U-Haul Holding (UHAL) is back in focus after fiscal 2026 results showed lower net earnings and a wider Q4 loss related to equipment disposal and new storage unit costs, along with higher rental revenues.

The recent earnings setback and share repurchase announcement come as U-Haul Holding’s share price return over the past 90 days of 46.75% and year to date share price return of 32.64% point to building momentum, while the 1 year total shareholder return of 10.01% and 3 year total shareholder return of 21.20% indicate a steadier longer term picture.

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With U-Haul Holding’s share price climbing, revenue growth of 3.4% and a newly approved US$350 million buyback, the key question now is whether the recent weakness in earnings leaves the stock undervalued or if the market is already pricing in future growth.

Preferred Price-to-Sales of 2.2x: Is it justified?

On the latest figures, U-Haul Holding trades on a P/S of 2.2x, which screens as expensive against both peers and the level suggested by fair value models.

The P/S ratio compares the company’s market value with its revenue and is often watched closely for asset heavy operators like U-Haul Holding where earnings can be affected by depreciation, financing costs and one off items. A higher P/S usually implies the market is willing to pay more for each dollar of sales, often because it expects stronger or more dependable revenue than the sector overall.

Here though, U-Haul Holding’s 2.2x P/S stands well above the estimated fair P/S of 1.5x and is also above both the peer average of 1.8x and the wider US Transportation industry average of 1.4x. That gap signals investors are paying a clear premium to comparable companies and to the level regression based models suggest the ratio could gravitate toward over time.

Result: Price-to-Sales of 2.2x (OVERVALUED)

However, U-Haul Holding’s relatively low net income of US$83.128 million on US$6.038b of revenue and ongoing equipment and storage investment costs could pressure returns if conditions tighten.

Next Steps

If the mix of premium pricing and earnings pressure at U-Haul Holding leaves you unsure, take a moment to review the full picture for yourself. Move quickly to weigh the company’s risk profile against your own tolerance using the 3 important warning signs.

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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.