UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:URI - US9113631090 - Common Stock
956.01 USD
+15.92 (+1.69%)
959.62 USD
+3.61 (+0.38%)
Overall URI gets a fundamental rating of 5 out of 10. We evaluated URI against 50 industry peers in the Trading Companies & Distributors industry. URI has an excellent profitability rating, but there are concerns on its financial health. URI is not valued too expensively and it also shows 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.
- In the past 5 years URI has always been profitable.
- URI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- URI has a Return On Assets of 8.42%. This is in the better half of the industry: URI outperforms 78.00% of its industry peers.
- URI's Return On Equity of 28.11% is amongst the best of 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.
- The Average Return On Invested Capital over the past 3 years for URI is above the industry average of 9.64%.
| 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
- URI has a better Profit Margin (15.83%) than 86.00% of its industry peers.
- In the last couple of years the Profit Margin of URI has grown nicely.
- URI has a Operating Margin of 25.08%. This is amongst the best in the industry. URI outperforms 86.00% 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 38.73%, URI is in the better half of the industry, outperforming 72.00% 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 | 25.08% | ||
| 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
- 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.
- 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 3.42. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
- URI's Altman-Z score of 3.42 is in line compared to the rest of the industry. URI outperforms 54.00% of its industry peers.
- The Debt to FCF ratio of URI is 31.44, which is on the high side as it means it would take URI, 31.44 years of fcf income to pay off all of its debts.
- URI's Debt to FCF ratio of 31.44 is in line compared to the rest of the industry. URI outperforms 50.00% of its industry peers.
- URI has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.40, URI is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.23
WACC9.56%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that URI may have some problems paying its short term obligations.
- With a Current ratio value of 0.90, URI is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
- 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.
- The Quick ratio of URI (0.84) is worse than 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.
- URI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.13% yearly.
- Looking at the last year, URI shows a small growth in Revenue. The Revenue has grown by 6.73% in the last 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
- URI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.38% yearly.
- The Revenue is expected to grow by 8.15% on average over the next years. This is quite good.
EPS Next Y-0.51%
EPS Next 2Y4.84%
EPS Next 3Y7.65%
EPS Next 5Y11.38%
Revenue Next Year6.14%
Revenue Next 2Y6.1%
Revenue Next 3Y6.33%
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
- A Price/Earnings ratio of 22.43 indicates a rather expensive valuation of URI.
- URI's Price/Earnings ratio is a bit cheaper when compared to the industry. URI is cheaper than 62.00% of the companies in the same industry.
- URI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 20.11, URI is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, URI is valued a bit cheaper than 64.00% of the companies in the same industry.
- URI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.43 | ||
| Fwd PE | 20.11 |
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.
- URI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 136.69 | ||
| EV/EBITDA | 10.62 |
4.3 Compensation for Growth
- The excellent profitability rating of URI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y4.84%
EPS Next 3Y7.65%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.77%, URI is not a good candidate for dividend investing.
- URI's Dividend Yield is comparable with the industry average which is at 1.48.
- Compared to an average S&P500 Dividend Yield of 1.82, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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 2Y4.84%
EPS Next 3Y7.65%
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.
Can you provide the valuation status for UNITED RENTALS INC?
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.
Can you provide the PE and PB ratios for URI stock?
The Price/Earnings (PE) ratio for UNITED RENTALS INC (URI) is 22.43 and the Price/Book (PB) ratio is 6.83.
Is the dividend of UNITED RENTALS INC sustainable?
The dividend rating of UNITED RENTALS INC (URI) is 2 / 10 and the dividend payout ratio is 18.1%.