United Rentals, Inc.
United Rentals, Inc. Fundamental Analysis
United Rentals, Inc. (URI) shows moderate financial fundamentals with a PE ratio of 23.05, profit margin of 15.49%, and ROE of 27.87%. The company generates $16.2B in annual revenue with moderate year-over-year growth of 7.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze URI's fundamental strength across five key dimensions:
Efficiency Score
WeakURI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentURI trades at attractive valuation levels.
Growth Score
ModerateURI shows steady but slowing expansion.
Financial Health Score
WeakURI carries high financial risk with limited liquidity.
Profitability Score
ExcellentURI achieves industry-leading margins.
Key Financial Metrics
Is URI Expensive or Cheap?
P/E Ratio
URI trades at 23.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, URI's PEG of -39.03 indicates potential undervaluation.
Price to Book
The market values United Rentals, Inc. at 6.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.43 times EBITDA. This is generally considered low.
How Well Does URI Make Money?
Net Profit Margin
For every $100 in sales, United Rentals, Inc. keeps $15.49 as profit after all expenses.
Operating Margin
Core operations generate 24.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.87 in profit for every $100 of shareholder equity.
ROA
United Rentals, Inc. generates $8.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
United Rentals, Inc. generates strong operating cash flow of $5.21B, reflecting robust business health.
Free Cash Flow
United Rentals, Inc. generates strong free cash flow of $4.53B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $71.15 in free cash annually.
FCF Yield
URI converts 7.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-39.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How URI Stacks Against Its Sector Peers
| Metric | URI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.05 | 26.76 | Better (Cheaper) |
| ROE | 27.87% | 1300.00% | Weak |
| Net Margin | 15.49% | -29570.00% (disorted) | Strong |
| Debt/Equity | 1.84 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.94 | 10.68 | Weak Liquidity |
| ROA | 8.35% | -1545134.00% (disorted) | Weak |
URI outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews United Rentals, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
91.30%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
155.69%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
75.25%
Industry Style: Cyclical, Value, Infrastructure
High Growth