UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - NYSE:URI - US9113631090 - Common Stock
974.54 USD
+24.51 (+2.58%)
974.54 USD
0 (0%)
Overall URI gets a fundamental rating of 5 out of 10. We evaluated URI against 49 industry peers in the Trading Companies & Distributors industry. URI has an excellent profitability rating, but there are concerns on its financial health. URI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years URI has always been profitable.
URI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.69%, URI is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.08%, URI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
URI has a better Return On Invested Capital (12.12%) than 81.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for URI is above the industry average of 10.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 28.08% | ||
| ROIC | 12.12% |
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 (16.11%) than 83.67% of its industry peers.
URI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.51%, URI belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
URI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.21%, URI is in the better half of the industry, outperforming 73.47% 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 | 25.51% | ||
| PM (TTM) | 16.11% | ||
| GM | 39.21% |
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.
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
URI has an Altman-Z score of 3.49. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
URI's Altman-Z score of 3.49 is fine compared to the rest of the industry. URI outperforms 65.31% of its industry peers.
The Debt to FCF ratio of URI is 22.09, which is on the high side as it means it would take URI, 22.09 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 22.09, URI is in line with its industry, outperforming 53.06% of the companies in the same industry.
URI has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.34, URI is not doing good in the industry: 73.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 22.09 | ||
| Altman-Z | 3.49 |
ROIC/WACC1.31
WACC9.23%
2.3 Liquidity
A Current Ratio of 0.86 indicates that URI may have some problems paying its short term obligations.
The Current ratio of URI (0.86) is worse than 91.84% of its industry peers.
A Quick Ratio of 0.80 indicates that URI may have some problems paying its short term obligations.
The Quick ratio of URI (0.80) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
URI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.28%.
The Earnings Per Share has been growing by 17.13% on average over the past years. This is quite good.
URI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.77%.
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)-0.28%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-2.15%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%4.51%
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 11.37% 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 Y1.45%
EPS Next 2Y5.31%
EPS Next 3Y7.81%
EPS Next 5Y11.37%
Revenue Next Year5.56%
Revenue Next 2Y5.4%
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.
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
URI is valuated rather expensively with a Price/Earnings ratio of 22.81.
URI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of URI to the average of the S&P500 Index (27.35), we can say URI is valued inline with the index average.
URI is valuated rather expensively with a Price/Forward Earnings ratio of 20.32.
URI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.86. URI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 20.32 |
4.2 Price Multiples
URI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. URI is cheaper than 67.35% of the companies in the same industry.
URI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.47 | ||
| EV/EBITDA | 10.52 |
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)15.69
PEG (5Y)1.33
EPS Next 2Y5.31%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.71%, which is pretty low.
URI's Dividend Yield is comparable with the industry average which is at 2.83.
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 | 0.71% |
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
17.74% of the earnings are spent on dividend by URI. This is a low number and sustainable payout ratio.
DP17.74%
EPS Next 2Y5.31%
EPS Next 3Y7.81%
974.54
+24.51 (+2.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.6%
Inst Owner Change0%
Ins Owners0.44%
Ins Owner Change-0.71%
Market Cap62.70B
Analysts74.81
Price Target952.99 (-2.21%)
Short Float %2.96%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP17.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.15%
Min EPS beat(2)-1.69%
Max EPS beat(2)-0.62%
EPS beat(4)0
Avg EPS beat(4)-2.53%
Min EPS beat(4)-6.35%
Max EPS beat(4)-0.62%
EPS beat(8)4
Avg EPS beat(8)0.61%
EPS beat(12)6
Avg EPS beat(12)0.58%
EPS beat(16)9
Avg EPS beat(16)2.85%
Revenue beat(2)2
Avg Revenue beat(2)1.13%
Min Revenue beat(2)0.03%
Max Revenue beat(2)2.23%
Revenue beat(4)3
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)2.99%
Revenue beat(8)6
Avg Revenue beat(8)0.73%
Revenue beat(12)8
Avg Revenue beat(12)0.7%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)6.71%
PT rev (3m)27.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.13%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 20.32 | ||
| P/S | 3.98 | ||
| P/FCF | 103.47 | ||
| P/OCF | 12.53 | ||
| P/B | 6.94 | ||
| P/tB | 40.22 | ||
| EV/EBITDA | 10.52 |
EPS(TTM)42.72
EY4.38%
EPS(NY)47.96
Fwd EY4.92%
FCF(TTM)9.42
FCFY0.97%
OCF(TTM)77.79
OCFY7.98%
SpS244.78
BVpS140.43
TBVpS24.23
PEG (NY)15.69
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 28.08% | ||
| ROCE | 16% | ||
| ROIC | 12.12% | ||
| ROICexc | 12.39% | ||
| ROICexgc | 17.82% | ||
| OM | 25.51% | ||
| PM (TTM) | 16.11% | ||
| GM | 39.21% | ||
| FCFM | 3.85% |
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-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 22.09 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 146.15% | ||
| Cap/Sales | 27.93% | ||
| Interest Coverage | 5.77 | ||
| Cash Conversion | 71.22% | ||
| Profit Quality | 23.89% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 3.49 |
F-Score7
WACC9.23%
ROIC/WACC1.31
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)-0.28%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-2.15%
EPS Next Y1.45%
EPS Next 2Y5.31%
EPS Next 3Y7.81%
EPS Next 5Y11.37%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%4.51%
Revenue Next Year5.56%
Revenue Next 2Y5.4%
Revenue Next 3Y5.62%
Revenue Next 5Y8.15%
EBIT growth 1Y-0.27%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.62%
EBIT Next 3Y24.92%
EBIT Next 5Y19.92%
FCF growth 1Y234.81%
FCF growth 3Y-5.15%
FCF growth 5Y-9.07%
OCF growth 1Y8.31%
OCF growth 3Y7.21%
OCF growth 5Y8.49%