework and management attitude and execution, then

• valuation - what’s the right buy price for a healthy dose of margin of safety?

Finally, we will see how the business performs under my Sleep Well Investments Checklist compared to my previous picks, and I plan to track the business in the future.