UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - NYSE:URI - US9113631090 - Common Stock
1005.65 USD
-14.35 (-1.41%)
1005.65 USD
0 (0%)
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. While URI belongs to the best of the industry regarding profitability, there are 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
In the past year URI was profitable.
In the past year URI had a positive cash flow from operations.
URI had positive earnings in each of the past 5 years.
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 75.51% of the companies in the same industry.
With an excellent Return On Equity value of 28.08%, URI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of URI (12.12%) is better than 81.63% 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 10.03%.
| 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
With an excellent Profit Margin value of 16.11%, URI belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
URI's Profit Margin has improved in the last couple of years.
URI has a better Operating Margin (25.51%) than 83.67% of its industry peers.
In the last couple of years the Operating Margin of URI has grown nicely.
With a decent Gross Margin value of 39.21%, URI is doing good in the industry, outperforming 73.47% 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
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
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
URI has an Altman-Z score of 3.63. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.63, URI is doing good in the industry, outperforming 67.35% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 22.09, URI is in line with its industry, outperforming 53.06% of the companies in the same industry.
URI has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
URI has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: URI underperforms 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 22.09 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.31
WACC9.26%
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.
Looking at the Current ratio, with a value of 0.86, URI is doing worse than 91.84% of the companies in the same industry.
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.
With a Quick ratio value of 0.80, URI is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for URI have decreased by -0.28% in the last 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.
The Revenue has been growing slightly by 6.77% in the past year.
URI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.41% yearly.
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
The Earnings Per Share is expected to grow by 11.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.15% on average over the next years. This is quite good.
EPS Next Y1.45%
EPS Next 2Y5.31%
EPS Next 3Y7.81%
EPS Next 5Y11.37%
Revenue Next Year5.56%
Revenue Next 2Y5.4%
Revenue Next 3Y5.62%
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
URI is valuated rather expensively with a Price/Earnings ratio of 23.54.
URI's Price/Earnings ratio is in line with the industry average.
URI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.97 indicates a rather expensive valuation of URI.
URI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, URI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 20.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, URI is valued a bit cheaper than 65.31% 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 | 106.77 | ||
| EV/EBITDA | 11.16 |
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)16.2
PEG (5Y)1.37
EPS Next 2Y5.31%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, URI is not a good candidate for dividend investing.
URI's Dividend Yield is comparable with the industry average which is at 2.84.
Compared to an average S&P500 Dividend Yield of 2.40, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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
17.74% of the earnings are spent on dividend by URI. This is a low number and sustainable payout ratio.
DP17.74%
EPS Next 2Y5.31%
EPS Next 3Y7.81%
1005.65
-14.35 (-1.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.6%
Inst Owner Change0%
Ins Owners0.44%
Ins Owner Change-0.71%
Market Cap64.70B
Analysts74.81
Price Target952.99 (-5.24%)
Short Float %2.96%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)6.71%
PT rev (3m)27.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.13%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 20.97 | ||
| P/S | 4.11 | ||
| P/FCF | 106.77 | ||
| P/OCF | 12.93 | ||
| P/B | 7.16 | ||
| P/tB | 41.5 | ||
| EV/EBITDA | 11.16 |
EPS(TTM)42.72
EY4.25%
EPS(NY)47.96
Fwd EY4.77%
FCF(TTM)9.42
FCFY0.94%
OCF(TTM)77.79
OCFY7.74%
SpS244.78
BVpS140.43
TBVpS24.23
PEG (NY)16.2
PEG (5Y)1.37
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 | 3.63 |
F-Score7
WACC9.26%
ROIC/WACC1.31
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 Y1.45%
EPS Next 2Y5.31%
EPS Next 3Y7.81%
EPS Next 5Y11.37%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%4.51%
Revenue Next Year5.56%
Revenue Next 2Y5.4%
Revenue Next 3Y5.62%
Revenue Next 5Y8.15%
EBIT growth 1Y-0.27%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.62%
EBIT Next 3Y24.92%
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%