UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:URI - US9113631090 - Common Stock
938.79 USD
+20.93 (+2.28%)
938.79 USD
0 (0%)
Overall URI gets a fundamental rating of 5 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. While showing a medium growth rate, URI is valued expensive at the moment.
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.
In the past 5 years URI has always been profitable.
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.
URI has a better Return On Equity (28.11%) than 88.00% of its industry peers.
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
URI's Profit Margin of 15.83% is amongst the best of the industry. URI outperforms 86.00% of its industry peers.
URI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.08%, 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 Operating Margin of URI has grown nicely.
With a decent Gross Margin value of 38.73%, URI is doing good in the industry, outperforming 72.00% of the companies in the same industry.
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.
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 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.39 indicates that URI is not in any danger for bankruptcy at the moment.
URI has a Altman-Z score (3.39) which 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.
With a Debt to FCF ratio value of 31.44, URI perfoms like the industry average, outperforming 50.00% 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 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.39 |
ROIC/WACC1.23
WACC9.55%
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.
With a Current ratio value of 0.90, URI is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.84 indicates that URI may have some problems paying its short term obligations.
URI has a worse Quick ratio (0.84) than 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.
The Revenue has been growing by 10.41% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 11.38% on average over the next years. This is quite good.
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 2Y6.13%
Revenue Next 3Y6.48%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.03, the valuation of URI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of URI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.19. URI is around the same levels.
URI is valuated rather expensively with a Price/Forward Earnings ratio of 19.75.
The rest of the industry has a similar Price/Forward Earnings ratio as URI.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, URI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 19.75 |
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 66.00% 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 | 134.23 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
URI has an outstanding profitability rating, which 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 0.78%, URI is not a good candidate for dividend investing.
URI's Dividend Yield is comparable with the industry average which is at 1.35.
With a Dividend Yield of 0.78, URI pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
URI has paid a dividend for less than 5 years, so there is no long track record yet.
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%
938.79
+20.93 (+2.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.04%
Inst Owner Change0.25%
Ins Owners0.44%
Ins Owner Change-0.15%
Market Cap60.40B
Revenue(TTM)15.99B
Net Income(TTM)2.53B
Analysts77.78
Price Target993.45 (5.82%)
Short Float %2.56%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)-2.06%
PT rev (3m)4.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.18%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 19.75 | ||
| P/S | 3.78 | ||
| P/FCF | 134.23 | ||
| P/OCF | 12.12 | ||
| P/B | 6.71 | ||
| P/tB | 38.11 | ||
| EV/EBITDA | 10.47 |
EPS(TTM)42.62
EY4.54%
EPS(NY)47.53
Fwd EY5.06%
FCF(TTM)6.99
FCFY0.75%
OCF(TTM)77.43
OCFY8.25%
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 | 3.39 |
F-Score6
WACC9.55%
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 2Y6.13%
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 3 / 10 to UNITED RENTALS INC (URI). This can be considered as Overvalued.
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 22.03 and the Price/Book (PB) ratio is 6.71.
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%.