UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:URI - US9113631090 - Common Stock
921.24 USD
-5.33 (-0.58%)
807.43 USD
-113.81 (-12.35%)
Overall URI gets a fundamental rating of 5 out of 10. We evaluated URI against 50 industry peers in the Trading Companies & Distributors industry. While URI has a great profitability rating, there are quite some concerns on its financial health. URI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year URI was profitable.
- In the past year URI had a positive cash flow from operations.
- Each year in the past 5 years URI has been profitable.
- URI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of URI (8.42%) is better than 78.00% of its industry peers.
- Looking at the Return On Equity, with a value of 28.11%, URI belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
- The Return On Invested Capital of URI (11.75%) is better than 80.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for URI is above the industry average of 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 28.11% | ||
| ROIC | 11.75% |
ROA(3y)9.11%
ROA(5y)7.83%
ROE(3y)29.83%
ROE(5y)26.44%
ROIC(3y)12.29%
ROIC(5y)11.04%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.83%, URI belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
- URI's Profit Margin has improved in the last couple of years.
- The Operating Margin of URI (25.08%) is better than 86.00% of its industry peers.
- In the last couple of years the Operating Margin of URI has grown nicely.
- URI has a better Gross Margin (38.73%) than 72.00% of its industry peers.
- URI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.08% | ||
| PM (TTM) | 15.83% | ||
| GM | 38.73% |
OM growth 3Y4.11%
OM growth 5Y2.83%
PM growth 3Y5.56%
PM growth 5Y5.97%
GM growth 3Y0.35%
GM growth 5Y0.42%
2. Health
2.1 Basic Checks
- URI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, URI has less shares outstanding
- URI has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, URI has a worse debt to assets ratio.
2.2 Solvency
- URI has an Altman-Z score of 3.36. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
- URI's Altman-Z score of 3.36 is in line compared to the rest of the industry. URI outperforms 54.00% of its industry peers.
- The Debt to FCF ratio of URI is 31.44, which is on the high side as it means it would take URI, 31.44 years of fcf income to pay off all of its debts.
- URI has a Debt to FCF ratio (31.44) which is in line with its industry peers.
- URI has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.40, URI is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.36 |
ROIC/WACC1.23
WACC9.53%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that URI may have some problems paying its short term obligations.
- The Current ratio of URI (0.90) is worse than 88.00% of its industry peers.
- A Quick Ratio of 0.84 indicates that URI may have some problems paying its short term obligations.
- URI has a worse Quick ratio (0.84) than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- URI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.68%.
- URI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.13% yearly.
- Looking at the last year, URI shows a small growth in Revenue. The Revenue has grown by 6.73% in the last year.
- URI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.41% yearly.
EPS 1Y (TTM)-0.68%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-0.85%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%5.94%
3.2 Future
- The Earnings Per Share is expected to grow by 11.38% on average over the next years. This is quite good.
- URI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.15% yearly.
EPS Next Y-0.51%
EPS Next 2Y4.84%
EPS Next 3Y7.65%
EPS Next 5Y11.38%
Revenue Next Year6.14%
Revenue Next 2Y6.1%
Revenue Next 3Y6.33%
Revenue Next 5Y8.15%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.62, URI is valued on the expensive side.
- Based on the Price/Earnings ratio, URI is valued a bit cheaper than 64.00% of the companies in the same industry.
- URI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- With a Price/Forward Earnings ratio of 19.38, URI is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of URI indicates a somewhat cheap valuation: URI is cheaper than 64.00% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. URI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.38 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of URI indicates a somewhat cheap valuation: URI is cheaper than 72.00% of the companies listed in the same industry.
- URI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 131.72 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
- URI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.26
EPS Next 2Y4.84%
EPS Next 3Y7.65%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.77%, URI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.48, URI has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.84, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
- URI has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- URI pays out 18.10% of its income as dividend. This is a sustainable payout ratio.
