Ashtead Group plc, trading under the symbol ASHTF on the PNK exchange, is a leading equipment rental company. It operates primarily in the United States and the United Kingdom, offering a wide range of construction and industrial equipment. The company competes with other major players in the equipment rental industry, such as United Rentals and Herc Rentals.
On March 4, 2025, Ashtead Group reported its earnings, revealing an earnings per share (EPS) of $0.772, slightly below the estimated $0.777. Despite this minor shortfall, the company's price-to-earnings (P/E) ratio of approximately 16.34 indicates that the market still values its earnings positively. This ratio helps investors understand how much they are paying for each dollar of the company's earnings.
The company generated a revenue of approximately $2.38 billion, which fell short of the estimated $2.70 billion. The price-to-sales ratio of about 2.29 suggests that investors are willing to pay $2.29 for every dollar of sales, reflecting confidence in the company's sales potential despite the revenue miss. The enterprise value to sales ratio of around 3.29 further highlights the company's total valuation relative to its sales.
During the Q3 2025 earnings call, CEO Brendan Horgan and CFO Alex Pease discussed the company's financial performance and strategic outlook. The enterprise value to operating cash flow ratio of approximately 22.86 provides insight into Ashtead Group's cash flow generation relative to its valuation, indicating a strong cash flow position. The earnings yield of about 6.12% offers investors a perspective on the return on investment.
The company's debt-to-equity ratio of approximately 1.46 indicates a moderate level of leverage, suggesting a balanced approach to financing its operations. Additionally, the current ratio of around 1.31 suggests that Ashtead Group is well-positioned to cover its short-term liabilities with its short-term assets, reflecting a stable financial position.
