UNITED RENTALS INC (URI) Stock Fundamental Analysis
NYSE:URI - New York Stock Exchange, Inc. - US9113631090 - Common Stock - Currency: USD
URI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 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.
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 better Return On Assets (9.09%) than 79.17% of its industry peers.
The Return On Equity of URI (29.02%) is better than 85.42% 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 83.33% 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 9.62%.
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
The Profit Margin of URI (16.37%) is better than 89.58% of its industry peers.
In the last couple of years the Profit Margin of URI has grown nicely.
The Operating Margin of URI (25.80%) is better than 91.67% of its industry peers.
In the last couple of years the Operating Margin of URI has grown nicely.
URI has a better Gross Margin (39.54%) than 72.92% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), URI is 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
An Altman-Z score of 3.33 indicates that URI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.33, URI is in line with its industry, outperforming 54.17% of the companies in the same 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 in line with its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that URI has dependencies on debt financing.
The Debt to Equity ratio of URI (1.31) is worse than 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 20.22 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.26
WACC9.97%
2.3 Liquidity
A Current Ratio of 0.85 indicates that URI may have some problems paying its short term obligations.
URI's Current ratio of 0.85 is on the low side compared to the rest of the industry. URI is outperformed by 95.83% of its industry peers.
A Quick Ratio of 0.79 indicates that URI may have some problems paying its short term obligations.
URI's Quick ratio of 0.79 is on the low side compared to the rest of the industry. URI is outperformed by 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
URI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.21%.
The Earnings Per Share has been growing by 17.13% on average over the past years. This is quite good.
Looking at the last year, URI shows a small growth in Revenue. The Revenue has grown by 7.20% in the last year.
The Revenue has been growing by 10.41% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 8.18% on average over the next years. This is quite good.
URI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.13% yearly.
EPS Next Y0.88%
EPS Next 2Y4.82%
EPS Next 3Y6.62%
EPS Next 5Y8.18%
Revenue Next Year4.48%
Revenue Next 2Y4.5%
Revenue Next 3Y4.58%
Revenue Next 5Y5.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 18.45, which indicates a rather expensive current valuation of URI.
Based on the Price/Earnings ratio, URI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
URI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.68, which indicates a correct valuation of URI.
The rest of the industry has a similar Price/Forward Earnings ratio as URI.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, URI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.45 | ||
| Fwd PE | 16.68 |
4.2 Price Multiples
URI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. URI is cheaper than 75.00% of the companies in the same industry.
URI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.6 | ||
| EV/EBITDA | 9.2 |
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.
URI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)20.88
PEG (5Y)1.08
EPS Next 2Y4.82%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, URI is not a good candidate for dividend investing.
URI's Dividend Yield is comparable with the industry average which is at 2.01.
With a Dividend Yield of 0.87, URI pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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
17.33% of the earnings are spent on dividend by URI. This is a low number and sustainable payout ratio.
DP17.33%
EPS Next 2Y4.82%
EPS Next 3Y6.62%
NYSE:URI (7/16/2025, 12:42:55 PM)
792.35
-5.82 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.28%
Inst Owner Change0%
Ins Owners0.44%
Ins Owner Change2.27%
Market Cap51.50B
Analysts73.33
Price Target745.15 (-5.96%)
Short Float %2.99%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)-1.58%
PT rev (3m)-3.68%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-3.47%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-3.02%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.45 | ||
| Fwd PE | 16.68 | ||
| P/S | 3.31 | ||
| P/FCF | 80.6 | ||
| P/OCF | 10.42 | ||
| P/B | 5.86 | ||
| P/tB | 40.02 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)42.95
EY5.42%
EPS(NY)47.51
Fwd EY6%
FCF(TTM)9.83
FCFY1.24%
OCF(TTM)76.03
OCFY9.6%
SpS239.68
BVpS135.22
TBVpS19.8
PEG (NY)20.88
PEG (5Y)1.08
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 | 3.33 |
F-Score6
WACC9.97%
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)2.21%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-3.17%
EPS Next Y0.88%
EPS Next 2Y4.82%
EPS Next 3Y6.62%
EPS Next 5Y8.18%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%6.71%
Revenue Next Year4.48%
Revenue Next 2Y4.5%
Revenue Next 3Y4.58%
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%