UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:URI - US9113631090 - Common Stock
940.09 USD
+29.54 (+3.24%)
940.09 USD
0 (0%)
Taking everything into account, URI scores 5 out of 10 in our fundamental rating. URI was compared to 50 industry peers in the Trading Companies & Distributors industry. URI has an excellent profitability rating, but there are concerns on its financial health. URI has a correct valuation and a medium 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.
- In the past 5 years URI always reported a positive cash flow from operatings.
1.2 Ratios
- URI has a better Return On Assets (8.42%) than 78.00% of its industry peers.
- Looking at the Return On Equity, with a value of 28.11%, URI belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
- URI has a Return On Invested Capital of 11.75%. This is in the better half of the industry: URI outperforms 80.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for URI is above the industry average of 9.63%.
| 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
- The Profit Margin of URI (15.83%) is better than 86.00% of its industry peers.
- URI's Profit Margin has improved in the last couple of years.
- The Operating Margin of URI (25.08%) is better than 86.00% 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 72.00% 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.
- The number of shares outstanding for URI has been reduced compared to 1 year ago.
- The number of shares outstanding for URI has been reduced compared to 5 years ago.
- URI has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.34 indicates that URI is not in any danger for bankruptcy at the moment.
- URI has a Altman-Z score (3.34) which is in line with 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 has a Debt to FCF ratio of 31.44. This is comparable 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.
- URI has a Debt to Equity ratio of 1.40. This is in the lower half of the industry: URI underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.23
WACC9.58%
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 88.00% 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's Quick ratio of 0.84 is on the low side compared to the rest of the industry. URI is outperformed by 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.
- The Earnings Per Share has been growing by 17.13% on average over the past years. This is quite good.
- Looking at the last year, URI shows a small growth in Revenue. The Revenue has grown by 6.73% in the last 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)-0.68%
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.
- 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-0.51%
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- Based on the Price/Earnings ratio of 22.06, the valuation of URI can be described as rather expensive.
- Based on the Price/Earnings ratio, URI is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.94. URI is around the same levels.
- The Price/Forward Earnings ratio is 19.78, which indicates a rather expensive current valuation of URI.
- URI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. URI is cheaper than 64.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of URI to the average of the S&P500 Index (23.94), we can say URI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 19.78 |
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 72.00% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as URI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 134.41 | ||
| EV/EBITDA | 10.21 |
4.3 Compensation for Growth
- The excellent profitability rating of URI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.29
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.
- With a Dividend Yield of 0.77, URI pays less dividend than the S&P500 average, which is at 1.83.
| 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
- URI pays out 18.10% of its income as dividend. This is a sustainable payout ratio.
DP18.1%
EPS Next 2Y4.84%
EPS Next 3Y7.65%
940.09
+29.54 (+3.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners94.04%
Inst Owner Change0.22%
Ins Owners0.44%
Ins Owner Change-0.15%
Market Cap60.49B
Revenue(TTM)15.99B
Net Income(TTM)2.53B
Analysts77.78
Price Target992.65 (5.59%)
Short Float %2.45%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP18.1%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-2.14%
PT rev (3m)4.16%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 19.78 | ||
| P/S | 3.78 | ||
| P/FCF | 134.41 | ||
| P/OCF | 12.14 | ||
| P/B | 6.72 | ||
| P/tB | 38.16 | ||
| EV/EBITDA | 10.21 |
EPS(TTM)42.62
EY4.53%
EPS(NY)47.53
Fwd EY5.06%
FCF(TTM)6.99
FCFY0.74%
OCF(TTM)77.43
OCFY8.24%
SpS248.46
BVpS139.88
TBVpS24.63
PEG (NY)N/A
PEG (5Y)1.29
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 | 3.34 |
F-Score6
WACC9.58%
ROIC/WACC1.23
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-0.51%
EPS Next 2Y4.84%
EPS Next 3Y7.65%
EPS Next 5Y11.38%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%5.94%
Revenue Next Year6.14%
Revenue Next 2Y6.1%
Revenue Next 3Y6.33%
Revenue Next 5Y8.15%
EBIT growth 1Y-0.96%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.6%
EBIT Next 3Y25.84%
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.
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 22.06 and the Price/Book (PB) ratio is 6.72.
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%.