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UNITED RENTALS INC (URI) Stock Fundamental Analysis

NYSE:URI - New York Stock Exchange, Inc. - US9113631090 - Common Stock - Currency: USD

591.5  +6.27 (+1.07%)

After market: 591.5 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to URI. URI was compared to 48 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 not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

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.
In the past 5 years URI has always been profitable.
Each year in the past 5 years URI had a positive operating cash flow.
URI Yearly Net Income VS EBIT VS OCF VS FCFURI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

1.2 Ratios

With a decent Return On Assets value of 9.14%, URI is doing good in the industry, outperforming 79.17% of the companies in the same industry.
The Return On Equity of URI (29.87%) is better than 89.58% of its industry peers.
The Return On Invested Capital of URI (12.40%) is better than 79.17% of its industry peers.
URI had an Average Return On Invested Capital over the past 3 years of 12.29%. This is above the industry average of 9.25%.
The last Return On Invested Capital (12.40%) for URI is above the 3 year average (12.29%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.14%
ROE 29.87%
ROIC 12.4%
ROA(3y)9.11%
ROA(5y)7.83%
ROE(3y)29.83%
ROE(5y)26.44%
ROIC(3y)12.29%
ROIC(5y)11.04%
URI Yearly ROA, ROE, ROICURI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

URI has a Profit Margin of 16.78%. This is amongst the best in the industry. URI outperforms 89.58% of its industry peers.
URI's Profit Margin has improved in the last couple of years.
URI's Operating Margin of 26.51% is amongst the best of the industry. URI outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of URI has grown nicely.
URI has a Gross Margin of 40.08%. This is in the better half of the industry: URI outperforms 70.83% of its industry peers.
URI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 26.51%
PM (TTM) 16.78%
GM 40.08%
OM growth 3Y4.11%
OM growth 5Y2.83%
PM growth 3Y5.56%
PM growth 5Y5.97%
GM growth 3Y0.35%
GM growth 5Y0.42%
URI Yearly Profit, Operating, Gross MarginsURI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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2

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.
The number of shares outstanding for URI has been reduced compared to 1 year ago.
The number of shares outstanding for URI has been reduced compared to 5 years ago.
The debt/assets ratio for URI is higher compared to a year ago.
URI Yearly Shares OutstandingURI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
URI Yearly Total Debt VS Total AssetsURI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

URI has an Altman-Z score of 2.89. This is not the best score and indicates that URI is in the grey zone with still only limited risk for bankruptcy at the moment.
URI has a Altman-Z score (2.89) which is comparable to the rest of the industry.
URI has a debt to FCF ratio of 32.00. This is a negative value and a sign of low solvency as URI would need 32.00 years to pay back of all of its debts.
The Debt to FCF ratio of URI (32.00) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.42 is on the high side and indicates that URI has dependencies on debt financing.
URI has a worse Debt to Equity ratio (1.42) than 68.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.42
Debt/FCF 32
Altman-Z 2.89
ROIC/WACC1.3
WACC9.51%
URI Yearly LT Debt VS Equity VS FCFURI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 0.98 indicates that URI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, URI is doing worse than 87.50% of the companies in the same industry.
A Quick Ratio of 0.92 indicates that URI may have some problems paying its short term obligations.
URI's Quick ratio of 0.92 is on the low side compared to the rest of the industry. URI is outperformed by 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.92
URI Yearly Current Assets VS Current LiabilitesURI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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4

3. Growth

3.1 Past

URI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.93%.
URI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.13% yearly.
Looking at the last year, URI shows a small growth in Revenue. The Revenue has grown by 7.07% in the last year.
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)5.93%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%2.93%
Revenue 1Y (TTM)7.07%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%9.84%

3.2 Future

The Earnings Per Share is expected to grow by 8.07% on average over the next years. This is quite good.
Based on estimates for the next years, URI will show a small growth in Revenue. The Revenue will grow by 5.36% on average per year.
EPS Next Y2.85%
EPS Next 2Y6.61%
EPS Next 3Y8.07%
EPS Next 5Y8.07%
Revenue Next Year4.34%
Revenue Next 2Y4.76%
Revenue Next 3Y4.95%
Revenue Next 5Y5.36%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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.
URI Yearly Revenue VS EstimatesURI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B
URI Yearly EPS VS EstimatesURI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20 40 60

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5

4. Valuation

4.1 Price/Earnings Ratio

URI is valuated correctly with a Price/Earnings ratio of 13.68.
Based on the Price/Earnings ratio, URI is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, URI is valued rather cheaply.
A Price/Forward Earnings ratio of 13.30 indicates a correct valuation of URI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of URI indicates a somewhat cheap valuation: URI is cheaper than 77.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, URI is valued a bit cheaper.
Industry RankSector Rank
PE 13.68
Fwd PE 13.3
URI Price Earnings VS Forward Price EarningsURI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

