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.
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…
I’ll start with a refresher of the key sections and bullet points:
Why is it a Sleep Well Business?
Evergreen product needs
Secular runway for growth
Market leader today and likely tomorrow
Direct and future competitors [End of Part 1]
Moats [Part 2 starts]
Easy to understand and predictable business model
Flexible capex profile
A clear path to growth
Aligned capital allocation framework
Sleep Well Scorecard
What to track?
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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.