UNITED RENTALS INC (URI) Stock Fundamental Analysis
USA - NYSE:URI - US9113631090 - Common Stock
943.42 USD
+1.9 (+0.2%)
943.42 USD
0 (0%)
URI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 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 is quite expensive at the moment. It does show 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.
In the past 5 years URI has always been profitable.
Each year in the past 5 years URI had a positive operating cash flow.
1.2 Ratios
URI has a Return On Assets of 8.69%. This is in the better half of the industry: URI outperforms 75.51% of its industry peers.
The Return On Equity of URI (28.08%) is better than 85.71% of its industry peers.
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 10.06%.
| 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 Profit Margin of 16.11%. This is amongst the best in the industry. URI outperforms 83.67% of its industry peers.
URI's Profit Margin has improved in the last couple of years.
URI has a Operating Margin of 25.51%. This is amongst the best in the industry. URI outperforms 83.67% of its industry peers.
In the last couple of years the Operating Margin of URI has grown nicely.
URI has a Gross Margin of 39.21%. This is in the better half of the industry: URI outperforms 73.47% 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 | 25.51% | ||
| 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
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.
URI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for URI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.48 indicates that URI is not in any danger for bankruptcy at the moment.
URI has a better Altman-Z score (3.48) than 61.22% of its industry peers.
URI has a debt to FCF ratio of 22.09. This is a negative value and a sign of low solvency as URI would need 22.09 years to pay back of all of its debts.
With a Debt to FCF ratio value of 22.09, URI perfoms like the industry average, outperforming 51.02% of the companies in the same industry.
A Debt/Equity ratio of 1.34 is on the high side and indicates that URI has dependencies on debt 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 | 3.48 |
ROIC/WACC1.26
WACC9.6%
2.3 Liquidity
URI has a Current Ratio of 0.86. 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 worse Current ratio (0.86) 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.
URI has a worse Quick ratio (0.80) than 73.47% 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%.
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 6.77%.
The Revenue has been growing by 10.41% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 11.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.15% on average over the next years. This is quite good.
EPS Next Y1.6%
EPS Next 2Y5.29%
EPS Next 3Y7.25%
EPS Next 5Y11.37%
Revenue Next Year5.5%
Revenue Next 2Y5.15%
Revenue Next 3Y5.07%
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
A Price/Earnings ratio of 22.08 indicates a rather expensive valuation of URI.
URI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, URI is valued at the same level.
The Price/Forward Earnings ratio is 19.68, which indicates a rather expensive current valuation of URI.
The rest of the industry has a similar Price/Forward Earnings ratio as URI.
When comparing the Price/Forward Earnings ratio of URI to the average of the S&P500 Index (22.87), we can say URI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.08 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
67.35% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.16 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of URI may justify a higher PE ratio.
PEG (NY)13.77
PEG (5Y)1.29
EPS Next 2Y5.29%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 1.72, URI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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 17.74% of its income as dividend. This is a sustainable payout ratio.
DP17.74%
EPS Next 2Y5.29%
EPS Next 3Y7.25%
943.42
+1.9 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.47%
Inst Owner Change-0.96%
Ins Owners0.44%
Ins Owner Change-0.71%
Market Cap60.70B
Analysts73.08
Price Target902.9 (-4.3%)
Short Float %3.24%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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)4.8%
PT rev (3m)21.17%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.83%
EPS NY rev (1m)0%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.08 | ||
| Fwd PE | 19.68 | ||
| P/S | 3.85 | ||
| P/FCF | 100.16 | ||
| P/OCF | 12.13 | ||
| P/B | 6.72 | ||
| P/tB | 38.94 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)42.72
EY4.53%
EPS(NY)47.94
Fwd EY5.08%
FCF(TTM)9.42
FCFY1%
OCF(TTM)77.79
OCFY8.25%
SpS244.78
BVpS140.43
TBVpS24.23
PEG (NY)13.77
PEG (5Y)1.29
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 | 3.48 |
F-Score7
WACC9.6%
ROIC/WACC1.26
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 Y1.6%
EPS Next 2Y5.29%
EPS Next 3Y7.25%
EPS Next 5Y11.37%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%4.51%
Revenue Next Year5.5%
Revenue Next 2Y5.15%
Revenue Next 3Y5.07%
Revenue Next 5Y8.15%
EBIT growth 1Y-0.27%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year74.79%
EBIT Next 3Y24.55%
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%