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UNITED RENTALS INC (URI) Stock Fundamental Analysis

NYSE:URI - New York Stock Exchange, Inc. - US9113631090 - Common Stock - Currency: USD

858.42  -2.84 (-0.33%)

Fundamental Rating

5

Overall URI gets a fundamental rating of 5 out of 10. We evaluated URI against 48 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 not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

URI had positive earnings in the past year.
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.
URI Yearly Net Income VS EBIT VS OCF VS FCFURI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

1.2 Ratios

The Return On Assets of URI (8.69%) is better than 70.83% of its industry peers.
With an excellent Return On Equity value of 28.08%, URI belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
The Return On Invested Capital of URI (12.12%) is better than 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for URI is above the industry average of 9.84%.
Industry RankSector 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%
URI Yearly ROA, ROE, ROICURI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

The Profit Margin of URI (16.11%) is better than 83.33% 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 83.33% of the companies in the same industry.
URI's Operating Margin has improved in the last couple of years.
URI has a better Gross Margin (39.21%) than 70.83% 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 RankSector 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%
URI Yearly Profit, Operating, Gross MarginsURI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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3

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
Compared to 5 years ago, URI has less shares outstanding
Compared to 1 year ago, URI has a worse debt to assets ratio.
URI Yearly Shares OutstandingURI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
URI Yearly Total Debt VS Total AssetsURI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

URI has an Altman-Z score of 3.32. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of URI (3.32) is comparable to the rest of the industry.
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 45.83% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that URI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.34, URI is doing worse than 72.92% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 22.09
Altman-Z 3.32
ROIC/WACC1.29
WACC9.43%
URI Yearly LT Debt VS Equity VS FCFURI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 0.86 indicates that URI may have some problems paying its short term obligations.
URI has a Current ratio of 0.86. This is amonst the worse of the industry: URI underperforms 95.83% 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.
With a Quick ratio value of 0.80, URI is not doing good in the industry: 77.08% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.8
URI Yearly Current Assets VS Current LiabilitesURI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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4

3. Growth

3.1 Past

The earnings per share for URI have decreased by -0.28% in the last 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 6.77% in the past year.
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 8.18% on average per year.
The Revenue is expected to grow by 5.13% on average over the next years.
EPS Next Y0.88%
EPS Next 2Y4.82%
EPS Next 3Y6.62%
EPS Next 5Y8.18%
Revenue Next Year5.39%
Revenue Next 2Y5.16%
Revenue Next 3Y5.34%
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.
URI Yearly Revenue VS EstimatesURI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B
URI Yearly EPS VS EstimatesURI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20 40 60

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 20.09 indicates a rather expensive valuation of URI.
Based on the Price/Earnings ratio, URI is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.99, URI is valued a bit cheaper.
URI is valuated rather expensively with a Price/Forward Earnings ratio of 18.07.
URI's Price/Forward Earnings is on the same level as the industry average.
URI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.36.
Industry RankSector Rank
PE 20.09
Fwd PE 18.07
URI Price Earnings VS Forward Price EarningsURI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 70.83% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as URI.
Industry RankSector Rank
P/FCF 91.14
EV/EBITDA 9.71
URI Per share dataURI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

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.
The excellent profitability rating of URI may justify a higher PE ratio.
PEG (NY)22.74
PEG (5Y)1.17
EPS Next 2Y4.82%
EPS Next 3Y6.62%

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2

5. Dividend

5.1 Amount

With a yearly dividend of 0.81%, URI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.05, URI has a dividend in line with its industry peers.
With a Dividend Yield of 0.81, URI pays less dividend than the S&P500 average, which is at 2.40.
Industry RankSector Rank
Dividend Yield 0.81%

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
URI Yearly Dividends per shareURI Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 2 4 6

5.3 Sustainability

URI pays out 17.74% of its income as dividend. This is a sustainable payout ratio.
DP17.74%
EPS Next 2Y4.82%
EPS Next 3Y6.62%
URI Yearly Income VS Free CF VS DividendURI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
URI Dividend Payout.URI Dividend Payout, showing the Payout Ratio.URI Dividend Payout.PayoutRetained Earnings

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UNITED RENTALS INC

NYSE:URI (8/7/2025, 2:53:45 PM)

858.42

-2.84 (-0.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)07-23 2025-07-23/amc
Earnings (Next)10-21 2025-10-21/amc
Inst Owners93.28%
Inst Owner Change-1.24%
Ins Owners0.44%
Ins Owner Change0.23%
Market Cap55.23B
Analysts73.33
Price Target767.05 (-10.64%)
Short Float %3.5%
Short Ratio4.13
Dividend
Industry RankSector Rank
Dividend Yield 0.81%
Yearly Dividend6.55
Dividend Growth(5Y)N/A
DP17.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date08-13 2025-08-13 (1.79)
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)2.94%
PT rev (3m)7.96%
EPS NQ rev (1m)1.17%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-1.91%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)1.42%
Valuation
Industry RankSector Rank
PE 20.09
Fwd PE 18.07
P/S 3.51
P/FCF 91.14
P/OCF 11.04
P/B 6.11
P/tB 35.43
EV/EBITDA 9.71
EPS(TTM)42.72
EY4.98%
EPS(NY)47.51
Fwd EY5.53%
FCF(TTM)9.42
FCFY1.1%
OCF(TTM)77.79
OCFY9.06%
SpS244.78
BVpS140.43
TBVpS24.23
PEG (NY)22.74
PEG (5Y)1.17
Profitability
Industry RankSector 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 RankSector 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 3.32
F-Score7
WACC9.43%
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)-0.28%
EPS 3Y25.11%
EPS 5Y17.13%
EPS Q2Q%-2.15%
EPS Next Y0.88%
EPS Next 2Y4.82%
EPS Next 3Y6.62%
EPS Next 5Y8.18%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y16.46%
Revenue growth 5Y10.41%
Sales Q2Q%4.51%
Revenue Next Year5.39%
Revenue Next 2Y5.16%
Revenue Next 3Y5.34%
Revenue Next 5Y5.13%
EBIT growth 1Y-0.27%
EBIT growth 3Y21.24%
EBIT growth 5Y13.53%
EBIT Next Year73.11%
EBIT Next 3Y24.29%
EBIT Next 5Y16.84%
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%