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.
We had written almost exactly 1 year ago on the club–you can see that (and the comments) here.
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.
The SEC 10-Q filing can be found here.
Tim – I have a question for you….Is there a way to place the UHAUL Investor Club holdings “within” a brokerage account, like FIDO? Or linking it somehow so that one can see it as part of one’s overall holdings? At this stage of my life, I am trying to consolidate everything into one for the benefit of my beneficiaries…..as I understand it, this would be a very separate account?
Malka, I think this would be a ‘very separate account’, although it could be setup as a Roth or Trad IRA – see my link. I understand what you’re asking though. At Merrill, one can link in your checking and savings accounts, real estate, cars, and all kinds of possessions so that you get a one-stop shop monitoring your “net worth”. I’m not sure about FIDO.
https://www.uhaulinvestorsclub.com/CreateAccount/StartupIraElgibility
Affinity4Investing
Yes, that is precisely what I am looking for. Fido allows for linking, but am not sure I can do it with this particular holding. I was hoping to hear someone has cracked the code….Thanks.
Malka–I doubt that is possible (linking). This most likely remains totally separate–I would doubt either party (Uhaul or a broker) really wants to commingle things.
Tim – thank you. I guess I knew that but was hoping someone found a way around it….:-)