Third quarter results put U-Haul Holding (UHAL) fleet decisions in focus
U-Haul Holding (UHAL) is back on investors’ radar after its 3Q FY2026 update, which combined modest 1.9% revenue growth with pressure on profitability from higher depreciation and losses on retired rental equipment.
The self-storage business recorded 7.9% revenue growth, while earnings per share took a reported $0.24 hit from write downs and sales of older vehicles, particularly cargo vans. This has prompted management to recalibrate how aggressively it refreshes the fleet.
See our latest analysis for U-Haul Holding.
Despite the 3Q update and plans to trim truck purchases in fiscal 2027, U-Haul Holding’s recent momentum has been weak. The 1 month share price return has declined 12.71% to US$50.22 and the 1 year total shareholder return has dropped 28.65%, pointing to fading enthusiasm as investors reassess earnings pressure and fleet decisions.
If this earnings update has you rethinking where growth could come from next, it might be worth scanning opportunities in 21 top founder-led companies as potential long term compounders beyond the moving and storage space.
With the share price down 28.65% over the past year to US$50.22 and trading at a discount to the US$75.45 analyst target, you have to ask: is there real value here, or is future growth already priced in?
Price-to-Earnings of 76.6x: Is it justified?
On a P/E of 76.6x at a last close of $50.22, U-Haul Holding looks expensive compared both to its own earnings profile and to peers in the Transportation space.
The P/E ratio tells you how much investors are currently paying for each dollar of net income. For U-Haul Holding, a 76.6x P/E sits against net profit margins of 2.1% and earnings that have declined by 21.3% per year over the past 5 years. With earnings also down 71.3% over the past year, that price tag suggests the market is attaching a relatively rich value to current profits.
When you set that in context, the contrast is clear. The peer group sits on an average P/E of 54.9x, while the broader US Transportation industry is at 36.2x. As a result, U-Haul Holding is valued at a significantly higher multiple than both direct peers and the wider industry, even though its recent earnings trend and lower current margins do not point to rapid profit expansion based on the data here.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 76.6x (OVERVALUED)
However, you also have to weigh the risk that weak recent returns, along with any further fleet related write downs or margin pressure, could keep the high P/E under scrutiny.
Find out about the key risks to this U-Haul Holding narrative.
Another angle: using our DCF model
Our DCF model points a different way, with an estimate of future cash flow value at $42.12 per share versus the current $50.22 price. That suggests the shares look overvalued on this method, so which signal do you treat as more important: earnings multiple or cash flows?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out U-Haul Holding for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 53 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
If this all feels mixed, that is exactly why checking the underlying numbers for yourself matters. Move quickly, review the fundamentals and weigh up 3 important warning signs.
Looking for more investment ideas?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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