UNITED RENTALS INC (URI)
US9113631090 - Common Stock
URI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. While URI has a great profitability rating, there are quite some concerns on its financial health. URI has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years URI has been profitable.
In the past 5 years URI always reported a positive cash flow from operatings.
1.2 Ratios
URI has a better Return On Assets (9.47%) than 78.43% of its industry peers.
The Return On Equity of URI (29.82%) is better than 80.39% of its industry peers.
URI has a better Return On Invested Capital (13.22%) than 76.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for URI is in line with the industry average of 11.65%.
The 3 year average ROIC (11.35%) for URI is below the current ROIC(13.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.47% | ||
| ROE | 29.82% | ||
| ROIC | 13.22% |
ROA(3y)8.34%
ROA(5y)7.24%
ROE(3y)27.59%
ROE(5y)26.6%
ROIC(3y)11.35%
ROIC(5y)10.45%
1.3 Margins
With an excellent Profit Margin value of 16.91%, URI belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
In the last couple of years the Profit Margin of URI has grown nicely.
URI's Operating Margin of 26.90% is amongst the best of the industry. URI outperforms 80.39% of its industry peers.
In the last couple of years the Operating Margin of URI has remained more or less at the same level.
The Gross Margin of URI (40.56%) is better than 70.59% 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 | 26.9% | ||
| PM (TTM) | 16.91% | ||
| GM | 40.56% |
OM growth 3Y8.01%
OM growth 5Y1.27%
PM growth 3Y17.47%
PM growth 5Y4.43%
GM growth 3Y2.82%
GM growth 5Y-0.6%
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.
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 an improved debt to assets ratio.
2.2 Solvency
URI has an Altman-Z score of 3.19. This indicates that URI is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.19, URI perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
The Debt to FCF ratio of URI is 18.17, which is on the high side as it means it would take URI, 18.17 years of fcf income to pay off all of its debts.
URI has a Debt to FCF ratio (18.17) which is comparable to the rest of the industry.
URI has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.24, URI is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 18.17 | ||
| Altman-Z | 3.19 |
ROIC/WACC1.48
WACC8.95%
2.3 Liquidity
A Current Ratio of 0.81 indicates that URI may have some problems paying its short term obligations.
The Current ratio of URI (0.81) is worse than 92.16% of its industry peers.
A Quick Ratio of 0.75 indicates that URI may have some problems paying its short term obligations.
The Quick ratio of URI (0.75) is worse than 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
URI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.21%, which is quite impressive.
URI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.14% yearly.
URI shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.11%.
Measured over the past years, URI shows a quite strong growth in Revenue. The Revenue has been growing by 12.24% on average per year.
EPS 1Y (TTM)25.21%
EPS 3Y32.7%
EPS 5Y20.14%
EPS growth Q2Q15.61%
Revenue 1Y (TTM)23.11%
Revenue growth 3Y18.88%
Revenue growth 5Y12.24%
Revenue growth Q2Q13.11%
3.2 Future
URI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.07% yearly.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y7.05%
EPS Next 2Y7.97%
EPS Next 3Y9.81%
EPS Next 5Y6.07%
Revenue Next Year5.38%
Revenue Next 2Y4.75%
Revenue Next 3Y4.87%
Revenue Next 5Y3.25%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 correctly with a Price/Earnings ratio of 16.05.
URI's Price/Earnings ratio is in line with the industry average.
URI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.25.
The Price/Forward Earnings ratio is 14.99, 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 21.67, URI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, URI is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of URI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.41 | ||
| EV/EBITDA | 8.37 |
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)2.28
PEG (5Y)0.8
EPS Next 2Y7.97%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
URI has a yearly dividend return of 0.92%, which is pretty low.
Compared to an average industry Dividend Yield of 1.74, URI has a dividend in line with its industry peers.
With a Dividend Yield of 0.92, URI pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
URI is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
URI pays out 16.75% of its income as dividend. This is a sustainable payout ratio.
DP16.75%
EPS Next 2Y7.97%
EPS Next 3Y9.81%
UNITED RENTALS INC
NYSE:URI (4/24/2024, 9:32:12 PM)
After market: 679.92 +24.73 (+3.77%)655.19
-6.13 (-0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap44.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 14.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.28
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.47% | ||
| ROE | 29.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.9% | ||
| PM (TTM) | 16.91% | ||
| GM | 40.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)25.21%
EPS 3Y32.7%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.11%
Revenue growth 3Y18.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y