Ashtead Group’s US-driven growth wins over investors despite debt concerns
Ashtead Group plc has become a standout choice for investors seeking exposure to the construction and infrastructure sectors. The company, which specialises in renting heavy machinery through its Sunbelt Rentals brand, now draws 85% of its sales from the US market. Recent stock market performance and analyst ratings suggest growing confidence in its long-term potential.
Ashtead’s core business revolves around equipment rental, accounting for 92.5% of its revenue. Unlike competitors such as United Rentals, it maintains a balanced presence across the US, UK, and Canada. The US remains its primary growth engine, benefiting from ongoing infrastructure investments and a strong construction cycle.
Analysts have given the stock an 'OVERWEIGHT' consensus, with 17 targeting a price of 58.41 GBP—a 12.68% increase from its current 51.84 GBP. The company’s share price recently climbed above its 200-day moving average, reaching GBX 5,094.81. Its price-to-earnings (P/E) ratio of 16.6x also sits well below the sector average of 22.2x, adding to its appeal.
However, risks remain. Ashtead’s heavy reliance on the US economy and construction trends could expose it to downturns. Additionally, its debt-to-equity ratio stands at 146.30, which may raise concerns for some investors.
Despite these factors, the company has built a solid track record. Its focus on renting rather than selling equipment provides steady revenue streams. Over the years, this model has helped deliver strong stock market performance, reinforcing its reputation as a quality long-term investment.
Ashtead’s position in the rental market, combined with its US-driven growth, continues to attract investor interest. With a favourable analyst outlook and a proven business model, the company appears well-placed to capitalise on infrastructure and construction demand. Yet, its exposure to economic cycles and debt levels means investors must weigh potential rewards against the risks.
