Giant equipment rental firm Amerco (UHAL) released their earnings about a week ago.
We mention this because of our personal investment in the UHAUL Investors Club and because I know many readers also participate in the Investors Club.
The earnings for the quarter ending 9/30/2019 are pretty decent–as has been the norm in recent years. On revenue of $1.15 billion the company brought $156 million to the bottom line. Revenues grew 4% over the year ago quarter, but earnings were off 6%.
We do note that depreciation, a non cash charge, is always the one of the companies largest expenses, but unlike real estate companies the assets of the company do in fact depreciate and the company spends dramatic amounts of capital on replacement equipment. During the 1st 6 months of the fiscal year the company spent $1.6 billion on new equipment–obviously there are plenty of new UHAUL trucks running around the country.
Taking a look at the Amerco balance sheet should always bring comfort to investors. The company currently holds about $3.2 billion in cash and securities–nothing like cold, hard cash to make a lender (investors in the Investors Club) feel secure.
The companies common stock now trades at $366 giving the company a market cap of about $7 billion.