EquipmentShare.com Inc (NASDAQ:EQPT) is one of the stocks Jim Cramer put under the microscope. Cramer highlighted the company’s growth during the episode, as he remarked:
This is not the kind of stock you get hurt. It’s the kind of stock you buy, you put away. So, after that nice start, is EquipmentShare still worth owning? I gotta tell you, at 29 and change, EquipmentShare has a market cap of around 7.5 billion. Add in a little over 2 billion in net debt, and the company has an enterprise value of just under $10 billion… Using the midpoint of last year’s preliminary EBITDA numbers, this thing has what’s called an enterprise multiple… of 14.5. Alright, that doesn’t look too expensive to me on an absolute basis, not for a fast-growing disruptor in an attractive industry. Now, full disclosure, though, EquipmentShare is expensive compared to some of the top existing players in this equipment rental space… But I’m talking about growth here. I think it’s worth paying up for EquipmentShare’s growth, which seems like it’s come up with a much better model for an established industry, and has a three-year revenue compound annual growth rate of around 36%, compared to say 12% for United Rentals… See, that’s the real difference.
Stock market data. Photo by Photo by Alesia Kozik
EquipmentShare.com Inc (NASDAQ:EQPT) provides a digital platform for construction equipment rentals and sales, in addition to industrial tools and site management services. The company offers machinery parts, maintenance, and safety products.
