This article is an excerpt from “Barron’s 10 Favorite Stocks for 2024,” published on Dec. 15, 2023. To see the full list, click here.
There are few businesses with a stronger competitive position than
U-Haul Holding,
which dominates the do-it-yourself moving business with its nationwide fleet of trucks.
U-Haul’s rivals—including
Penske
and Budget—are a fraction of its size. It’s the ultimate network-effect business, given its 23,000 locations around the U.S. and Canada and nearly 200,000 rental trucks. The $12-billion company has steadily built a sizable self-storage business that now ranks third in the industry, and could be worth $8 billion alone based on comparable companies.
Given U-Haul’s market position, the nonvoting stock, which trades under the ticker UHAL.B, looks inexpensive. Even with earnings expected to slip to $4.50 this fiscal year due to reduced moving activity, shares are valued at about 14.1 times earnings at a recent $63, while the long-term outlook looks strong.
There is virtually no Wall Street coverage of U-Haul. It is run like a private company by the Shoen family, which owns about half the company.
“It’s hard to find such a dominant brand and such an extremely well and conservatively run business as U-Haul,” says Kindred Capital’s Galbraith. He says the company would be a great acquisition for
Berkshire Hathaway.
Write to Andrew Bary at [email protected]
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