ASHTEAD

Analysis of Ashtead share price

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If you are interested in the Ashtead company shares with a view to speculate online in this asset then we recommend that you first take some time to learn more about this company and read all the information you need to be able to generate your analyses of its share price. We will assist you with this task by supplying and presenting all the information you need to know in this dedicated article on the Ashtead Company including the activities of this company, how it generates its income, details on its major competitors in this market, and a summary of recent partnerships it has implemented, as well as the advantages and disadvantages of this asset. We will also explain how to create a comprehensive fundamental analysis of this asset by examining the news and events that will most impact this company’s share price.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, it is important to carefully follow the way in which demand could change from this company’s clients. For this we would examine the growth and economic health of the industrial and construction sectors in the geographical areas that Ashtead is present.

Analysis N°2

You should also take into account the sales price of equipment available for rental by the Ashtead Company. In fact, the higher the rental cost, the more advantageous the rental is as a solution for professionals which will be more likely to turn to this company for its requirements.

Analysis N°3

You will of course need to also monitor the competition in this activity sector and watch for all events and announcements as well as major publications by its principal competitors.

Analysis N°4

Finally, we would complete a comprehensive financial study of this company by scrutinising its growth in terms of turnover generated and the net results, its financial solidity with the amount of liquid capital available and its principal financial objectives for the coming years.

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General presentation of Ashtead

To advance further in your understanding of the essential elements for your analysis of the Ashtead share price we now offer you the opportunity to learn about this company and how it generates its income so you can understand its growth possibilities in the medium and long term future.

The Ashtead Group is a British company that exercises its activities in the equipment rental sector.  More precisely, this company is specialised in the rental of industrial and construction equipment.

To better understand the activities exercised by the Ashtead Group it is possible to divide them into different sectors, according to the turnover generated by each and in what way:

  • Firstly, as briefly stated, it is of course the industrial and construction equipment rental  activities of this company that generate the most turnover, 92% to be exact.
  • However the group also exercises other activities such as the sale of used equipment which provides 3.8% of its turnover.
  • Finally, the group also sells new equipment which provides 3.8% of its turnover.

It is also advantageous to know the geographical distribution of this group’s revenue. In fact, Ashtead only achieves 10.6% of its turnover in the United Kingdom. The United States is its major market providing 85% of its turnover and it achieves the remaining 4.4% in Canada.

Analysis of Ashtead share price
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The major competitors of Ashtead

Although a good basic knowledge of the Ashtead Company and its activities is necessary to complete full and comprehensive analyses of its share price on the stock markets, you should also be aware of the other major players in this activity sector which are therefore the major competitors of this company. This is exactly what we will reveal here in detail.

Kanamoto Co. Ltd

This company is notably specialised in the construction industry and operates machine and equipment rental and sales activities such as foundation machines, construction cranes, temporary buildings and security supplies. Kanamoto employs around 3,280 people at present.

United Rentals

This company is also specialised in the rental of industrial and construction equipment and principally rents cranes to the American market.

Hertz Global Holding

This is another American company, this time specialised in vehicle rental. It has several subsidiaries including Rental Car Intermediate Holdings, LLC, and the Hertz Corporation. However this company also exercises other activities such as the rental of specific equipment for companies.

Loxam

This French company is also specialised in the rental of equipment for BTP and exercises its activities throughout Europe, North Africa, the Middle East and South America.

Kiloutou

Another serious competitor to Ashtead is the French company Kiloutou which is specialised in equipment rental and has existed since 1980. In France this company is actually in the number two position in this sector and is highly present in the building trade and public works sectors as well as the smaller sectors such as companies and individuals and exercises its activities in other European countries as well as France.

BlueLine Rentals

This company, previously known as Volvo Rents, is an American company that rents construction equipment to businesses and individuals through a chain of stores it owns.

Caterpillar Inc.

Finally, the last major competitor to Ashtead we shall examine is the large American industrial company, Caterpillar, which is a manufacturer of machines for the construction industry, mines and forests.  It notably manufactures wheel loaders, hydraulic mechanical diggers, diesel engines and electric generators. It should be noted that this company also offers a range of derivative products such as shoes, bags, clothing and even all terrain smartphones.


The major partners of Ashtead

Although the Ashtead Company has to face strong competition as explained earlier, it can also count upon sizeable allies as its strategy is based to a great extent upon its strategic partnerships. Here we provide details on two such examples:

Forum Energy Technologies

In 2018 the Ashtead Group signed a partnership in the form of a joint venture with the Forum Energy Technologies Company.  In accordance with this agreement, the Forum Energy Technologies Company provided its submarine rental activities that had been marketed under the name Forum Subsea Rentals. The new company was named Ashtead Technology and was used to serve the major submarine centres on bases situated around Aberdeen, Singapore, Abu Dhabi, London and Houston. The new CEO of this joint company declared that with a flotilla of 19,000 valued at over 139 million dollars and the ability to serve all the major submarine centres this company had the ability to become a significant size with improved abilities and was well placed to respond to all the requirements of its clients’ projects.

Reliance Subsea Services

More recently, in 2020, the Ashtead Technology Group signed a partnership agreement with the company Reliance Subsea Services which is based in Trinidad. This company in fact provides a rental service for tools and equipment in the industrial oil and gas sector in the Caribbean Sea and to the north of Latin America. This agreement concerns the supply of submarine lifting equipment and ROV equipment by Ashtead to Reliance to be used in marine excavation projects, onsite development, MRI and decommissioning. On this occasion the group declared the nomination of Reliance Subsea Services as a business partner to the CARICOM and established an impressive assistance application file for international operators and leading service suppliers in this area.  In this manner the two companies could combine their global services with the local representation of Reliance with the objective of negotiating new contracts.

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The factors in favour of a rise in the Ashtead share price:

To conclude this article we offer you the opportunity to learn more about the advantages and disadvantages of Ashtead shares. To understand these points you need to know the strengths and weaknesses of this company that we will explain here.

Firstly, concerning the strong points of the Ashtead group we particularly note the following:

  • The group manages to successfully expand its activities by creating partnerships in the sectors where it is not yet present and its strategy thereby enables it to expand its market.
  • The fact that this company is well established internationally is also one of its major advantages.
  • Finally, the Ashtead Company has experienced a satisfactory growth over recent years with a stable financial situation.
The factors in favour of a drop in the Ashtead share price:

Concerning the disadvantages of this asset and therefore the weak points of this company we particularly note the following:

  • The high number of competitors in this sector.
  • A lack in the diversity of its activities apart from the rental sector.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are the most recent financial results of the Ashtead Group?

The Ashtead Company recently published its financial results for the 2019 financial year. These declare a turnover for this year of 4,138 million pounds sterling with an operating profit of 1,263.6 million pounds sterling and a net income of 796.9 million pounds sterling. These results have been published directly on the official company website and can be freely consulted.

Where is the Ashtead share price quoted on the stock markets?

The Ashtead share price is currently quoted on the British stock exchange and therefore continuously updated in real time on the LSE, or London Stock Exchange. It is quoted on the Main Market sector of this major financial marketplace. This company’s share price is also included in the stock market reference Index, the British FTSE 100.

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