UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:URI - US9113631090 - Common Stock
809.32 USD
-7.93 (-0.97%)
809.32 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to URI. URI was compared to 50 industry peers in the Trading Companies & Distributors industry. While URI has a great profitability rating, there are quite some concerns on its financial health. URI has a decent growth rate and is not valued too expensively.
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 8.42%, URI is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
URI has a Return On Equity of 28.11%. This is amongst the best in the industry. URI outperforms 88.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.75%, URI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
URI had an Average Return On Invested Capital over the past 3 years of 12.29%. This 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
Looking at the Profit Margin, with a value of 15.83%, URI belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
URI's Profit Margin has improved in the last couple of years.
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.
URI has a better Gross Margin (38.73%) than 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
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.
Compared to 1 year ago, URI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.17 indicates that URI is not in any danger for bankruptcy at the moment.
URI has a Altman-Z score of 3.17. This is comparable to the rest of the industry: URI outperforms 52.00% of its industry peers.
URI has a debt to FCF ratio of 31.44. This is a negative value and a sign of low solvency as URI would need 31.44 years to pay back of all of its debts.
With a Debt to FCF ratio value of 31.44, URI perfoms like the industry average, outperforming 48.00% 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.
The Debt to Equity ratio of URI (1.40) is worse than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.24
WACC9.48%
2.3 Liquidity
A Current Ratio of 0.90 indicates that URI may have some problems paying its short term obligations.
URI has a Current ratio of 0.90. This is amonst the worse of the industry: URI underperforms 90.00% 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.
With a Quick ratio value of 0.84, URI is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
URI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.68%.
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.
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
Based on estimates for the next years, URI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.38% on average per year.
URI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.15% yearly.
EPS Next Y-0.51%
EPS Next 2Y4.84%
EPS Next 3Y7.65%
EPS Next 5Y11.38%
Revenue Next Year6.14%
Revenue Next 2Y6.13%
Revenue Next 3Y6.48%
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
With a Price/Earnings ratio of 18.99, URI is valued on the expensive side.
66.00% of the companies in the same industry are more expensive than URI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of URI to the average of the S&P500 Index (26.51), we can say URI is valued slightly cheaper.
URI is valuated rather expensively with a Price/Forward Earnings ratio of 17.03.
Based on the Price/Forward Earnings ratio, URI is valued a bit cheaper than 72.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, URI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
74.00% of the companies in the same industry are more expensive than URI, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as URI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 115.71 | ||
| EV/EBITDA | 9.36 |
4.3 Compensation for Growth
The excellent profitability rating of URI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y4.84%
EPS Next 3Y7.65%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.87%, which is pretty low.
URI's Dividend Yield is a higher than the industry average which is at 0.98.
Compared to an average S&P500 Dividend Yield of 2.00, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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%
809.32
-7.93 (-0.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.07%
Inst Owner Change-1.39%
Ins Owners0.44%
Ins Owner Change-0.15%
Market Cap52.07B
Revenue(TTM)15.99B
Net Income(TTM)2.53B
Analysts77.78
Price Target993.45 (22.75%)
Short Float %2.56%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)-2.68%
PT rev (3m)10.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.18%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 17.03 | ||
| P/S | 3.26 | ||
| P/FCF | 115.71 | ||
| P/OCF | 10.45 | ||
| P/B | 5.79 | ||
| P/tB | 32.85 | ||
| EV/EBITDA | 9.36 |
EPS(TTM)42.62
EY5.27%
EPS(NY)47.53
Fwd EY5.87%
FCF(TTM)6.99
FCFY0.86%
OCF(TTM)77.43
OCFY9.57%
SpS248.46
BVpS139.88
TBVpS24.63
PEG (NY)N/A
PEG (5Y)1.11
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 | 3.17 |
F-Score6
WACC9.48%
ROIC/WACC1.24
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 2Y6.13%
Revenue Next 3Y6.48%
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 18.99 and the Price/Book (PB) ratio is 5.79.
Is the dividend of UNITED RENTALS INC sustainable?
The dividend rating of UNITED RENTALS INC (URI) is 3 / 10 and the dividend payout ratio is 18.1%.