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United Rentals Inc URI

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Stock XNYS Rating as of
$655.19 −6.13 (0.93%)
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As of Delayed Price Pre-Open: $671.00 +15.50
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Company Report

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Greater Equipment Rental Penetration Is a Secular Growth Driver for United Rentals

Dawit Woldemariam

We think United Rentals will continue to be the top player in the equipment rental industry. As the industry leader, the company provides customers better equipment availability and reliability than smaller players. However, many of the equipment brands found in United Rentals’ product catalog can also be found with competitors, such as Sunbelt Rentals (owned by Ashtead), Herc, and thousands of other rental companies across North America.

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Price vs Fair Value

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URI is trading at a 23% premium.
Price
$661.32
Fair Value
$841.00
Uncertainty
High
1-Star Price
$418.70
5-Star Price
$412.10
Economic Moat
Cfnd
Capital Allocation
Xynsnvnbq

Bulls Say, Bears Say

Bulls

Increased equipment rental penetration in North America could result in more general equipment rentals, driving higher revenue growth for United Rentals.

Bears

Rental customers may elect to buy equipment outright instead of renting, which could lead to a decrease in the rental penetration rate, ultimately meaning lower sales for United Rentals.

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News

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Trading Information

Previous Close Price
$661.32
Day Range
$648.76–672.39
52-Week Range
$325.15–732.37
Bid/Ask
$668.00 / $685.98
Market Cap
$44.01 Bil
Volume/Avg
378 / 524,853

Key Statistics

Price/Earnings (Normalized)
16.05
Price/Sales
3.07
Dividend Yield (Trailing)
0.92%
Dividend Yield (Forward)
0.99%
Total Yield
3.61%

Company Profile

United Rentals is the world’s largest equipment rental company. It principally operates in the United States and Canada, where it commands approximately 15% share in a highly fragmented market. It serves three end markets: general industrial, commercial construction, and residential construction. Like its peers, United Rentals historically has provided its customers with equipment that was intermittently used, such as aerial equipment and portable generators. As the company has grown organically and through hundreds of acquisitions since it went public in 1997, its catalog (fleet size of $21 billion) now includes a range of specialty equipment and other items that can be rented for indefinitely long periods.
Sector
Industrials
Industry
Rental & Leasing Services
Stock Style Box
Mid Core
Total Number of Employees
26,300
Website
https://www.unitedrentals.com

Competitors

Valuation

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Metric
URI
HRI
LOW
Price/Earnings (Normalized)
 16.0515.8417.63
Price/Book Value
 5.393.32—
Price/Sales
 3.071.311.56
Price/Cash Flow
 9.773.6312.97
Price/Earnings
URI
HRI
LOW

Financial Strength

Metric
URI
HRI
LOW
Quick Ratio
 0.711.250.06
Current Ratio
 0.811.441.23
Interest Coverage
 6.063.007.79
Quick Ratio
URI
HRI
LOW

Profitability

Metric
URI
HRI
LOW
Return on Assets (Normalized)
 7.81%5.13%18.05%
Return on Equity (Normalized)
 25.96%29.32%—
Return on Invested Capital (Normalized)
 12.11%9.55%35.63%
Return on Assets
URI
HRI
LOW
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Rental & Leasing Services Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ASHTY
Ashtead Group PLC ADR—Csngt$31.2 Bil
ASHTF
Ashtead Group PLC—Xqmkdh$30.8 Bil
AER
AerCap Holdings NV—Mkckwxz$16.9 Bil
UHAL.B
U-Haul Holding Co Ordinary Shares - Series N—Xvzfwvp$12.5 Bil
UHAL
U-Haul Holding Co—Chrzp$12.2 Bil
LZRFY
Localiza Rent A Car SA ADR—Bhg$10.2 Bil
FTAI
FTAI Aviation Ltd—Tvhgzc$7.3 Bil
WSC
WillScot Mobile Mini Holdings Corp—Tpbtbn$7.2 Bil
HRI
Herc Holdings IncPnnrgjnzXfsh$4.4 Bil

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