Sunbelt Rentals Holdings Inc SUNB

Morningstar Rating
$78.27 −2.23 (2.77%)
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Company Report

Sunbelt Rentals Accelerating Post US Listing

Sunbelt Rentals has built a solid number-two market position (11% share) in the North American equipment rental market since its founding in 1984. The firm achieved this through acquisitions and greenfield expansion in a fragmented industry growing at a mid-single-digit rate. Strategically, industry leaders realize that economies of scale and scope are the primary way to differentiate their offerings and generate better returns, which is why building a denser network of “stores” is the preferred approach. This is why market leaders, including Sunbelt, have outgrown peers.

Price vs Fair Value

SUNB is trading at a LOCK|#>J!R< premium.
Price
$80.55
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Sunbelt will continue to gain market share owing to its superior network of locations and robust product offering.

Bears

Sunbelt has no pricing power, and returns could deteriorate.

News

Trading Information

Previous Close Price
$78.86
Day Range
$78.2481.79
52-Week Range
$61.1586.62
Bid/Ask
$78.19 / $78.35
Shares Outstanding
409.95M
Market Cap
$33.02B
Volume/Avg
5,451 / 3M

Key Statistics

Price/Earnings (Normalized)
24.39
Price/Sales
3.04
Dividend Yield (Trailing)
0.93%
Dividend Yield (Forward)
3.72%
Total Yield
5.20%

Company Profile

Sunbelt Rentals (formerly UK-based Ashtead Group) is the number two equipment rental company in the US (11% market share), with a smaller presence in Canada and the UK. Sunbelt operates a rental fleet of just over $15 billion across a network of 1,200 stores in the US, nearly CAD 2 billion of fleet and 135 stores in Canada, and GBP 1.1 billion and 190 stores in the UK. The company has experienced rapid growth over the past decade as its customers increasingly turn to rental versus owning equipment outright. The general tool business has been augmented by the Specialty Rental business, which has grown to 30% of the mix. Revenue is now greater than 50% nonconstruction, with the remainder focused more directly on commercial construction.
Sector
Industrials
Industry
Rental & Leasing Services
Stock Style Box
Mid Core
Total Number of Employees
26,016

Competitors

Valuation

Metric
SUNB
HRI
URI
Price/Earnings (Normalized)
24.3954.1025.68
Price/Book Value
4.463.027.73
Price/Sales
3.041.184.31
Price/Cash Flow
8.224.0012.14
Price/Earnings
SUNB
HRI
URI

Financial Strength

Metric
SUNB
HRI
URI
Quick Ratio
0.740.970.62
Current Ratio
0.901.100.76
Interest Coverage
5.651.115.92
Quick Ratio
SUNB
HRI
URI

Profitability

Metric
SUNB
HRI
URI
Return on Assets (Normalized)
6.03%1.43%7.63%
Return on Equity (Normalized)
17.51%10.34%25.39%
Return on Invested Capital (Normalized)
9.00%5.63%11.71%
Return on Assets
SUNB
HRI
URI

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