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 47 industry peers in the Trading Companies & Distributors industry. URI scores excellent on profitability, but there are concerns on its financial health. URI has a decent growth rate and is not valued too expensively.
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.
URI had positive earnings in each of the past 5 years.
URI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.09%, URI is doing good in the industry, outperforming 78.72% of the companies in the same industry.
Looking at the Return On Equity, with a value of 29.02%, URI belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.55%, URI belongs to the top of the industry, outperforming 82.98% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for URI is above the industry average of 9.69%.
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
With an excellent Profit Margin value of 16.37%, URI belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
URI's Profit Margin has improved in the last couple of years.
URI has a Operating Margin of 25.80%. This is amongst the best in the industry. URI outperforms 91.49% of its industry peers.
URI's Operating Margin has improved in the last couple of years.
URI has a better Gross Margin (39.54%) than 72.34% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so URI is still creating some value.
The number of shares outstanding for URI has been reduced compared to 1 year ago.
Compared to 5 years ago, URI has less shares outstanding
Compared to 1 year ago, URI has a worse debt to assets ratio.
2.2 Solvency
URI has an Altman-Z score of 3.12. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
URI has a Altman-Z score of 3.12. This is comparable to the rest of the industry: URI outperforms 53.19% of its industry peers.
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 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 20.22 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.29
WACC9.74%
2.3 Liquidity
A Current Ratio of 0.85 indicates that URI may have some problems paying its short term obligations.
URI has a worse Current ratio (0.85) than 95.74% of its industry peers.
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.
URI has a Quick ratio of 0.79. This is in the lower half of the industry: URI underperforms 76.60% of its industry peers.
| 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.
The Revenue has been growing slightly by 7.20% in the past 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)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 8.18% yearly.
URI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.13% yearly.
EPS Next Y1.52%
EPS Next 2Y5.33%
EPS Next 3Y7.22%
EPS Next 5Y8.18%
Revenue Next Year4.59%
Revenue Next 2Y4.59%
Revenue Next 3Y4.7%
Revenue Next 5Y5.13%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.29 indicates a correct valuation of URI.
Based on the Price/Earnings ratio, URI is valued a bit cheaper than 72.34% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.32, URI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.59, URI is valued correctly.
URI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, URI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, URI is valued cheaply inside the industry as 82.98% of the companies are valued more expensively.
URI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.19 | ||
| EV/EBITDA | 8.23 |
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)10.71
PEG (5Y)0.95
EPS Next 2Y5.33%
EPS Next 3Y7.22%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 1.00%, which is pretty low.
Compared to an average industry Dividend Yield of 2.26, URI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.00, URI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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 17.33% of its income as dividend. This is a sustainable payout ratio.
DP17.33%
EPS Next 2Y5.33%
EPS Next 3Y7.22%
NYSE:URI (6/16/2025, 1:18:01 PM)
699.81
+4.97 (+0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.28%
Inst Owner Change1.23%
Ins Owners0.44%
Ins Owner Change2.27%
Market Cap45.49B
Analysts74.07
Price Target757.15 (8.19%)
Short Float %3.19%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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)-1.04%
Min EPS beat(2)-1.46%
Max EPS beat(2)-0.62%
EPS beat(4)1
Avg EPS beat(4)-1.98%
Min EPS beat(4)-6.35%
Max EPS beat(4)0.5%
EPS beat(8)5
Avg EPS beat(8)1.89%
EPS beat(12)7
Avg EPS beat(12)2.42%
EPS beat(16)9
Avg EPS beat(16)2.61%
Revenue beat(2)2
Avg Revenue beat(2)2.61%
Min Revenue beat(2)2.23%
Max Revenue beat(2)2.99%
Revenue beat(4)2
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)2.99%
Revenue beat(8)6
Avg Revenue beat(8)0.97%
Revenue beat(12)8
Avg Revenue beat(12)0.82%
Revenue beat(16)11
Avg Revenue beat(16)0.75%
PT rev (1m)4.97%
PT rev (3m)-8.41%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.17%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 14.59 | ||
| P/S | 2.92 | ||
| P/FCF | 71.19 | ||
| P/OCF | 9.2 | ||
| P/B | 5.18 | ||
| P/tB | 35.34 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)42.95
EY6.14%
EPS(NY)47.97
Fwd EY6.85%
FCF(TTM)9.83
FCFY1.4%
OCF(TTM)76.03
OCFY10.86%
SpS239.68
BVpS135.22
TBVpS19.8
PEG (NY)10.71
PEG (5Y)0.95
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 | 3.12 |
F-Score6
WACC9.74%
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)2.21%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-3.17%
EPS Next Y1.52%
EPS Next 2Y5.33%
EPS Next 3Y7.22%
EPS Next 5Y8.18%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%6.71%
Revenue Next Year4.59%
Revenue Next 2Y4.59%
Revenue Next 3Y4.7%
Revenue Next 5Y5.13%
EBIT growth 1Y1.34%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year73.11%
EBIT Next 3Y24.29%
EBIT Next 5Y16.84%
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%