UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - NYSE:URI - US9113631090 - Common Stock
848.25 USD
+3.21 (+0.38%)
995.22 USD
+146.97 (+17.33%)
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 has a great profitability rating, there are quite some concerns on its financial health. URI has a correct valuation and a medium 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.
URI had a positive operating cash flow in each 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 74.51% 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 86.27% of the companies in the same industry.
URI has a better Return On Invested Capital (11.75%) than 78.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for URI is above the industry average of 10.20%.
| 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
With an excellent Profit Margin value of 15.83%, URI belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
URI's Profit Margin has improved in the last couple of years.
URI has a better Operating Margin (25.08%) than 84.31% of its industry peers.
URI's Operating Margin has improved in the last couple of years.
URI has a Gross Margin of 38.73%. This is in the better half of the industry: URI outperforms 70.59% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), URI is creating some value.
URI has less shares outstanding than it did 1 year ago.
URI has less shares outstanding than it did 5 years ago.
URI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.22 indicates that URI is not in any danger for bankruptcy at the moment.
The Altman-Z score of URI (3.22) is better than 62.75% 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.
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.
With a Debt to Equity ratio value of 1.40, URI is not doing good in the industry: 72.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.22 |
ROIC/WACC1.29
WACC9.13%
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: 88.24% of the companies in the same industry are doing better.
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.
The Quick ratio of URI (0.84) is worse than 66.67% of its industry peers.
| 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%.
Measured over the past years, URI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.13% on average per year.
URI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.73%.
Measured over the past years, URI shows a quite strong growth in Revenue. The Revenue has been growing by 10.41% on average per year.
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 11.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.15% on average over the next years. This is quite good.
EPS Next Y1.28%
EPS Next 2Y5.56%
EPS Next 3Y7.59%
EPS Next 5Y11.37%
Revenue Next Year5.54%
Revenue Next 2Y5.39%
Revenue Next 3Y5.62%
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
URI is valuated rather expensively with a Price/Earnings ratio of 19.90.
Based on the Price/Earnings ratio, URI is valued a bit cheaper than the industry average as 62.75% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of URI to the average of the S&P500 Index (25.83), we can say URI is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.61, which indicates a rather expensive current valuation of URI.
60.78% of the companies in the same industry are more expensive than URI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, URI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 17.61 |
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 72.55% 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 | 121.28 | ||
| EV/EBITDA | 9.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
URI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)15.55
PEG (5Y)1.16
EPS Next 2Y5.56%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.83%, which is pretty low.
URI's Dividend Yield is a higher than the industry average which is at 2.20.
Compared to an average S&P500 Dividend Yield of 2.39, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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
URI pays out 18.10% of its income as dividend. This is a sustainable payout ratio.
DP18.1%
EPS Next 2Y5.56%
EPS Next 3Y7.59%
848.25
+3.21 (+0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.6%
Inst Owner Change-1.36%
Ins Owners0.44%
Ins Owner Change0.14%
Market Cap54.58B
Revenue(TTM)15.99B
Net Income(TTM)2.53B
Analysts74.81
Price Target1009.98 (19.07%)
Short Float %2.59%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP18.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)11.86%
PT rev (3m)31.67%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 17.61 | ||
| P/S | 3.41 | ||
| P/FCF | 121.28 | ||
| P/OCF | 10.95 | ||
| P/B | 6.06 | ||
| P/tB | 34.43 | ||
| EV/EBITDA | 9.61 |
EPS(TTM)42.62
EY5.02%
EPS(NY)48.18
Fwd EY5.68%
FCF(TTM)6.99
FCFY0.82%
OCF(TTM)77.43
OCFY9.13%
SpS248.46
BVpS139.88
TBVpS24.63
PEG (NY)15.55
PEG (5Y)1.16
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 | 3.22 |
F-Score6
WACC9.13%
ROIC/WACC1.29
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 Y1.28%
EPS Next 2Y5.56%
EPS Next 3Y7.59%
EPS Next 5Y11.37%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%5.94%
Revenue Next Year5.54%
Revenue Next 2Y5.39%
Revenue Next 3Y5.62%
Revenue Next 5Y8.15%
EBIT growth 1Y-0.96%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.62%
EBIT Next 3Y24.92%
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.
What is the valuation status for URI stock?
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.
What is the financial health of UNITED RENTALS INC (URI) stock?
The financial health rating of UNITED RENTALS INC (URI) is 3 / 10.
Can you provide the expected EPS growth for URI stock?
The Earnings per Share (EPS) of UNITED RENTALS INC (URI) is expected to grow by 1.28% in the next year.