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UNITED RENTALS INC (URI) Stock Fundamental Analysis

NYSE:URI - New York Stock Exchange, Inc. - US9113631090 - Common Stock

789  +18 (+2.33%)

After market: 792.338 +3.34 (+0.42%)

Fundamental Rating

5

Taking everything into account, URI scores 5 out of 10 in our fundamental rating. URI was compared to 48 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.


Dividend Valuation Growth Profitability Health

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8

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.
In the past 5 years URI always reported a positive cash flow from operatings.
URI Yearly Net Income VS EBIT VS OCF VS FCFURI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

1.2 Ratios

URI's Return On Assets of 9.03% is fine compared to the rest of the industry. URI outperforms 74.47% of its industry peers.
URI's Return On Equity of 29.89% is amongst the best of the industry. URI outperforms 95.74% of its industry peers.
URI has a better Return On Invested Capital (12.50%) than 82.98% of its industry peers.
URI had an Average Return On Invested Capital over the past 3 years of 11.35%. This is in line with the industry average of 9.69%.
The last Return On Invested Capital (12.50%) for URI is above the 3 year average (11.35%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.03%
ROE 29.89%
ROIC 12.5%
ROA(3y)8.34%
ROA(5y)7.24%
ROE(3y)27.59%
ROE(5y)26.6%
ROIC(3y)11.35%
ROIC(5y)10.45%
URI Yearly ROA, ROE, ROICURI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

1.3 Margins

With an excellent Profit Margin value of 17.13%, URI belongs to the best of the industry, outperforming 89.36% 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 27.03%. This is amongst the best in the industry. URI outperforms 91.49% of its industry peers.
In the last couple of years the Operating Margin of URI has remained more or less at the same level.
With a decent Gross Margin value of 40.55%, URI is doing good in the industry, outperforming 70.21% of the companies in the same industry.
URI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 27.03%
PM (TTM) 17.13%
GM 40.55%
OM growth 3Y8.01%
OM growth 5Y1.27%
PM growth 3Y17.47%
PM growth 5Y4.43%
GM growth 3Y2.82%
GM growth 5Y-0.6%
URI Yearly Profit, Operating, Gross MarginsURI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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3

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
The debt/assets ratio for URI has been reduced compared to a year ago.
URI Yearly Shares OutstandingURI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
URI Yearly Total Debt VS Total AssetsURI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

2.2 Solvency

URI has an Altman-Z score of 3.15. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
URI's Altman-Z score of 3.15 is in line compared to the rest of the industry. URI outperforms 55.32% of its industry peers.
URI has a debt to FCF ratio of 18.03. This is a negative value and a sign of low solvency as URI would need 18.03 years to pay back of all of its debts.
URI has a Debt to FCF ratio (18.03) which is in line with its industry peers.
URI has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.38, URI is doing worse than 65.96% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF 18.03
Altman-Z 3.15
ROIC/WACC1.11
WACC11.31%
URI Yearly LT Debt VS Equity VS FCFURI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 0.82 indicates that URI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, URI is doing worse than 91.49% of the companies in the same industry.
URI has a Quick Ratio of 0.82. 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 0.77 is on the low side compared to the rest of the industry. URI is outperformed by 74.47% of its industry peers.
Industry RankSector Rank
Current Ratio 0.82
Quick Ratio 0.77
URI Yearly Current Assets VS Current LiabilitesURI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.19% over the past year.
Measured over the past years, URI shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.14% on average per year.
Looking at the last year, URI shows a small growth in Revenue. The Revenue has grown by 7.76% in the last year.
The Revenue has been growing by 12.24% on average over the past years. This is quite good.
EPS 1Y (TTM)9.19%
EPS 3Y32.7%
EPS 5Y20.14%
EPS Q2Q%0.6%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y18.88%
Revenue growth 5Y12.24%
Sales Q2Q%6.03%

3.2 Future

The Earnings Per Share is expected to grow by 9.88% on average over the next years. This is quite good.
Based on estimates for the next years, URI will show a small growth in Revenue. The Revenue will grow by 5.46% on average per year.
EPS Next Y6.77%
EPS Next 2Y7.58%
EPS Next 3Y8.22%
EPS Next 5Y9.88%
Revenue Next Year6.67%
Revenue Next 2Y5.48%
Revenue Next 3Y5.36%
Revenue Next 5Y5.46%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
URI Yearly Revenue VS EstimatesURI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
URI Yearly EPS VS EstimatesURI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20 40 60

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.39, which indicates a rather expensive current 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 28.29, URI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.70, URI is valued correctly.
URI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, URI is valued a bit cheaper.
Industry RankSector Rank
PE 18.39
Fwd PE 16.7
URI Price Earnings VS Forward Price EarningsURI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, URI is valued a bit cheaper than 63.83% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as URI.
Industry RankSector Rank
P/FCF 69.68
EV/EBITDA 9.22
URI Per share dataURI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

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)2.72
PEG (5Y)0.91
EPS Next 2Y7.58%
EPS Next 3Y8.22%

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2

5. Dividend

5.1 Amount

URI has a yearly dividend return of 0.86%, which is pretty low.
URI's Dividend Yield is comparable with the industry average which is at 1.84.
With a Dividend Yield of 0.86, URI pays less dividend than the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 0.86%

