UNITED RENTALS INC (URI) Stock Fundamental Analysis
NYSE:URI - New York Stock Exchange, Inc. - US9113631090 - Common Stock - Currency: USD
Taking everything into account, URI scores 5 out of 10 in our fundamental rating. URI was compared to 49 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.
1. Profitability
1.1 Basic Checks
In the past year URI was profitable.
URI had a positive operating cash flow in the past year.
URI had positive earnings in each of the past 5 years.
In the past 5 years URI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.09%, URI is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
URI has a better Return On Equity (29.02%) than 89.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.55%, URI belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for URI is above the industry average of 8.96%.
The 3 year average ROIC (12.29%) for URI is below the current ROIC(12.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.09% | ||
| ROE | 29.02% | ||
| ROIC | 12.55% |
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 has a better Profit Margin (16.37%) than 89.80% of its industry peers.
URI's Profit Margin has improved in the last couple of years.
URI has a better Operating Margin (25.80%) than 91.84% of its industry peers.
URI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.54%, URI is in the better half of the industry, outperforming 69.39% 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 | 25.8% | ||
| PM (TTM) | 16.37% | ||
| GM | 39.54% |
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.
URI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.01 indicates that URI is not in any danger for bankruptcy at the moment.
URI has a Altman-Z score (3.01) which is comparable to the rest of the industry.
URI has a debt to FCF ratio of 20.22. This is a negative value and a sign of low solvency as URI would need 20.22 years to pay back of all of its debts.
URI has a Debt to FCF ratio (20.22) which is comparable to the rest of the industry.
URI has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
URI has a Debt to Equity ratio of 1.31. This is in the lower half of the industry: URI underperforms 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 20.22 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.34
WACC9.35%
2.3 Liquidity
URI has a Current Ratio of 0.85. This is a bad value and indicates that URI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.85, URI is doing worse than 91.84% of the companies in the same industry.
URI has a Quick Ratio of 0.85. 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 Quick ratio value of 0.79, URI is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.21% over the past year.
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 7.20%.
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)2.21%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-3.17%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%6.71%
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 8.07% yearly.
The Revenue is expected to grow by 5.36% on average over the next years.
EPS Next Y2.85%
EPS Next 2Y6.61%
EPS Next 3Y8.07%
EPS Next 5Y8.07%
Revenue Next Year3.92%
Revenue Next 2Y4.46%
Revenue Next 3Y4.86%
Revenue Next 5Y5.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 15.53, which indicates a correct valuation of URI.
73.47% of the companies in the same industry are more expensive than URI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.75, URI is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.57, which indicates a correct valuation of URI.
URI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. URI is cheaper than 69.39% of the companies in the same industry.
URI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
URI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. URI is cheaper than 77.55% of the companies 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 | 67.86 | ||
| EV/EBITDA | 7.73 |
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)5.45
PEG (5Y)0.91
EPS Next 2Y6.61%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, URI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.07, URI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
17.33% of the earnings are spent on dividend by URI. This is a low number and sustainable payout ratio.
DP17.33%
EPS Next 2Y6.61%
EPS Next 3Y8.07%
NYSE:URI (5/2/2025, 3:47:02 PM)
667.11
+26.51 (+4.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners92.93%
Inst Owner Change1.27%
Ins Owners0.49%
Ins Owner Change2.91%
Market Cap43.36B
Analysts72.59
Price Target710.5 (6.5%)
Short Float %2.38%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP17.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.65%
Min EPS beat(2)-1.84%
Max EPS beat(2)-1.46%
EPS beat(4)1
Avg EPS beat(4)-2.29%
Min EPS beat(4)-6.35%
Max EPS beat(4)0.5%
EPS beat(8)5
Avg EPS beat(8)1.74%
EPS beat(12)7
Avg EPS beat(12)2.32%
EPS beat(16)9
Avg EPS beat(16)2.54%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)2.11%
Max Revenue beat(2)2.99%
Revenue beat(4)2
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)2.99%
Revenue beat(8)6
Avg Revenue beat(8)0.95%
Revenue beat(12)8
Avg Revenue beat(12)0.82%
Revenue beat(16)11
Avg Revenue beat(16)0.74%
PT rev (1m)-14.05%
PT rev (3m)-17.1%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-5.87%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 13.57 | ||
| P/S | 2.78 | ||
| P/FCF | 67.86 | ||
| P/OCF | 8.77 | ||
| P/B | 4.93 | ||
| P/tB | 33.69 | ||
| EV/EBITDA | 7.73 |
EPS(TTM)42.95
EY6.44%
EPS(NY)49.14
Fwd EY7.37%
FCF(TTM)9.83
FCFY1.47%
OCF(TTM)76.03
OCFY11.4%
SpS239.68
BVpS135.22
TBVpS19.8
PEG (NY)5.45
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.09% | ||
| ROE | 29.02% | ||
| ROCE | 16.57% | ||
| ROIC | 12.55% | ||
| ROICexc | 12.84% | ||
| ROICexgc | 18.78% | ||
| OM | 25.8% | ||
| PM (TTM) | 16.37% | ||
| GM | 39.54% | ||
| FCFM | 4.1% |
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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 20.22 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 144.98% | ||
| Cap/Sales | 27.62% | ||
| Interest Coverage | 5.73 | ||
| Cash Conversion | 70.72% | ||
| Profit Quality | 25.05% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 3.01 |
F-Score6
WACC9.35%
ROIC/WACC1.34
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)2.21%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-3.17%
EPS Next Y2.85%
EPS Next 2Y6.61%
EPS Next 3Y8.07%
EPS Next 5Y8.07%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%6.71%
Revenue Next Year3.92%
Revenue Next 2Y4.46%
Revenue Next 3Y4.86%
Revenue Next 5Y5.36%
EBIT growth 1Y1.34%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.17%
EBIT Next 3Y24.97%
EBIT Next 5Y17.04%
FCF growth 1Y38.01%
FCF growth 3Y-5.15%
FCF growth 5Y-9.07%
OCF growth 1Y10.16%
OCF growth 3Y7.21%
OCF growth 5Y8.49%