UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:URI - US9113631090 - Common Stock
833.85 USD
+20.26 (+2.49%)
834 USD
+0.15 (+0.02%)
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 belongs to the best of the industry regarding profitability, there are concerns on its financial health. URI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
URI had positive earnings in the past year.
URI had a positive operating cash flow in the past year.
URI had positive earnings in each of the past 5 years.
In the past 5 years URI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of URI (8.42%) is better than 78.00% of its industry peers.
URI has a Return On Equity of 28.11%. This is amongst the best in the industry. URI outperforms 88.00% of its industry peers.
URI's Return On Invested Capital of 11.75% is fine compared to the rest of the industry. URI outperforms 80.00% of its industry peers.
URI had an Average Return On Invested Capital over the past 3 years of 12.29%. This is above the industry average of 9.41%.
| 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
With an excellent Profit Margin value of 15.83%, URI belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
In the last couple of years the Profit Margin of URI has grown nicely.
Looking at the Operating Margin, with a value of 25.08%, URI belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
URI's Operating Margin has improved in the last couple of years.
URI has a better Gross Margin (38.73%) than 72.00% of its industry peers.
In the last couple of years the Gross Margin of URI has remained more or less at the same level.
| 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.
The number of shares outstanding for URI has been reduced compared to 1 year ago.
URI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for URI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.16 indicates that URI is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.16, URI perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
URI has a debt to FCF ratio of 31.44. This is a negative value and a sign of low solvency as URI would need 31.44 years to pay back of all of its debts.
URI has a Debt to FCF ratio (31.44) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.40 is on the high side and indicates that URI has dependencies on debt financing.
The Debt to Equity ratio of URI (1.40) is worse than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.22
WACC9.66%
2.3 Liquidity
A Current Ratio of 0.90 indicates that URI may have some problems paying its short term obligations.
URI's Current ratio of 0.90 is on the low side compared to the rest of the industry. URI is outperformed by 90.00% of its industry peers.
URI has a Quick 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.
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.
The Earnings Per Share has been growing by 17.13% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.73% in the past year.
Measured over the past years, URI shows a quite strong growth in Revenue. The Revenue has been growing by 10.41% on average per year.
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.
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 2Y4.8%
EPS Next 3Y7.59%
EPS Next 5Y11.38%
Revenue Next Year6.13%
Revenue Next 2Y6.12%
Revenue Next 3Y6.51%
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
Based on the Price/Earnings ratio of 19.56, the valuation of URI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of URI indicates a somewhat cheap valuation: URI is cheaper than 68.00% of the companies listed in the same industry.
URI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.76.
With a Price/Forward Earnings ratio of 17.56, URI is valued on the expensive side.
URI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. URI is cheaper than 68.00% of the companies in the same industry.
URI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 17.56 |
4.2 Price Multiples
76.00% of the companies in the same industry are more expensive than URI, based on the Enterprise Value to EBITDA ratio.
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 | 119.22 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
The excellent profitability rating of URI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y4.8%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.89%, which is pretty low.
URI's Dividend Yield is comparable with the industry average which is at 2.98.
With a Dividend Yield of 0.89, URI pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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 2Y4.8%
EPS Next 3Y7.59%
833.85
+20.26 (+2.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.07%
Inst Owner Change-1.39%
Ins Owners0.44%
Ins Owner Change-0.13%
Market Cap53.65B
Revenue(TTM)15.99B
Net Income(TTM)2.53B
Analysts77.78
Price Target1014.33 (21.64%)
Short Float %2.75%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP18.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0.43%
PT rev (3m)13.58%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-2.27%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 17.56 | ||
| P/S | 3.36 | ||
| P/FCF | 119.22 | ||
| P/OCF | 10.77 | ||
| P/B | 5.96 | ||
| P/tB | 33.85 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)42.62
EY5.11%
EPS(NY)47.49
Fwd EY5.7%
FCF(TTM)6.99
FCFY0.84%
OCF(TTM)77.43
OCFY9.29%
SpS248.46
BVpS139.88
TBVpS24.63
PEG (NY)N/A
PEG (5Y)1.14
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 | 3.16 |
F-Score6
WACC9.66%
ROIC/WACC1.22
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 2Y4.8%
EPS Next 3Y7.59%
EPS Next 5Y11.38%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%5.94%
Revenue Next Year6.13%
Revenue Next 2Y6.12%
Revenue Next 3Y6.51%
Revenue Next 5Y8.15%
EBIT growth 1Y-0.96%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.55%
EBIT Next 3Y25.93%
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.
What is the valuation status for URI stock?
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.
What is the financial health of UNITED RENTALS INC (URI) stock?
The financial health rating of UNITED RENTALS INC (URI) is 3 / 10.
Can you provide the expected EPS growth for URI stock?
The Earnings per Share (EPS) of UNITED RENTALS INC (URI) is expected to decline by -0.51% in the next year.