DP18.1%
EPS Next 2Y4.84%
EPS Next 3Y7.65%
921.24
-5.33 (-0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners94.04%
Inst Owner Change0.22%
Ins Owners0.44%
Ins Owner Change-0.15%
Market Cap59.27B
Revenue(TTM)15.99B
Net Income(TTM)2.53B
Analysts77.78
Price Target992.65 (7.75%)
Short Float %2.56%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP18.1%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.75%
Min EPS beat(2)-5.82%
Max EPS beat(2)-1.69%
EPS beat(4)0
Avg EPS beat(4)-2.4%
Min EPS beat(4)-5.82%
Max EPS beat(4)-0.62%
EPS beat(8)3
Avg EPS beat(8)-0.58%
EPS beat(12)5
Avg EPS beat(12)-0.01%
EPS beat(16)9
Avg EPS beat(16)2.75%
Revenue beat(2)2
Avg Revenue beat(2)0.3%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.57%
Revenue beat(4)4
Avg Revenue beat(4)1.45%
Min Revenue beat(4)0.03%
Max Revenue beat(4)2.99%
Revenue beat(8)6
Avg Revenue beat(8)0.69%
Revenue beat(12)9
Avg Revenue beat(12)0.89%
Revenue beat(16)12
Avg Revenue beat(16)0.8%
PT rev (1m)-2.14%
PT rev (3m)4.16%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.38 | ||
| P/S | 3.71 | ||
| P/FCF | 131.72 | ||
| P/OCF | 11.9 | ||
| P/B | 6.59 | ||
| P/tB | 37.4 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)42.62
EY4.63%
EPS(NY)47.53
Fwd EY5.16%
FCF(TTM)6.99
FCFY0.76%
OCF(TTM)77.43
OCFY8.41%
SpS248.46
BVpS139.88
TBVpS24.63
PEG (NY)N/A
PEG (5Y)1.26
Graham Number366.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 28.11% | ||
| ROCE | 15.51% | ||
| ROIC | 11.75% | ||
| ROICexc | 11.98% | ||
| ROICexgc | 16.94% | ||
| OM | 25.08% | ||
| PM (TTM) | 15.83% | ||
| GM | 38.73% | ||
| FCFM | 2.81% |
ROA(3y)9.11%
ROA(5y)7.83%
ROE(3y)29.83%
ROE(5y)26.44%
ROIC(3y)12.29%
ROIC(5y)11.04%
ROICexc(3y)12.46%
ROICexc(5y)11.18%
ROICexgc(3y)17.94%
ROICexgc(5y)16.54%
ROCE(3y)16.22%
ROCE(5y)14.58%
ROICexgc growth 3Y6.5%
ROICexgc growth 5Y3.66%
ROICexc growth 3Y8.64%
ROICexc growth 5Y5.28%
OM growth 3Y4.11%
OM growth 5Y2.83%
PM growth 3Y5.56%
PM growth 5Y5.97%
GM growth 3Y0.35%
GM growth 5Y0.42%
F-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 147.86% | ||
| Cap/Sales | 28.35% | ||
| Interest Coverage | 5.76 | ||
| Cash Conversion | 70.43% | ||
| Profit Quality | 17.79% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 3.36 |
F-Score6
WACC9.53%
ROIC/WACC1.23
Cap/Depr(3y)151.65%
Cap/Depr(5y)134.9%
Cap/Sales(3y)29%
Cap/Sales(5y)26.7%
Profit Quality(3y)25.91%
Profit Quality(5y)56.34%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.68%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-0.85%
EPS Next Y-0.51%
EPS Next 2Y4.84%
EPS Next 3Y7.65%
EPS Next 5Y11.38%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%5.94%
Revenue Next Year6.14%
Revenue Next 2Y6.1%
Revenue Next 3Y6.33%
Revenue Next 5Y8.15%
EBIT growth 1Y-0.96%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.6%
EBIT Next 3Y25.84%
EBIT Next 5Y19.92%
FCF growth 1Y212.5%
FCF growth 3Y-5.15%
FCF growth 5Y-9.07%
OCF growth 1Y9.71%
OCF growth 3Y7.21%
OCF growth 5Y8.49%
UNITED RENTALS INC / URI FAQ
What is the ChartMill fundamental rating of UNITED RENTALS INC (URI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to URI.
Can you provide the valuation status for UNITED RENTALS INC?
ChartMill assigns a valuation rating of 4 / 10 to UNITED RENTALS INC (URI). This can be considered as Fairly Valued.
What is the profitability of URI stock?
UNITED RENTALS INC (URI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for URI stock?
The Price/Earnings (PE) ratio for UNITED RENTALS INC (URI) is 21.62 and the Price/Book (PB) ratio is 6.59.
Is the dividend of UNITED RENTALS INC sustainable?
The dividend rating of UNITED RENTALS INC (URI) is 2 / 10 and the dividend payout ratio is 18.1%.