UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - NYSE:URI - US9113631090 - Common Stock
947.9 USD
+9.9 (+1.06%)
947.9 USD
0 (0%)
URI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 is quite expensive at the moment. It does show a decent 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
Looking at the Return On Assets, with a value of 8.69%, URI is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
URI's Return On Equity of 28.08% is amongst the best of the industry. URI outperforms 86.00% of its industry peers.
URI has a Return On Invested Capital of 12.12%. This is in the better half of the industry: URI outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for URI is above the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 28.08% | ||
| ROIC | 12.12% |
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 Profit Margin of 16.11%. This is amongst the best in the industry. URI outperforms 84.00% of its industry peers.
In the last couple of years the Profit Margin of URI has grown nicely.
URI has a Operating Margin of 25.51%. This is amongst the best in the industry. URI outperforms 84.00% of its industry peers.
In the last couple of years the Operating Margin of URI has grown nicely.
Looking at the Gross Margin, with a value of 39.21%, URI is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
URI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.51% | ||
| PM (TTM) | 16.11% | ||
| GM | 39.21% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), URI is creating some value.
The number of shares outstanding for URI has been reduced compared to 1 year ago.
The number of shares outstanding for URI has been reduced compared to 5 years ago.
The debt/assets ratio for URI is higher compared to a year ago.
2.2 Solvency
URI has an Altman-Z score of 3.47. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
URI has a Altman-Z score (3.47) which is comparable to the rest of the industry.
URI has a debt to FCF ratio of 22.09. This is a negative value and a sign of low solvency as URI would need 22.09 years to pay back of all of its debts.
URI has a Debt to FCF ratio (22.09) which is in line with its industry peers.
URI has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.34, URI is doing worse than 74.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 22.09 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.3
WACC9.32%
2.3 Liquidity
URI has a Current Ratio of 0.86. This is a bad value and indicates that URI is not financially healthy enough and could expect problems in meeting its short term obligations.
URI's Current ratio of 0.86 is on the low side compared to the rest of the industry. URI is outperformed by 92.00% of its industry peers.
URI has a Quick Ratio of 0.86. This is a bad value and indicates that URI is not financially healthy enough and could expect problems in meeting its short term obligations.
URI has a worse Quick ratio (0.80) than 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
URI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.28%.
Measured over the past years, URI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.13% on average per year.
The Revenue has been growing slightly by 6.77% in the past year.
The Revenue has been growing by 10.41% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.28%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-2.15%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%4.51%
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 11.37% on average per year.
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 Y1.6%
EPS Next 2Y5.29%
EPS Next 3Y7.25%
EPS Next 5Y11.37%
Revenue Next Year5.5%
Revenue Next 2Y5.15%
Revenue Next 3Y5.07%
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.
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
The Price/Earnings ratio is 22.19, 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 27.27, URI is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.77, the valuation of URI can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as URI.
When comparing the Price/Forward Earnings ratio of URI to the average of the S&P500 Index (22.77), we can say URI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.19 | ||
| Fwd PE | 19.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, URI is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of URI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.64 | ||
| EV/EBITDA | 10.41 |
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)13.83
PEG (5Y)1.3
EPS Next 2Y5.29%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.73%, which is pretty low.
URI's Dividend Yield is comparable with the industry average which is at 2.75.
Compared to an average S&P500 Dividend Yield of 2.38, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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 17.74% of its income as dividend. This is a sustainable payout ratio.
DP17.74%
EPS Next 2Y5.29%
EPS Next 3Y7.25%
947.9
+9.9 (+1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.47%
Inst Owner Change-0.96%
Ins Owners0.44%
Ins Owner Change-0.71%
Market Cap60.99B
Analysts73.08
Price Target902.9 (-4.75%)
Short Float %3.28%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP17.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.15%
Min EPS beat(2)-1.69%
Max EPS beat(2)-0.62%
EPS beat(4)0
Avg EPS beat(4)-2.53%
Min EPS beat(4)-6.35%
Max EPS beat(4)-0.62%
EPS beat(8)4
Avg EPS beat(8)0.61%
EPS beat(12)6
Avg EPS beat(12)0.58%
EPS beat(16)9
Avg EPS beat(16)2.85%
Revenue beat(2)2
Avg Revenue beat(2)1.13%
Min Revenue beat(2)0.03%
Max Revenue beat(2)2.23%
Revenue beat(4)3
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)2.99%
Revenue beat(8)6
Avg Revenue beat(8)0.73%
Revenue beat(12)8
Avg Revenue beat(12)0.7%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)4.8%
PT rev (3m)19.25%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)0.83%
EPS NY rev (1m)0.71%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.19 | ||
| Fwd PE | 19.77 | ||
| P/S | 3.87 | ||
| P/FCF | 100.64 | ||
| P/OCF | 12.19 | ||
| P/B | 6.75 | ||
| P/tB | 39.12 | ||
| EV/EBITDA | 10.41 |
EPS(TTM)42.72
EY4.51%
EPS(NY)47.94
Fwd EY5.06%
FCF(TTM)9.42
FCFY0.99%
OCF(TTM)77.79
OCFY8.21%
SpS244.78
BVpS140.43
TBVpS24.23
PEG (NY)13.83
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 28.08% | ||
| ROCE | 16% | ||
| ROIC | 12.12% | ||
| ROICexc | 12.39% | ||
| ROICexgc | 17.82% | ||
| OM | 25.51% | ||
| PM (TTM) | 16.11% | ||
| GM | 39.21% | ||
| FCFM | 3.85% |
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%
ROICexcg growth 3Y6.5%
ROICexcg 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-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 22.09 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 146.15% | ||
| Cap/Sales | 27.93% | ||
| Interest Coverage | 5.77 | ||
| Cash Conversion | 71.22% | ||
| Profit Quality | 23.89% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 3.47 |
F-Score7
WACC9.32%
ROIC/WACC1.3
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)-0.28%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-2.15%
EPS Next Y1.6%
EPS Next 2Y5.29%
EPS Next 3Y7.25%
EPS Next 5Y11.37%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%4.51%
Revenue Next Year5.5%
Revenue Next 2Y5.15%
Revenue Next 3Y5.07%
Revenue Next 5Y8.15%
EBIT growth 1Y-0.27%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.79%
EBIT Next 3Y24.55%
EBIT Next 5Y19.92%
FCF growth 1Y234.81%
FCF growth 3Y-5.15%
FCF growth 5Y-9.07%
OCF growth 1Y8.31%
OCF growth 3Y7.21%
OCF growth 5Y8.49%