EquipmentShare.com Begins IPO Rollout As It Ramps Footprint Expansion
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Donovan JonesInvesting Group LeaderFollow5ShareSavePlay(12min)CommentsSummaryEquipmentShare.com is pursuing an IPO to raise working capital amid rapid revenue growth but declining margins and rising costs.EQPT's net debt to EBITDA of 5.0x is significantly higher than peers, highlighting balance sheet leverage as a key risk.Selling, G&A expenses as a percentage of revenue have risen to 24.2%, and efficiency multiples have deteriorated to 0.9x.Growth strategy targets expansion from 342 to 700 locations, but slowing growth and margin compression challenge the investment case. bjdlzx/E+ via Getty Images EquipmentShare.com Is Growing, But Margins Are Falling EquipmentShare.com Inc (EQPT) has filed to raise working capital in an IPO of its Class A common stock, according to SEC S-1 registration information. EQPT operates a networkThis article was written byDonovan Jones21.46K FollowersFollowDonovan Jones is an IPO research specialist with 15 years of experience identifying opportunities for high quality IPOs.He also leads the investing group IPO Edge, which offers actionable information on growth stocks through first-look IPO filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates. Learn moreAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You