UNITED RENTALS INC (URI)
US9113631090 - Common Stock
URI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. While URI belongs to the best of the industry regarding profitability, there are concerns on its financial health. URI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
URI had positive earnings in the past year.
In the past year URI had a positive cash flow from operations.
Each year in the past 5 years URI has been profitable.
Each year in the past 5 years URI had a positive operating cash flow.
1.2 Ratios
URI has a better Return On Assets (9.03%) than 75.00% of its industry peers.
The Return On Equity of URI (29.89%) is better than 95.83% of its industry peers.
URI has a better Return On Invested Capital (12.50%) than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for URI is in line with the industry average of 9.72%.
The last Return On Invested Capital (12.50%) for URI is above the 3 year average (11.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 29.89% | ||
| ROIC | 12.5% |
ROA(3y)8.34%
ROA(5y)7.24%
ROE(3y)27.59%
ROE(5y)26.6%
ROIC(3y)11.35%
ROIC(5y)10.45%
1.3 Margins
URI has a Profit Margin of 17.13%. This is amongst the best in the industry. URI outperforms 89.58% of its industry peers.
URI's Profit Margin has improved in the last couple of years.
URI has a Operating Margin of 27.03%. This is amongst the best in the industry. URI outperforms 91.67% of its industry peers.
URI's Operating Margin has been stable in the last couple of years.
URI has a Gross Margin of 40.55%. This is in the better half of the industry: URI outperforms 70.83% of its industry peers.
URI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.03% | ||
| PM (TTM) | 17.13% | ||
| GM | 40.55% |
OM growth 3Y8.01%
OM growth 5Y1.27%
PM growth 3Y17.47%
PM growth 5Y4.43%
GM growth 3Y2.82%
GM growth 5Y-0.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), URI 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.
URI has a better debt/assets ratio than last year.
2.2 Solvency
URI has an Altman-Z score of 3.05. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of URI (3.05) is comparable to the rest of the industry.
URI has a debt to FCF ratio of 18.03. This is a negative value and a sign of low solvency as URI would need 18.03 years to pay back of all of its debts.
URI's Debt to FCF ratio of 18.03 is in line compared to the rest of the industry. URI outperforms 54.17% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that URI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.38, URI is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 18.03 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.11
WACC11.28%
2.3 Liquidity
A Current Ratio of 0.82 indicates that URI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, URI is doing worse than 91.67% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that URI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, URI is doing worse than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
URI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.19%, which is quite good.
Measured over the past years, URI shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.14% on average per year.
The Revenue has been growing slightly by 7.76% in the past year.
URI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.24% yearly.
EPS 1Y (TTM)9.19%
EPS 3Y32.7%
EPS 5Y20.14%
EPS Q2Q%0.6%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y18.88%
Revenue growth 5Y12.24%
Sales Q2Q%6.03%
3.2 Future
Based on estimates for the next years, URI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.06% on average per year.
Based on estimates for the next years, URI will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
EPS Next Y6.77%
EPS Next 2Y7.58%
EPS Next 3Y8.22%
EPS Next 5Y10.06%
Revenue Next Year6.68%
Revenue Next 2Y5.49%
Revenue Next 3Y5.37%
Revenue Next 5Y5.45%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.84, which indicates a correct valuation of URI.
URI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of URI to the average of the S&P500 Index (27.20), we can say URI is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.30 indicates a correct valuation of URI.
Based on the Price/Forward Earnings ratio, URI is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, URI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, URI is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as URI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.82 | ||
| EV/EBITDA | 8.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates URI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of URI may justify a higher PE ratio.
PEG (NY)2.49
PEG (5Y)0.84
EPS Next 2Y7.58%
EPS Next 3Y8.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, URI is not a good candidate for dividend investing.
URI's Dividend Yield is a higher than the industry average which is at 1.86.
With a Dividend Yield of 0.92, URI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
URI is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
16.65% of the earnings are spent on dividend by URI. This is a low number and sustainable payout ratio.
