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United Rentals Inc URI

Morningstar Rating
$658.23 −0.57 (0.09%)
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Company Report

United Rentals Earnings: 2024 Sales Guidance Points to Demand Resilience

The key takeaway from United Rentals' fourth-quarter earnings was management’s confidence that sales growth will continue in 2024 despite coming off high levels in the last few years. Revenue growth in 2024 will have to contend with a tough 2023 comparison, when sales increased 23% year on year. That said, the equipment rental market continues to show signs of growth in the near term as more construction contractors choose to rent equipment instead of owning it. Putting these factors together, we think United Rentals’ top line will grow by 4% in 2024, near the midpoint of management's guidance.

Price vs Fair Value

URI is trading at a 39% premium.
Price
$658.23
Fair Value
$137.00
Uncertainty
High
1-Star Price
$786.14
5-Star Price
$759.00
Economic Moat
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Capital Allocation
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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

Trading Information

Previous Close Price
$658.80
Day Range
$658.00665.44
52-Week Range
$325.15673.68
Bid/Ask
$655.85 / $658.20
Market Cap
$44.23 Bil
Volume/Avg
373,647 / 608,521

Key Statistics

Price/Earnings (Normalized)
16.02
Price/Sales
3.14
Dividend Yield (Trailing)
0.92%
Dividend Yield (Forward)
0.99%
Total Yield
3.34%

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

Competitors

Valuation

Metric
URI
HRI
AHT
Price/Earnings (Normalized)
16.0214.8118.15
Price/Book Value
5.413.184.21
Price/Sales
3.141.262.69
Price/Cash Flow
9.923.4846.71
Price/Earnings
URI
HRI
AHT

Financial Strength

Metric
URI
HRI
AHT
Quick Ratio
0.711.251.08
Current Ratio
0.811.441.18
Interest Coverage
6.063.005.84
Quick Ratio
URI
HRI
AHT

Profitability

Metric
URI
HRI
AHT
Return on Assets (Normalized)
7.58%5.37%9.25%
Return on Equity (Normalized)
25.43%30.59%29.08%
Return on Invested Capital (Normalized)
11.86%9.93%13.71%
Return on Assets
URI
HRI
AHT
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Rental & Leasing Services Industry Comparables

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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ASHTY
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ASHTF
Ashtead Group PLCSqdcjwr$30.3 Bil
AER
AerCap Holdings NVNbrb$15.7 Bil
UHAL
U-Haul Holding CoMqt$12.5 Bil
UHAL.B
U-Haul Holding Co Ordinary Shares - Series NSmrzm$12.5 Bil
LZRFY
Localiza Rent A Car SA ADRTxb$11.3 Bil
WSC
WillScot Mobile Mini Holdings CorpZfpbmpg$9.2 Bil
ELEEF
Element Fleet Management CorpNxcty$6.7 Bil
HRI
Herc Holdings IncJmh$4.3 Bil

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