UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:URI - US9113631090 - Common Stock
827.94 USD
+3.17 (+0.38%)
827.94 USD
0 (0%)
URI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 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 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.
Each year in the past 5 years URI had a positive operating cash flow.
1.2 Ratios
URI has a better Return On Assets (8.42%) than 78.00% of its industry peers.
URI's Return On Equity of 28.11% is amongst the best of the industry. URI outperforms 88.00% of its industry peers.
The Return On Invested Capital of URI (11.75%) is better than 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 9.63%.
| 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
With an excellent Profit Margin value of 15.83%, URI belongs to the best 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.
With an excellent Operating Margin value of 25.08%, URI belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
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 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
URI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
URI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for URI has been reduced compared to 5 years ago.
Compared to 1 year ago, URI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.18 indicates that URI is not in any danger for bankruptcy at the moment.
URI has a Altman-Z score (3.18) which is in line with 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.
With a Debt to Equity ratio value of 1.40, URI is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 31.44 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.24
WACC9.49%
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.
The Current ratio of URI (0.90) is worse than 90.00% of its industry peers.
A Quick Ratio of 0.84 indicates that URI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, URI is doing worse than 68.00% of the companies in the same industry.
| 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.
URI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.73%.
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.
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 2Y4.8%
EPS Next 3Y7.59%
EPS Next 5Y11.38%
Revenue Next Year6.13%
Revenue Next 2Y6.12%
Revenue Next 3Y6.51%
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
With a Price/Earnings ratio of 19.43, URI is valued on the expensive side.
URI's Price/Earnings ratio is a bit cheaper when compared to the industry. URI is cheaper than 68.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of URI to the average of the S&P500 Index (26.57), we can say URI is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.43 indicates a rather expensive valuation of URI.
Based on the Price/Forward Earnings ratio, URI is valued a bit cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of URI to the average of the S&P500 Index (24.04), we can say URI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 17.43 |
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 | 118.38 | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
URI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y4.8%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, URI is not a good candidate for dividend investing.
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 1.88, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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
URI pays out 18.10% of its income as dividend. This is a sustainable payout ratio.
DP18.1%
EPS Next 2Y4.8%
EPS Next 3Y7.59%
827.94
+3.17 (+0.38%)
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 Cap53.27B
Revenue(TTM)15.99B
Net Income(TTM)2.53B
Analysts77.78
Price TargetN/A
Short Float %2.62%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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)0.43%
PT rev (3m)12.34%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 17.43 | ||
| P/S | 3.33 | ||
| P/FCF | 118.38 | ||
| P/OCF | 10.69 | ||
| P/B | 5.92 | ||
| P/tB | 33.61 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)42.62
EY5.15%
EPS(NY)47.49
Fwd EY5.74%
FCF(TTM)6.99
FCFY0.84%
OCF(TTM)77.43
OCFY9.35%
SpS248.46
BVpS139.88
TBVpS24.63
PEG (NY)N/A
PEG (5Y)1.13
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 | 3.18 |
F-Score6
WACC9.49%
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 2Y4.8%
EPS Next 3Y7.59%
EPS Next 5Y11.38%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%5.94%
Revenue Next Year6.13%
Revenue Next 2Y6.12%
Revenue Next 3Y6.51%
Revenue Next 5Y8.15%
EBIT growth 1Y-0.96%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.55%
EBIT Next 3Y25.93%
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 decline by -0.51% in the next year.