10Y annualized return is
excellent
at 20.6% per year
URI has met or exceeded earnings expectations in
the majority of
recent quarters (7/10)
Attractive PE Ratio
Reasonable EV to EBITDA
Strong Return on Equity
Effective Gross Profit Margin
Good Interest Coverage
💪 Strong Financial Performance
📈 Robust Free Cash Flow
🔧 Diverse Service Offering
🌍 Strong Market Demand
🚀 Strategic Acquisition Plans
🛠️ Focus on Innovation and Technology
High Price to Cash Flow Ratio
High Price to Book Ratio
Moderate Net Profit Margin
High Debt Levels
Low Liquidity Ratios
United Rentals demonstrates a strong business model with solid financial performance and strategic growth plans. The company's focus on diverse service offerings, strong market demand, and planned acquisitions positions it well for the future, despite current market challenges.
Analysis Date: January 30, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
United Rentals, Inc. is a company that rents out heavy equipment and tools to construction workers, businesses, and government agencies. They offer a wide range of items, like backhoes, forklifts, and lifts, which help with building and industrial projects. In addition to renting equipment, they also sell tools and provide repair services. With many locations across the United States and other countries, they make it easy for customers to access the equipment they need for their jobs.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$1501.65
Current Market Price: $558.70
IV/P Ratio: 2.69x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
63.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for URI
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (14.47)
P/B ratio ≤ 1.5 (4.32)
Current ratio ≥ 2.0 (0.98x)
Long-term debt < Net current assets (-179.96x)
Margin of safety (63.0%)
URI does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
29.77%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
38.69%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
16.78%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The return on equity (ROE) of 30.65% indicates that the company is effective in generating profits from shareholders' equity.
A gross profit margin of 38.69% shows that the company retains a significant portion of revenue after accounting for the cost of goods sold.
A net profit margin of 16.78% indicates that there is room for improvement in overall profitability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.68x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.98x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
An interest coverage ratio of 5.89 indicates that the company can easily cover its interest expenses, suggesting sound financial health.
A debt to equity ratio of 1.68 indicates a reliance on debt financing, which may pose risks in a rising interest rate environment.
Current ratio of 0.98 and quick ratio of 0.92 suggest that the company may have liquidity issues in meeting short-term obligations.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
United Rentals reported record revenue, EBITDA, and EPS for the fourth quarter, showcasing robust financial health. The total revenue grew by 9.8% year-over-year, driven by strong rental demand across construction and industrial markets.
The company generated nearly $2.1 billion in free cash flow, translating to a free cash flow margin of over 13%. This financial flexibility allows for significant shareholder returns and investments.
The growth in specialty rental revenue, which grew more than 30% year-over-year, indicates a competitive advantage in niche markets. This diversification strengthens the company’s market position.
The company expects another year of growth in 2025, driven by large project demand and a strong customer sentiment. This optimism is supported by feedback from field teams and backlogs in various sectors.
The planned acquisition of H&E is seen as a strategic move to enhance capacity and accelerate growth, positioning the company favorably for long-term demand.
United Rentals is investing in technology and specialty services, which are expected to drive future growth. Their commitment to cold-starts in specialty rental signifies a focus on innovation.