Reducing Ashtead's Fair Value Estimate to GBP 45.50
Ashtead Group is the second-largest rental equipment business in the United States, where it derives 90% of its profits, operating under the Sunbelt Rentals brand. The business has successfully expanded its share in a highly fragmented market from 4% in 2007 to 13% in 2023 in the U.S. through a combination of its “cluster” strategy and bolt-on acquisitions. Despite increasing its store count by 40% since the start of 2021, the industry remains highly fragmented, providing plenty of runway for Ashtead to continue to gain share.