NYSE:URI

Stock Analysis Report

Executive Summary

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company.

Snowflake

Fundamentals

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has United Rentals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: URI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.6%

URI

1.5%

US Trade Distributors

0.3%

US Market


1 Year Return

29.1%

URI

17.9%

US Trade Distributors

12.5%

US Market

Return vs Industry: URI exceeded the US Trade Distributors industry which returned 17.9% over the past year.

Return vs Market: URI exceeded the US Market which returned 12.5% over the past year.


Shareholder returns

URIIndustryMarket
7 Day6.6%1.5%0.3%
30 Day32.1%10.9%4.1%
90 Day39.0%20.4%5.6%
1 Year29.1%29.1%20.1%17.9%15.0%12.5%
3 Year65.1%65.1%40.4%34.4%49.1%39.4%
5 Year38.4%38.4%36.9%27.4%62.8%44.7%

Price Volatility Vs. Market

How volatile is United Rentals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is United Rentals undervalued compared to its fair value and its price relative to the market?

47.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: URI ($156.36) is trading below our estimate of fair value ($300.19)

Significantly Below Fair Value: URI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: URI is good value based on its PE Ratio (10.7x) compared to the Trade Distributors industry average (17.7x).

PE vs Market: URI is good value based on its PE Ratio (10.7x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: URI is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: URI is overvalued based on its PB Ratio (3.2x) compared to the US Trade Distributors industry average (1.9x).


Next Steps

Future Growth

How is United Rentals forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: URI's forecast earnings growth (12.2% per year) is above the savings rate (2.7%).

Earnings vs Market: URI's earnings (12.2% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: URI's earnings are forecast to grow, but not significantly.

Revenue vs Market: URI's revenue (3.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: URI's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: URI's Return on Equity is forecast to be high in 3 years time (25.7%)


Next Steps

Past Performance

How has United Rentals performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: URI has a high level of non-cash earnings.

Growing Profit Margin: URI's current net profit margins (12.5%) are lower than last year (22%).


Past Earnings Growth Analysis

Earnings Trend: URI's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: URI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: URI had negative earnings growth (-31.9%) over the past year, making it difficult to compare to the Trade Distributors industry average (-5.1%).


Return on Equity

High ROE: Whilst URI's Return on Equity (31.4%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is United Rentals's financial position?


Financial Position Analysis

Short Term Liabilities: URI's short term assets ($1.9B) do not cover its short term liabilities ($2.6B)

Long Term Liabilities: URI's short term assets (1.9B) do not cover its long term liabilities (13.1B)


Debt to Equity History and Analysis

Debt Level: URI's debt to equity ratio (316.3%) is considered high

Reducing Debt: URI's debt to equity ratio has reduced from 446.5% to 316.3% over the past 5 years.

Debt Coverage: URI's debt is well covered by operating cash flow (28.7%).

Interest Coverage: URI's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: URI has a low level of unsold assets or inventory.

Debt Coverage by Assets: URI's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is United Rentals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate URI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate URI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if URI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if URI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of URI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of United Rentals's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Matt Flannery (54yo)

0.5yrs

Tenure

US$4,598,553

Compensation

Mr. Matthew J. Flannery, also known as Matt, has been the Chief Executive Officer and President at United Rentals, Inc. since May 8, 2019. Mr. Flannery was President of United Rentals, Inc. since March 8,  ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD4.60M) is below average for companies of similar size in the US market ($USD11.12M).

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.4yrs

Average Tenure

50yo

Average Age

Experienced Management: URI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

2.5yrs

Average Tenure

59yo

Average Age

Experienced Board: URI's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: URI insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$5,236,59808 Nov 19
Michael Kneeland
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares34,999
Max PriceUS$151.08
SellUS$455,54707 Nov 19
Jason Papastavrou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,036
Max PriceUS$150.05
SellUS$362,45824 Oct 19
Jeffrey Fenton
EntityIndividual
Shares2,735
Max PriceUS$132.53
BuyUS$220,74920 Aug 19
Filippo Passerini
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$110.37
BuyUS$29,98325 Jul 19
Jose Alvarez
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares238
Max PriceUS$125.98
BuyUS$591,36223 Jul 19
Donald Roof
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$118.27
SellUS$1,318,66913 Mar 19
Paul McDonnell
EntityIndividual
Shares10,500
Max PriceUS$125.59
SellUS$18,02413 Mar 19
Andrew Limoges
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Principal Accounting Officer
Shares146
Max PriceUS$123.45
SellUS$67,47713 Mar 19
Jessica Graziano
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares547
Max PriceUS$123.36
SellUS$3,981,92720 Feb 19
Michael Kneeland
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares30,000
Max PriceUS$132.73
BuyUS$48,64128 Jan 19
Shiv Singh
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares390
Max PriceUS$124.72
SellUS$1,405,62528 Jan 19
Dale Asplund
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares11,245
Max PriceUS$125.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mike Kneeland (65yo)

    Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: US$13.60m
  • Ken Mettel

    Senior Vice President of Performance Analytics

    • Tenure: 4.9yrs
  • Matt Flannery (54yo)

    President & CEO

    • Tenure: 0.5yrs
    • Compensation: US$4.60m
  • Craig Pintoff (49yo)

    Executive VP and Chief Administrative & Legal Officer

    • Tenure: 2.7yrs
    • Compensation: US$2.99m
  • Dale Asplund (51yo)

    Executive VP & COO

    • Tenure: 0.5yrs
    • Compensation: US$3.29m
  • Ted Grace

    Vice President of Investor Relations

    • Tenure: 3.6yrs
  • Daniel Higgins

    VP & Chief Information Officer

    • Tenure: 0.8yrs
  • Chris Hummel

    Senior VP & Chief Marketing Officer

    • Tenure: 3.7yrs
  • Jessica Graziano (46yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$2.03m
  • Andrew Limoges (37yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 1.1yrs

Board Members

  • Gracia Martore (67yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$257.15k
  • Donald Roof (67yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$284.65k
  • Bobby Griffin (70yo)

    Lead Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$279.65k
  • Filippo Passerini (62yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$257.65k
  • Mike Kneeland (65yo)

    Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: US$13.60m
  • Jason Papastavrou (56yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: US$260.15k
  • Matt Flannery (54yo)

    President & CEO

    • Tenure: 0.5yrs
    • Compensation: US$4.60m
  • Jos Alvarez (56yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$264.65k
  • Shiv Singh (41yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$255.15k
  • Marc Bruno (47yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$216.70k

Company Information

United Rentals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Rentals, Inc.
  • Ticker: URI
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$11.751b
  • Shares outstanding: 75.16m
  • Website: https://www.unitedrentals.com

Number of Employees


Location

  • United Rentals, Inc.
  • 100 First Stamford Place
  • Suite 700
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
URINYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1997
UR3DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1997
0LIYLSE (London Stock Exchange)YesCommon StockGBUSDDec 1997

Biography

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals; and Trench, Power and Fluid Solutions. The General Rentals segment ren ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:45
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.