UNITED RENTALS INC (URI)
US9113631090 - Common Stock
Overall URI gets a fundamental rating of 5 out of 10. We evaluated URI against 51 industry peers in the Trading Companies & Distributors industry. While URI belongs to the best of the industry regarding profitability, there are concerns on its financial health. URI is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years URI has been profitable.
Each year in the past 5 years URI had a positive operating cash flow.
1.2 Ratios
URI's Return On Assets of 9.03% is fine compared to the rest of the industry. URI outperforms 74.51% of its industry peers.
The Return On Equity of URI (29.89%) is better than 94.12% of its industry peers.
With an excellent Return On Invested Capital value of 12.50%, URI belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
URI had an Average Return On Invested Capital over the past 3 years of 11.35%. This is above the industry average of 9.29%.
The 3 year average ROIC (11.35%) for URI is below the current ROIC(12.50%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
URI has a Profit Margin of 17.13%. This is amongst the best in the industry. URI outperforms 90.20% of its industry peers.
URI's Profit Margin has improved in the last couple of years.
The Operating Margin of URI (27.03%) is better than 92.16% of its industry peers.
In the last couple of years the Operating Margin of URI has remained more or less at the same level.
URI has a better Gross Margin (40.55%) than 70.59% 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 | 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%
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.
Compared to 1 year ago, URI has less shares outstanding
URI has less shares outstanding than it did 5 years ago.
URI has a better debt/assets ratio than last year.
2.2 Solvency
URI has an Altman-Z score of 3.29. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
URI has a Altman-Z score of 3.29. This is in the better half of the industry: URI outperforms 60.78% 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.
The Debt to FCF ratio of URI (18.03) is comparable to the rest of the industry.
URI has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
URI's Debt to Equity ratio of 1.38 is on the low side compared to the rest of the industry. URI is outperformed by 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 18.03 | ||
| Altman-Z | 3.29 |
ROIC/WACC1.11
WACC11.25%
2.3 Liquidity
URI has a Current 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.
With a Current ratio value of 0.82, URI is not doing good in the industry: 92.16% of the companies in the same industry are doing better.
A Quick Ratio of 0.77 indicates that URI may have some problems paying its short term obligations.
URI has a worse Quick ratio (0.77) than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.19% over the past year.
The Earnings Per Share has been growing by 20.14% on average over the past years. This is a very strong growth
Looking at the last year, URI shows a small growth in Revenue. The Revenue has grown by 7.76% in the last year.
URI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.24% yearly.
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
URI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.52% yearly.
The Revenue is expected to grow by 5.06% on average over the next years.
EPS Next Y7.41%
EPS Next 2Y7.6%
EPS Next 3Y7.81%
EPS Next 5Y10.52%
Revenue Next Year6.66%
Revenue Next 2Y5.45%
Revenue Next 3Y5.17%
Revenue Next 5Y5.06%
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
URI is valuated rather expensively with a Price/Earnings ratio of 19.59.
The rest of the industry has a similar Price/Earnings ratio as URI.
When comparing the Price/Earnings ratio of URI to the average of the S&P500 Index (28.96), we can say URI is valued slightly cheaper.
URI is valuated rather expensively with a Price/Forward Earnings ratio of 17.79.
URI's Price/Forward Earnings is on the same level as the industry average.
URI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 17.79 |
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 68.63% 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 | 74.25 | ||
| EV/EBITDA | 9.89 |
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)2.65
PEG (5Y)0.97
EPS Next 2Y7.6%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.77%, which is pretty low.
Compared to an average industry Dividend Yield of 1.73, URI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
URI does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
16.65% of the earnings are spent on dividend by URI. This is a low number and sustainable payout ratio.
DP16.65%
EPS Next 2Y7.6%
EPS Next 3Y7.81%
UNITED RENTALS INC
NYSE:URI (11/21/2024, 8:04:00 PM)
After market: 840.74 0 (0%)840.74
+20.19 (+2.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap55.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 17.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.65
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 29.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.03% | ||
| PM (TTM) | 17.13% | ||
| GM | 40.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.19%
EPS 3Y32.7%
EPS 5Y
EPS Q2Q%
EPS Next Y7.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.76%
Revenue growth 3Y18.88%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y