5.2 History

URI is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
URI Yearly Dividends per shareURI Yearly Dividends per shareYearly Dividends per share 2023 2024 2 4 6

5.3 Sustainability

URI pays out 16.65% of its income as dividend. This is a sustainable payout ratio.
DP16.65%
EPS Next 2Y7.58%
EPS Next 3Y8.22%
URI Yearly Income VS Free CF VS DividendURI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
URI Dividend Payout.URI Dividend Payout, showing the Payout Ratio.URI Dividend Payout.PayoutRetained Earnings

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UNITED RENTALS INC

NYSE:URI (1/21/2025, 8:04:00 PM)

After market: 792.338 +3.34 (+0.42%)

789

+18 (+2.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-23 2024-10-23/amc
Earnings (Next)01-29 2025-01-29/amc
Inst Owners93.89%
Inst Owner Change-2.38%
Ins Owners0.47%
Ins Owner Change-0.23%
Market Cap51.77B
Analysts68.89
Price Target857.06 (8.63%)
Short Float %2.54%
Short Ratio2.95
Dividend
Industry RankSector Rank
Dividend Yield 0.86%
Yearly Dividend5.94
Dividend Growth(5Y)N/A
DP16.65%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.93%
Min EPS beat(2)-6.35%
Max EPS beat(2)0.5%
EPS beat(4)3
Avg EPS beat(4)1.24%
Min EPS beat(4)-6.35%
Max EPS beat(4)8.82%
EPS beat(8)5
Avg EPS beat(8)1.18%
EPS beat(12)9
Avg EPS beat(12)4.47%
EPS beat(16)11
Avg EPS beat(16)4.58%
Revenue beat(2)0
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)-1.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)1.86%
Revenue beat(8)5
Avg Revenue beat(8)0.6%
Revenue beat(12)8
Avg Revenue beat(12)0.58%
Revenue beat(16)11
Avg Revenue beat(16)0.8%
PT rev (1m)0.56%
PT rev (3m)16.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 18.39
Fwd PE 16.7
P/S 3.46
P/FCF 69.68
P/OCF 10.54
P/B 6.03
P/tB 50.07
EV/EBITDA 9.22
EPS(TTM)42.91
EY5.44%
EPS(NY)47.25
Fwd EY5.99%
FCF(TTM)11.32
FCFY1.44%
OCF(TTM)74.86
OCFY9.49%
SpS228.25
BVpS130.77
TBVpS15.76
PEG (NY)2.72
PEG (5Y)0.91
Profitability
Industry RankSector Rank
ROA 9.03%
ROE 29.89%
ROCE 16.6%
ROIC 12.5%
ROICexc 12.75%
ROICexgc 18.63%
OM 27.03%
PM (TTM) 17.13%
GM 40.55%
FCFM 4.96%
ROA(3y)8.34%
ROA(5y)7.24%
ROE(3y)27.59%
ROE(5y)26.6%
ROIC(3y)11.35%
ROIC(5y)10.45%
ROICexc(3y)11.47%
ROICexc(5y)10.55%
ROICexgc(3y)16.79%
ROICexgc(5y)15.85%
ROCE(3y)15.07%
ROCE(5y)13.87%
ROICexcg growth 3Y12.08%
ROICexcg growth 5Y4.48%
ROICexc growth 3Y15.66%
ROICexc growth 5Y7.02%
OM growth 3Y8.01%
OM growth 5Y1.27%
PM growth 3Y17.47%
PM growth 5Y4.43%
GM growth 3Y2.82%
GM growth 5Y-0.6%
F-Score5
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF 18.03
Debt/EBITDA 1.73
Cap/Depr 146.9%
Cap/Sales 27.83%
Interest Coverage 6.11
Cash Conversion 71.33%
Profit Quality 28.97%
Current Ratio 0.82
Quick Ratio 0.77
Altman-Z 3.15
F-Score5
WACC11.31%
ROIC/WACC1.11
Cap/Depr(3y)158.02%
Cap/Depr(5y)129.52%
Cap/Sales(3y)31%
Cap/Sales(5y)26.34%
Profit Quality(3y)32.29%
Profit Quality(5y)64.57%
High Growth Momentum
Growth
EPS 1Y (TTM)9.19%
EPS 3Y32.7%
EPS 5Y20.14%
EPS Q2Q%0.6%
EPS Next Y6.77%
EPS Next 2Y7.58%
EPS Next 3Y8.22%
EPS Next 5Y9.88%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y18.88%
Revenue growth 5Y12.24%
Sales Q2Q%6.03%
Revenue Next Year6.67%
Revenue Next 2Y5.48%
Revenue Next 3Y5.36%
Revenue Next 5Y5.46%
EBIT growth 1Y6.19%
EBIT growth 3Y28.41%
EBIT growth 5Y13.66%
EBIT Next Year79.25%
EBIT Next 3Y25.23%
EBIT Next 5Y17.04%
FCF growth 1Y60.13%
FCF growth 3Y-24.95%
FCF growth 5Y2.44%
OCF growth 1Y27.58%
OCF growth 3Y20.96%
OCF growth 5Y10.52%