UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:URI - US9113631090 - Common Stock
940.09 USD
+29.54 (+3.24%)
940.09 USD
0 (0%)
Overall URI gets a fundamental rating of 5 out of 10. We evaluated URI against 50 industry peers in the Trading Companies & Distributors industry. URI has an excellent profitability rating, but there are concerns on its financial health. URI is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years URI has always been profitable.
- URI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- URI has a Return On Assets of 8.42%. This is in the better half of the industry: URI outperforms 78.00% of its industry peers.
- With an excellent Return On Equity value of 28.11%, URI belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
- URI has a better Return On Invested Capital (11.75%) 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
- URI has a better Profit Margin (15.83%) than 86.00% of its industry peers.
- 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 Gross Margin of 38.73%. This is in the better half of the industry: URI outperforms 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so URI is still creating some value.
- Compared to 1 year ago, URI has less shares outstanding
- Compared to 5 years ago, URI has less shares outstanding
- URI has a worse debt/assets ratio than last year.
2.2 Solvency
- URI has an Altman-Z score of 3.39. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
- URI has a Altman-Z score (3.39) which is in line with 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 of 31.44. This is comparable to the rest of the industry: URI outperforms 50.00% of its industry peers.
- A Debt/Equity ratio of 1.40 is on the high side and indicates that URI has dependencies on debt financing.
- URI's Debt to Equity ratio of 1.40 is on the low side compared to the rest of the industry. URI is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.39 |
ROIC/WACC1.23
WACC9.57%
2.3 Liquidity
- URI has a Current Ratio of 0.90. This is a bad value and indicates that URI is not financially healthy enough and could expect problems in meeting 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 Quick ratio of 0.84. This is in the lower half of the industry: URI underperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- The earnings per share for URI have decreased by -0.68% in the last year.
- URI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.13% yearly.
- URI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.73%.
- The Revenue has been growing by 10.41% on average over the past years. This is quite good.
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
- Based on estimates for the next years, URI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.38% on average per year.
- Based on estimates for the next years, URI will show a quite strong growth in Revenue. The Revenue will grow by 8.15% on average per year.
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
- 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 22.06, which indicates a rather expensive current valuation of URI.
- 62.00% of the companies in the same industry are more expensive than URI, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, URI is valued at the same level.
- The Price/Forward Earnings ratio is 19.78, which indicates a rather expensive current valuation of URI.
- 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.
- When comparing the Price/Forward Earnings ratio of URI to the average of the S&P500 Index (24.30), we can say URI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 19.78 |
4.2 Price Multiples
- 70.00% of the companies in the same industry are more expensive than URI, based on the Enterprise Value to EBITDA ratio.
- URI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 134.41 | ||
| EV/EBITDA | 10.48 |
4.3 Compensation for Growth
- The excellent profitability rating of URI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.29
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.
- URI's Dividend Yield is comparable with the industry average which is at 1.48.
- With a Dividend Yield of 0.77, URI pays less dividend than the S&P500 average, which is at 1.86.
| 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
- 18.10% of the earnings are spent on dividend by URI. This is a low number and sustainable payout ratio.
DP18.1%
EPS Next 2Y4.84%
EPS Next 3Y7.65%
940.09
+29.54 (+3.24%)
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 Cap60.49B
Revenue(TTM)15.99B
Net Income(TTM)2.53B
Analysts77.78
Price Target992.65 (5.59%)
Short Float %2.45%
Short Ratio2.44
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 | 22.06 | ||
| Fwd PE | 19.78 | ||
| P/S | 3.78 | ||
| P/FCF | 134.41 | ||
| P/OCF | 12.14 | ||
| P/B | 6.72 | ||
| P/tB | 38.16 | ||
| EV/EBITDA | 10.48 |
EPS(TTM)42.62
EY4.53%
EPS(NY)47.53
Fwd EY5.06%
FCF(TTM)6.99
FCFY0.74%
OCF(TTM)77.43
OCFY8.24%
SpS248.46
BVpS139.88
TBVpS24.63
PEG (NY)N/A
PEG (5Y)1.29
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 | 3.39 |
F-Score6
WACC9.57%
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 22.06 and the Price/Book (PB) ratio is 6.72.
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%.