UNITED RENTALS INC (URI) Stock Fundamental Analysis
NYSE:URI - New York Stock Exchange, Inc. - US9113631090 - Common Stock - Currency: USD
URI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 industry peers in the Trading Companies & Distributors industry. URI has an excellent profitability rating, but 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.
URI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
URI's Return On Assets of 9.14% is fine compared to the rest of the industry. URI outperforms 72.92% of its industry peers.
URI has a better Return On Equity (29.87%) than 95.83% of its industry peers.
With an excellent Return On Invested Capital value of 12.40%, URI belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for URI is above the industry average of 9.86%.
The 3 year average ROIC (12.29%) for URI is below the current ROIC(12.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.14% | ||
| ROE | 29.87% | ||
| ROIC | 12.4% |
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 16.78%, URI belongs to the top of the industry, outperforming 91.67% 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 26.51%, URI belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of URI has grown nicely.
URI's Gross Margin of 40.08% is fine compared to the rest of the industry. URI outperforms 70.83% 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 | 26.51% | ||
| PM (TTM) | 16.78% | ||
| GM | 40.08% |
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.
URI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for URI has been reduced compared to 5 years ago.
Compared to 1 year ago, URI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.10 indicates that URI is not in any danger for bankruptcy at the moment.
URI has a Altman-Z score (3.10) which is comparable to the rest of the industry.
URI has a debt to FCF ratio of 32.00. This is a negative value and a sign of low solvency as URI would need 32.00 years to pay back of all of its debts.
With a Debt to FCF ratio value of 32.00, URI perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
URI has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.42, URI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 32 | ||
| Altman-Z | 3.1 |
ROIC/WACC1.18
WACC10.48%
2.3 Liquidity
URI has a Current Ratio of 0.98. 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 (0.98) is worse than 89.58% of its industry peers.
URI has a Quick Ratio of 0.98. 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 Quick ratio of 0.92 is on the low side compared to the rest of the industry. URI is outperformed by 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
URI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.93%.
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 7.07% 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)5.93%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%2.93%
Revenue 1Y (TTM)7.07%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%9.84%
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 10.89% on average per year.
Based on estimates for the next years, URI will show a small growth in Revenue. The Revenue will grow by 5.17% on average per year.
EPS Next Y4.45%
EPS Next 2Y7.12%
EPS Next 3Y8.54%
EPS Next 5Y10.89%
Revenue Next Year4.73%
Revenue Next 2Y5.08%
Revenue Next 3Y5.13%
Revenue Next 5Y5.17%
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
URI is valuated correctly with a Price/Earnings ratio of 15.20.
62.50% of the companies in the same industry are more expensive than URI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of URI to the average of the S&P500 Index (29.63), we can say URI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.55, the valuation of URI can be described as correct.
Based on the Price/Forward Earnings ratio, URI is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
URI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 14.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, URI is valued a bit cheaper than 75.00% of the companies 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 | 102.94 | ||
| EV/EBITDA | 8.4 |
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)3.42
PEG (5Y)0.89
EPS Next 2Y7.12%
EPS Next 3Y8.54%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.92%, which is pretty low.
The stock price of URI dropped by -22.61% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
URI's Dividend Yield is comparable with the industry average which is at 1.87.
Compared to an average S&P500 Dividend Yield of 2.29, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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
16.85% of the earnings are spent on dividend by URI. This is a low number and sustainable payout ratio.
DP16.85%
EPS Next 2Y7.12%
EPS Next 3Y8.54%
657.29
-37.48 (-5.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.89%
Inst Owner Change-7.52%
Ins Owners0.47%
Ins Owner Change1.88%
Market Cap43.13B
Analysts70.37
Price Target831.75 (26.54%)
Short Float %2.55%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP16.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.91%
Min EPS beat(2)-6.35%
Max EPS beat(2)-1.46%
EPS beat(4)2
Avg EPS beat(4)0.38%
Min EPS beat(4)-6.35%
Max EPS beat(4)8.82%
EPS beat(8)5
Avg EPS beat(8)1.89%
EPS beat(12)8
Avg EPS beat(12)3.61%
EPS beat(16)10
Avg EPS beat(16)3.36%
Revenue beat(2)1
Avg Revenue beat(2)0.8%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)2.99%
Revenue beat(4)2
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)2.99%
Revenue beat(8)6
Avg Revenue beat(8)1.1%
Revenue beat(12)8
Avg Revenue beat(12)0.81%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)-2.95%
PT rev (3m)10.89%
EPS NQ rev (1m)-2.84%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)-4.41%
EPS NY rev (3m)-4.45%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 14.55 | ||
| P/S | 2.81 | ||
| P/FCF | 102.94 | ||
| P/OCF | 9.49 | ||
| P/B | 5 | ||
| P/tB | 40.73 | ||
| EV/EBITDA | 8.4 |
EPS(TTM)43.24
EY6.58%
EPS(NY)45.16
Fwd EY6.87%
FCF(TTM)6.39
FCFY0.97%
OCF(TTM)69.28
OCFY10.54%
SpS233.85
BVpS131.39
TBVpS16.14
PEG (NY)3.42
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.14% | ||
| ROE | 29.87% | ||
| ROCE | 16.38% | ||
| ROIC | 12.4% | ||
| ROICexc | 12.64% | ||
| ROICexgc | 18.32% | ||
| OM | 26.51% | ||
| PM (TTM) | 16.78% | ||
| GM | 40.08% | ||
| FCFM | 2.73% |
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-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 32 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 142.16% | ||
| Cap/Sales | 26.89% | ||
| Interest Coverage | 6.04 | ||
| Cash Conversion | 65.21% | ||
| Profit Quality | 16.27% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 3.1 |
F-Score5
WACC10.48%
ROIC/WACC1.18
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)5.93%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%2.93%
EPS Next Y4.45%
EPS Next 2Y7.12%
EPS Next 3Y8.54%
EPS Next 5Y10.89%
Revenue 1Y (TTM)7.07%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%9.84%
Revenue Next Year4.73%
Revenue Next 2Y5.08%
Revenue Next 3Y5.13%
Revenue Next 5Y5.17%
EBIT growth 1Y5.53%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year75.94%
EBIT Next 3Y25.33%
EBIT Next 5Y20.15%
FCF growth 1Y-33.91%
FCF growth 3Y-5.15%
FCF growth 5Y-9.07%
OCF growth 1Y-3.36%
OCF growth 3Y7.21%
OCF growth 5Y8.49%