UNITED RENTALS INC (URI) Stock Fundamental Analysis
NYSE:URI - US9113631090 - Common Stock
956.34 USD
+1.1 (+0.12%)
956.34 USD
0 (0%)
URI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. URI scores excellent on profitability, 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.
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
URI's Return On Assets of 8.69% is fine compared to the rest of the industry. URI outperforms 76.00% of its industry peers.
URI has a Return On Equity of 28.08%. This is amongst the best in the industry. URI outperforms 86.00% of its industry peers.
URI has a Return On Invested Capital of 12.12%. This is amongst the best in the industry. URI outperforms 82.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for URI is above the industry average of 10.00%.
| 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
Looking at the Profit Margin, with a value of 16.11%, URI belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
In the last couple of years the Profit Margin of URI has grown nicely.
URI has a better Operating Margin (25.51%) than 84.00% of its industry peers.
URI's Operating Margin has improved in the last couple of years.
URI has a Gross Margin of 39.21%. This is in the better half of the industry: URI outperforms 74.00% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), URI is creating some value.
Compared to 1 year ago, URI has less shares outstanding
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
URI has an Altman-Z score of 3.51. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
URI has a Altman-Z score (3.51) which is in line with 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.
URI has a Debt to FCF ratio of 22.09. This is comparable to the rest of the industry: URI outperforms 50.00% of its industry peers.
URI has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
URI has a worse Debt to Equity ratio (1.34) than 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 22.09 | ||
| Altman-Z | 3.51 |
ROIC/WACC1.26
WACC9.61%
2.3 Liquidity
A Current Ratio of 0.86 indicates that URI may have some problems paying its short term obligations.
URI has a worse Current ratio (0.86) than 92.00% of its industry peers.
URI has a Quick 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.
Looking at the Quick ratio, with a value of 0.80, URI is doing worse than 74.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for URI have decreased by -0.28% in the last year.
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
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 Y1.6%
EPS Next 2Y5.29%
EPS Next 3Y7.25%
EPS Next 5Y11.37%
Revenue Next Year5.5%
Revenue Next 2Y5.14%
Revenue Next 3Y5.03%
Revenue Next 5Y8.15%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 22.39 indicates a rather expensive valuation of URI.
URI's Price/Earnings ratio is a bit cheaper when compared to the industry. URI is cheaper than 62.00% of the companies in the same industry.
URI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
The Price/Forward Earnings ratio is 19.95, which indicates a rather expensive current valuation of URI.
URI's Price/Forward Earnings ratio is in line with the industry average.
URI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.39 | ||
| Fwd PE | 19.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of URI indicates a somewhat cheap valuation: URI is cheaper than 68.00% of the companies listed 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 | 101.54 | ||
| EV/EBITDA | 10.58 |
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)13.96
PEG (5Y)1.31
EPS Next 2Y5.29%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.73%, which is pretty low.
URI's Dividend Yield is comparable with the industry average which is at 1.69.
Compared to an average S&P500 Dividend Yield of 2.32, URI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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
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%
956.34
+1.1 (+0.12%)
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 Change0.38%
Market Cap61.53B
Analysts72.31
Price Target863.25 (-9.73%)
Short Float %3.2%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)12.54%
PT rev (3m)19.68%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)0.71%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.39 | ||
| Fwd PE | 19.95 | ||
| P/S | 3.91 | ||
| P/FCF | 101.54 | ||
| P/OCF | 12.29 | ||
| P/B | 6.81 | ||
| P/tB | 39.47 | ||
| EV/EBITDA | 10.58 |
EPS(TTM)42.72
EY4.47%
EPS(NY)47.94
Fwd EY5.01%
FCF(TTM)9.42
FCFY0.98%
OCF(TTM)77.79
OCFY8.13%
SpS244.78
BVpS140.43
TBVpS24.23
PEG (NY)13.96
PEG (5Y)1.31
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 | 3.51 |
F-Score7
WACC9.61%
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 2Y5.14%
Revenue Next 3Y5.03%
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%