UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:URI - US9113631090 - Common Stock
815.18 USD
+0.21 (+0.03%)
815.18 USD
0 (0%)
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 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.
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 better Return On Assets (8.42%) than 79.59% of its industry peers.
With an excellent Return On Equity value of 28.11%, URI belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
URI has a Return On Invested Capital of 11.75%. This is amongst the best in the industry. URI outperforms 81.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for URI is above the industry average of 9.22%.
| 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
Looking at the Profit Margin, with a value of 15.83%, URI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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 85.71% of its industry peers.
In the last couple of years the Operating Margin of URI has grown nicely.
URI has a Gross Margin of 38.73%. This is in the better half of the industry: URI outperforms 71.43% 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
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.
URI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, URI has a worse debt to assets ratio.
2.2 Solvency
URI has an Altman-Z score of 3.16. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.16, URI perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 31.44, URI perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
A Debt/Equity ratio of 1.40 is on the high side and indicates that URI has dependencies on debt financing.
With a Debt to Equity ratio value of 1.40, URI is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.2
WACC9.8%
2.3 Liquidity
URI has a Current 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 Current ratio of 0.90. This is amonst the worse of the industry: URI underperforms 89.80% 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 worse Quick ratio (0.84) than 65.31% 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.
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-0.21%
EPS Next 2Y4.41%
EPS Next 3Y7.12%
EPS Next 5Y11.38%
Revenue Next Year6.18%
Revenue Next 2Y6.06%
Revenue Next 3Y6.39%
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.
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
A Price/Earnings ratio of 19.13 indicates a rather expensive valuation of URI.
URI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, URI is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.29, which indicates a rather expensive current valuation of URI.
Based on the Price/Forward Earnings ratio, URI is valued a bit cheaper than the industry average as 61.22% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, URI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.13 | ||
| Fwd PE | 17.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of URI indicates a somewhat cheap valuation: URI is cheaper than 69.39% of the companies listed 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 | 116.55 | ||
| EV/EBITDA | 9.34 |
4.3 Compensation for Growth
The excellent profitability rating of URI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.12
EPS Next 2Y4.41%
EPS Next 3Y7.12%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.93%, which is pretty low.
URI's Dividend Yield is a higher than the industry average which is at 2.08.
With a Dividend Yield of 0.93, URI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
URI has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
URI pays out 18.10% of its income as dividend. This is a sustainable payout ratio.
DP18.1%
EPS Next 2Y4.41%
EPS Next 3Y7.12%
815.18
+0.21 (+0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.6%
Inst Owner Change-1.42%
Ins Owners0.44%
Ins Owner Change-0.13%
Market Cap52.45B
Revenue(TTM)15.99B
Net Income(TTM)2.53B
Analysts77.04
Price Target1020.78 (25.22%)
Short Float %2.29%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)7.11%
PT rev (3m)18.25%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-2.81%
EPS NY rev (1m)-1.47%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)1.01%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.13 | ||
| Fwd PE | 17.29 | ||
| P/S | 3.28 | ||
| P/FCF | 116.55 | ||
| P/OCF | 10.53 | ||
| P/B | 5.83 | ||
| P/tB | 33.09 | ||
| EV/EBITDA | 9.34 |
EPS(TTM)42.62
EY5.23%
EPS(NY)47.14
Fwd EY5.78%
FCF(TTM)6.99
FCFY0.86%
OCF(TTM)77.43
OCFY9.5%
SpS248.46
BVpS139.88
TBVpS24.63
PEG (NY)N/A
PEG (5Y)1.12
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
WACC9.8%
ROIC/WACC1.2
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-0.21%
EPS Next 2Y4.41%
EPS Next 3Y7.12%
EPS Next 5Y11.38%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%5.94%
Revenue Next Year6.18%
Revenue Next 2Y6.06%
Revenue Next 3Y6.39%
Revenue Next 5Y8.15%
EBIT growth 1Y-0.96%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.62%
EBIT Next 3Y24.92%
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 -0.21% in the next year.