United Rentals
Market Cap
US$11.2b
Last Updated
2019/12/06 23:46 UTC
Data Sources
Company Financials +
Executive Summary
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company.
Rewards
Risk Analysis
Snowflake Analysis
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
0.5%
URI
0.2%
US Trade Distributors
-0.3%
US Market
1 Year Return
51.3%
URI
20.6%
US Trade Distributors
18.6%
US Market
Return vs Industry: URI exceeded the US Trade Distributors industry which returned 20.6% over the past year.
Return vs Market: URI exceeded the US Market which returned 18.6% over the past year.
Shareholder returns
| URI | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 0.2% | -0.3% |
| 30 Day | 6.9% | -0.4% | 2.2% |
| 90 Day | 34.5% | 14.0% | 5.6% |
| 1 Year | 51.3%51.3% | 22.9%20.6% | 21.1%18.6% |
| 3 Year | 45.6%45.6% | 27.8%22.3% | 45.6%36.2% |
| 5 Year | 57.8%57.8% | 44.9%34.4% | 71.1%52.2% |
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
2 weeks ago | Simply Wall St
These 4 Measures Indicate That United Rentals (NYSE:URI) Is Using Debt Extensively1 month ago | Simply Wall St
Boasting A 31% Return On Equity, Is United Rentals, Inc. (NYSE:URI) A Top Quality Stock?1 month ago | Simply Wall St
Does United Rentals, Inc.'s (NYSE:URI) P/E Ratio Signal A Buying Opportunity?Valuation
Is United Rentals undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: URI ($157.26) is trading below our estimate of fair value ($345.18)
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 (10.8x) compared to the Trade Distributors industry average (16.8x).
PE vs Market: URI is good value based on its PE Ratio (10.8x) compared to the US market (18.5x).
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 (3.3x) compared to the US Trade Distributors industry average (1.7x).
Next Steps
Future Growth
How is United Rentals forecast to perform in the next 1 to 3 years based on estimates from 14 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 (1.7%).
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 (7.4% 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%)
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 high quality 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 (-8.5%).
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
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?
1.5yrs
Average management tenure
CEO
Matt Flannery (54yo)
0.6yrs
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 ($USD11.01M).
Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.
Management Age and Tenure
1.5yrs
Average Tenure
50yo
Average Age
Experienced Management: URI's management team is not considered experienced ( 1.5 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 only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman |
| Shares | 34,999 |
| Max Price | US$151.08 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,036 |
| Max Price | US$150.05 |
| Entity | Individual |
| Shares | 2,735 |
| Max Price | US$132.53 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | US$110.37 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 238 |
| Max Price | US$125.98 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$118.27 |
| Entity | Individual |
| Shares | 10,500 |
| Max Price | US$125.59 |
| Entity | Individual |
| Role | Chief Accounting Officer VP, Controller & Principal Accounting Officer |
| Shares | 146 |
| Max Price | US$123.45 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 547 |
| Max Price | US$123.36 |
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman |
| Shares | 30,000 |
| Max Price | US$132.73 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 390 |
| Max Price | US$124.72 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP & COO |
| Shares | 11,245 |
| Max Price | US$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: 0.6yrs
- Compensation: US$13.60m
Ken Mettel
Senior Vice President of Performance Analytics
- Tenure: 5yrs
Matt Flannery (54yo)
President
- Tenure: 0.6yrs
- Compensation: US$4.60m
Craig Pintoff (49yo)
Executive VP and Chief Administrative & Legal Officer
- Tenure: 2.8yrs
- Compensation: US$2.99m
Dale Asplund (51yo)
Executive VP & COO
- Tenure: 0.6yrs
- Compensation: US$3.29m
Ted Grace
Vice President of Investor Relations
- Tenure: 3.7yrs
Daniel Higgins
VP & Chief Information Officer
- Tenure: 0.9yrs
Chris Hummel
Senior VP & Chief Marketing Officer
- Tenure: 3.8yrs
Jessica Graziano (46yo)
Executive VP & CFO
- Tenure: 1.2yrs
- Compensation: US$2.03m
Andrew Limoges (37yo)
VP, Controller & Principal Accounting Officer
- Tenure: 1.2yrs
Board Members
Gracia Martore (67yo)
Independent Director
- Tenure: 2.5yrs
- Compensation: US$257.15k
Donald Roof (67yo)
Independent Director
- Tenure: 7.7yrs
- Compensation: US$284.65k
Bobby Griffin (70yo)
Lead Independent Director
- Tenure: 0.6yrs
- Compensation: US$279.65k
Filippo Passerini (62yo)
Independent Director
- Tenure: 10.9yrs
- Compensation: US$257.65k
Mike Kneeland (65yo)
Non-Executive Chairman
- Tenure: 0.6yrs
- Compensation: US$13.60m
Jason Papastavrou (56yo)
Independent Director
- Tenure: 14.5yrs
- Compensation: US$260.15k
Matt Flannery (54yo)
President
- Tenure: 0.6yrs
- Compensation: US$4.60m
Jos Alvarez (56yo)
Independent Director
- Tenure: 10.9yrs
- Compensation: US$264.65k
Shiv Singh (41yo)
Independent Director
- Tenure: 2.6yrs
- Compensation: US$255.15k
Marc Bruno (48yo)
Independent Director
- Tenure: 1.6yrs
- 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$11.226b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| URI | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 1997 |
| UR3 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1997 |
| 0LIY | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/06 23:46 |
| End of Day Share Price | 2019/12/06 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.