72.92% of the companies in the same industry are more expensive than URI, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as URI.
Industry RankSector Rank
P/FCF 92.23
EV/EBITDA 7.4
URI Per share dataURI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

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)4.8
PEG (5Y)0.8
EPS Next 2Y6.61%
EPS Next 3Y8.07%

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3

5. Dividend

5.1 Amount

URI has a Yearly Dividend Yield of 1.13%.
In the last 3 months the price of URI has falen by -23.28%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
URI's Dividend Yield is a higher than the industry average which is at 2.26.
With a Dividend Yield of 1.13, URI pays less dividend than the S&P500 average, which is at 2.52.
Industry RankSector Rank
Dividend Yield 1.13%

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
URI Yearly Dividends per shareURI Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 2 4 6

5.3 Sustainability

URI pays out 16.85% of its income as dividend. This is a sustainable payout ratio.
DP16.85%
EPS Next 2Y6.61%
EPS Next 3Y8.07%
URI Yearly Income VS Free CF VS DividendURI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
URI Dividend Payout.URI Dividend Payout, showing the Payout Ratio.URI Dividend Payout.PayoutRetained Earnings

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UNITED RENTALS INC

NYSE:URI (4/17/2025, 8:04:00 PM)

After market: 591.5 0 (0%)

591.5

+6.27 (+1.07%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)01-29 2025-01-29/amc
Earnings (Next)04-23 2025-04-23/amc
Inst Owners92.93%
Inst Owner Change1.62%
Ins Owners0.49%
Ins Owner Change2.77%
Market Cap38.64B
Analysts72.59
Price Target773.61 (30.79%)
Short Float %2.7%
Short Ratio2.42
Dividend
Industry RankSector Rank
Dividend Yield 1.13%
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP16.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-12 2025-02-12 (1.79)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.91%
Min EPS beat(2)-6.35%
Max EPS beat(2)-1.46%
EPS beat(4)2
Avg EPS beat(4)0.38%
Min EPS beat(4)-6.35%
Max EPS beat(4)8.82%
EPS beat(8)5
Avg EPS beat(8)1.89%
EPS beat(12)8
Avg EPS beat(12)3.61%
EPS beat(16)10
Avg EPS beat(16)3.36%
Revenue beat(2)1
Avg Revenue beat(2)0.8%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)2.99%
Revenue beat(4)2
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)2.99%
Revenue beat(8)6
Avg Revenue beat(8)1.1%
Revenue beat(12)8
Avg Revenue beat(12)0.81%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)-6.42%
PT rev (3m)-9.74%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)-1.9%
EPS NY rev (3m)-5.87%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.01%
Valuation
Industry RankSector Rank
PE 13.68
Fwd PE 13.3
P/S 2.52
P/FCF 92.23
P/OCF 8.5
P/B 4.48
P/tB 36.49
EV/EBITDA 7.4
EPS(TTM)43.24
EY7.31%
EPS(NY)44.47
Fwd EY7.52%
FCF(TTM)6.41
FCFY1.08%
OCF(TTM)69.59
OCFY11.76%
SpS234.88
BVpS131.98
TBVpS16.21
PEG (NY)4.8
PEG (5Y)0.8
Profitability
Industry RankSector Rank
ROA 9.14%
ROE 29.87%
ROCE 16.38%
ROIC 12.4%
ROICexc 12.64%
ROICexgc 18.32%
OM 26.51%
PM (TTM) 16.78%
GM 40.08%
FCFM 2.73%
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%
ROICexcg growth 3Y6.5%
ROICexcg 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-Score5
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 1.42
Debt/FCF 32
Debt/EBITDA 1.75
Cap/Depr 142.16%
Cap/Sales 26.89%
Interest Coverage 6.04
Cash Conversion 65.21%
Profit Quality 16.27%
Current Ratio 0.98
Quick Ratio 0.92
Altman-Z 2.89
F-Score5
WACC9.51%
ROIC/WACC1.3
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)5.93%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%2.93%
EPS Next Y2.85%
EPS Next 2Y6.61%
EPS Next 3Y8.07%
EPS Next 5Y8.07%
Revenue 1Y (TTM)7.07%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%9.84%
Revenue Next Year4.34%
Revenue Next 2Y4.76%
Revenue Next 3Y4.95%
Revenue Next 5Y5.36%
EBIT growth 1Y5.53%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.17%
EBIT Next 3Y24.97%
EBIT Next 5Y17.04%
FCF growth 1Y-33.91%
FCF growth 3Y-5.15%
FCF growth 5Y-9.07%
OCF growth 1Y-3.36%
OCF growth 3Y7.21%
OCF growth 5Y8.49%