DP16.65%
EPS Next 2Y7.58%
EPS Next 3Y8.22%
UNITED RENTALS INC
NYSE:URI (12/20/2024, 8:04:00 PM)
After market: 722.637 0 (0%)722.64
+11.7 (+1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.89%
Inst Owner Change3.58%
Ins Owners0.47%
Ins Owner Change-0.24%
Market Cap47.42B
Analysts68.15
Price Target852.28 (17.94%)
Short Float %2.89%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Dividend Growth(5Y)N/A
DP16.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.93%
Min EPS beat(2)-6.35%
Max EPS beat(2)0.5%
EPS beat(4)3
Avg EPS beat(4)1.24%
Min EPS beat(4)-6.35%
Max EPS beat(4)8.82%
EPS beat(8)5
Avg EPS beat(8)1.18%
EPS beat(12)9
Avg EPS beat(12)4.47%
EPS beat(16)11
Avg EPS beat(16)4.58%
Revenue beat(2)0
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)-1.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)1.86%
Revenue beat(8)5
Avg Revenue beat(8)0.6%
Revenue beat(12)8
Avg Revenue beat(12)0.58%
Revenue beat(16)11
Avg Revenue beat(16)0.8%
PT rev (1m)13.62%
PT rev (3m)18.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.13%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.3 | ||
| P/S | 3.17 | ||
| P/FCF | 63.82 | ||
| P/OCF | 9.65 | ||
| P/B | 5.53 | ||
| P/tB | 45.86 | ||
| EV/EBITDA | 8.76 |
EPS(TTM)42.91
EY5.94%
EPS(NY)47.25
Fwd EY6.54%
FCF(TTM)11.32
FCFY1.57%
OCF(TTM)74.86
OCFY10.36%
SpS228.25
BVpS130.77
TBVpS15.76
PEG (NY)2.49
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 29.89% | ||
| ROCE | 16.6% | ||
| ROIC | 12.5% | ||
| ROICexc | 12.75% | ||
| ROICexgc | 18.63% | ||
| OM | 27.03% | ||
| PM (TTM) | 17.13% | ||
| GM | 40.55% | ||
| FCFM | 4.96% |
ROA(3y)8.34%
ROA(5y)7.24%
ROE(3y)27.59%
ROE(5y)26.6%
ROIC(3y)11.35%
ROIC(5y)10.45%
ROICexc(3y)11.47%
ROICexc(5y)10.55%
ROICexgc(3y)16.79%
ROICexgc(5y)15.85%
ROCE(3y)15.07%
ROCE(5y)13.87%
ROICexcg growth 3Y12.08%
ROICexcg growth 5Y4.48%
ROICexc growth 3Y15.66%
ROICexc growth 5Y7.02%
OM growth 3Y8.01%
OM growth 5Y1.27%
PM growth 3Y17.47%
PM growth 5Y4.43%
GM growth 3Y2.82%
GM growth 5Y-0.6%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 18.03 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 146.9% | ||
| Cap/Sales | 27.83% | ||
| Interest Coverage | 6.11 | ||
| Cash Conversion | 71.33% | ||
| Profit Quality | 28.97% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.05 |
F-Score5
WACC11.28%
ROIC/WACC1.11
Cap/Depr(3y)158.02%
Cap/Depr(5y)129.52%
Cap/Sales(3y)31%
Cap/Sales(5y)26.34%
Profit Quality(3y)32.29%
Profit Quality(5y)64.57%
High Growth Momentum
Growth
EPS 1Y (TTM)9.19%
EPS 3Y32.7%
EPS 5Y20.14%
EPS Q2Q%0.6%
EPS Next Y6.77%
EPS Next 2Y7.58%
EPS Next 3Y8.22%
EPS Next 5Y10.06%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y18.88%
Revenue growth 5Y12.24%
Sales Q2Q%6.03%
Revenue Next Year6.68%
Revenue Next 2Y5.49%
Revenue Next 3Y5.37%
Revenue Next 5Y5.45%
EBIT growth 1Y6.19%
EBIT growth 3Y28.41%
EBIT growth 5Y13.66%
EBIT Next Year79.13%
EBIT Next 3Y25.17%
EBIT Next 5Y17.08%
FCF growth 1Y60.13%
FCF growth 3Y-24.95%
FCF growth 5Y2.44%
OCF growth 1Y27.58%
OCF growth 3Y20.96%
OCF growth 5Y10.52%