UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:URI - US9113631090 - Common Stock
787.04 USD
-116.15 (-12.86%)
791 USD
+3.96 (+0.5%)
Overall URI gets a fundamental rating of 4 out of 10. We evaluated URI against 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 is valued correctly, but it does not seem to be growing.
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.
- Of the past 5 years URI 4 years were profitable.
- URI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- URI's Return On Assets of 8.42% is fine compared to the rest of the industry. URI outperforms 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.
- 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
- 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.
- In the last couple of years the Profit Margin of URI has grown nicely.
- URI's Operating Margin of 25.08% is amongst the best of 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's Gross Margin of 38.73% is fine compared to the rest of the industry. URI outperforms 72.00% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so URI is still creating some value.
- URI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 3.32 indicates that URI is not in any danger for bankruptcy at the moment.
- The Altman-Z score of URI (3.32) is comparable to the rest of the industry.
- 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.
- URI has a Debt to FCF ratio (31.44) which is in line with its industry peers.
- URI has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of URI (1.40) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.32 |
ROIC/WACC1.24
WACC9.51%
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 worse Current ratio (0.90) than 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 has a Quick ratio of 0.84. This is in the lower half of the industry: URI underperforms 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 -2.59% in the last year.
- The Earnings Per Share has been growing by 19.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.59%
EPS 3Y8.92%
EPS 5Y19.24%
EPS Q2Q%-4.31%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.76%
3.2 Future
- The Earnings Per Share is expected to grow by 15.17% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.66% on average over the next years. This is quite good.
EPS Next Y12.35%
EPS Next 2Y12.95%
EPS Next 3Y15.75%
EPS Next 5Y15.17%
Revenue Next Year6.03%
Revenue Next 2Y6.47%
Revenue Next 3Y7.61%
Revenue Next 5Y8.66%
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.
4. Valuation
4.1 Price/Earnings Ratio
- URI is valuated rather expensively with a Price/Earnings ratio of 18.69.
- Compared to the rest of the industry, the Price/Earnings ratio of URI indicates a somewhat cheap valuation: URI is cheaper than 62.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. URI is valued slightly cheaper when compared to this.
- URI is valuated correctly with a Price/Forward Earnings ratio of 16.63.
- Based on the Price/Forward Earnings ratio, URI is valued a bit cheaper than 64.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. URI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, URI is valued a bit cheaper than 74.00% of the companies 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 | 112.53 | ||
| EV/EBITDA | 10.14 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- URI has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as URI's earnings are expected to grow with 15.75% in the coming years.
PEG (NY)1.51
PEG (5Y)0.97
EPS Next 2Y12.95%
EPS Next 3Y15.75%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.79%, URI is not a good candidate for dividend investing.
- URI's Dividend Yield is comparable with the industry average which is at 1.31.
- 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 | 0.79% |
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 2Y12.95%
EPS Next 3Y15.75%
UNITED RENTALS INC / URI FAQ
What is the ChartMill fundamental rating of UNITED RENTALS INC (URI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to URI.
Can you provide the valuation status for UNITED RENTALS INC?
ChartMill assigns a valuation rating of 5 / 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 7 / 10.
Can you provide the PE and PB ratios for URI stock?
The Price/Earnings (PE) ratio for UNITED RENTALS INC (URI) is 18.69 and the Price/Book (PB) ratio is 5.63.
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%.