UNITED RENTALS INC (URI) Stock Fundamental Analysis
NYSE:URI - New York Stock Exchange, Inc. - US9113631090 - Common Stock - Currency: USD
Taking everything into account, URI scores 5 out of 10 in our fundamental rating. URI was compared to 49 industry peers in the Trading Companies & Distributors industry. URI scores excellent on profitability, but 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.
URI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
URI's Return On Assets of 9.09% is fine compared to the rest of the industry. URI outperforms 77.55% of its industry peers.
URI's Return On Equity of 29.02% is amongst the best of the industry. URI outperforms 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 12.55%, URI belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for URI is above the industry average of 9.84%.
The 3 year average ROIC (12.29%) for URI is below the current ROIC(12.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.09% | ||
| ROE | 29.02% | ||
| ROIC | 12.55% |
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 16.37%, URI belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
URI's Profit Margin has improved in the last couple of years.
URI's Operating Margin of 25.80% is amongst the best of the industry. URI outperforms 91.84% of its industry peers.
In the last couple of years the Operating Margin of URI has grown nicely.
URI has a better Gross Margin (39.54%) than 73.47% 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 | 25.8% | ||
| PM (TTM) | 16.37% | ||
| GM | 39.54% |
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
An Altman-Z score of 3.24 indicates that URI is not in any danger for bankruptcy at the moment.
URI has a Altman-Z score of 3.24. This is comparable to the rest of the industry: URI outperforms 53.06% of its industry peers.
URI has a debt to FCF ratio of 20.22. This is a negative value and a sign of low solvency as URI would need 20.22 years to pay back of all of its debts.
URI has a Debt to FCF ratio (20.22) which is in line with its industry peers.
URI has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.31, URI is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 20.22 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.28
WACC9.78%
2.3 Liquidity
A Current Ratio of 0.85 indicates that URI may have some problems paying its short term obligations.
The Current ratio of URI (0.85) is worse than 93.88% of its industry peers.
URI has a Quick Ratio of 0.85. 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 (0.79) than 75.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.21% over the past year.
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.
URI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.20%.
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)2.21%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-3.17%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%6.71%
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 8.18% on average per year.
Based on estimates for the next years, URI will show a small growth in Revenue. The Revenue will grow by 5.13% on average per year.
EPS Next Y1.08%
EPS Next 2Y4.93%
EPS Next 3Y6.62%
EPS Next 5Y8.18%
Revenue Next Year4.59%
Revenue Next 2Y4.53%
Revenue Next 3Y4.58%
Revenue Next 5Y5.13%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 17.54, URI is valued on the expensive side.
Based on the Price/Earnings ratio, URI is valued a bit cheaper than the industry average as 67.35% of the companies are valued more expensively.
URI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.15.
A Price/Forward Earnings ratio of 15.82 indicates a correct valuation of URI.
Based on the Price/Forward Earnings ratio, URI is valued a bit cheaper than 61.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of URI to the average of the S&P500 Index (21.60), we can say URI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.54 | ||
| Fwd PE | 15.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, URI is valued cheaply inside the industry as 83.67% 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 | 76.64 | ||
| EV/EBITDA | 8.77 |
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.
URI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)16.22
PEG (5Y)1.02
EPS Next 2Y4.93%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, URI is not a good candidate for dividend investing.
URI's Dividend Yield is a higher than the industry average which is at 3.00.
With a Dividend Yield of 0.96, URI pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
17.33% of the earnings are spent on dividend by URI. This is a low number and sustainable payout ratio.
DP17.33%
EPS Next 2Y4.93%
EPS Next 3Y6.62%
753.4
+0.78 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.28%
Inst Owner Change1.23%
Ins Owners0.44%
Ins Owner Change2.27%
Market Cap48.97B
Analysts74.07
Price Target745.15 (-1.1%)
Short Float %2.97%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP17.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.04%
Min EPS beat(2)-1.46%
Max EPS beat(2)-0.62%
EPS beat(4)1
Avg EPS beat(4)-1.98%
Min EPS beat(4)-6.35%
Max EPS beat(4)0.5%
EPS beat(8)5
Avg EPS beat(8)1.89%
EPS beat(12)7
Avg EPS beat(12)2.42%
EPS beat(16)9
Avg EPS beat(16)2.61%
Revenue beat(2)2
Avg Revenue beat(2)2.61%
Min Revenue beat(2)2.23%
Max Revenue beat(2)2.99%
Revenue beat(4)2
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)2.99%
Revenue beat(8)6
Avg Revenue beat(8)0.97%
Revenue beat(12)8
Avg Revenue beat(12)0.82%
Revenue beat(16)11
Avg Revenue beat(16)0.75%
PT rev (1m)3.31%
PT rev (3m)-8.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-2.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.54 | ||
| Fwd PE | 15.82 | ||
| P/S | 3.14 | ||
| P/FCF | 76.64 | ||
| P/OCF | 9.91 | ||
| P/B | 5.57 | ||
| P/tB | 38.05 | ||
| EV/EBITDA | 8.77 |
EPS(TTM)42.95
EY5.7%
EPS(NY)47.61
Fwd EY6.32%
FCF(TTM)9.83
FCFY1.3%
OCF(TTM)76.03
OCFY10.09%
SpS239.68
BVpS135.22
TBVpS19.8
PEG (NY)16.22
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.09% | ||
| ROE | 29.02% | ||
| ROCE | 16.57% | ||
| ROIC | 12.55% | ||
| ROICexc | 12.84% | ||
| ROICexgc | 18.78% | ||
| OM | 25.8% | ||
| PM (TTM) | 16.37% | ||
| GM | 39.54% | ||
| FCFM | 4.1% |
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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 20.22 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 144.98% | ||
| Cap/Sales | 27.62% | ||
| Interest Coverage | 5.73 | ||
| Cash Conversion | 70.72% | ||
| Profit Quality | 25.05% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 3.24 |
F-Score6
WACC9.78%
ROIC/WACC1.28
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)2.21%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-3.17%
EPS Next Y1.08%
EPS Next 2Y4.93%
EPS Next 3Y6.62%
EPS Next 5Y8.18%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%6.71%
Revenue Next Year4.59%
Revenue Next 2Y4.53%
Revenue Next 3Y4.58%
Revenue Next 5Y5.13%
EBIT growth 1Y1.34%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year73.11%
EBIT Next 3Y24.29%
EBIT Next 5Y16.84%
FCF growth 1Y38.01%
FCF growth 3Y-5.15%
FCF growth 5Y-9.07%
OCF growth 1Y10.16%
OCF growth 3Y7.21%
OCF growth 5Y8.49%