NYSE:URI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value with moderate growth potential.


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


Market Performance


7 Day Return

-1.9%

URI

-3.0%

US Trade Distributors

-0.6%

US Market


1 Year Return

-25.2%

URI

-11.7%

US Trade Distributors

0.6%

US Market

URI underperformed the Trade Distributors industry which returned -11.7% over the past year.

URI underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

URIIndustryMarket
7 Day-1.9%-3.0%-0.6%
30 Day15.1%5.7%2.2%
90 Day-2.6%1.8%1.1%
1 Year-25.2%-25.2%-10.1%-11.7%2.9%0.6%
3 Year67.4%67.4%40.4%34.3%44.6%35.2%
5 Year12.4%12.4%23.0%14.2%61.9%44.2%

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

1 month ago | Simply Wall St

United Rentals (NYSE:URI) Takes On Some Risk With Its Use Of Debt

Valuation

Is United Rentals undervalued based on future cash flows and its price relative to the stock market?

38%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

United Rentals's share price is below the future cash flow value, and at a moderate discount (> 20%).

United Rentals's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

United Rentals is good value based on earnings compared to the US Trade Distributors industry average.

United Rentals is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

United Rentals is good value based on expected growth next year.


Price Based on Value of Assets

United Rentals is overvalued based on assets compared to the US Trade Distributors industry average.


Next Steps

Future Growth

How is United Rentals expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

United Rentals's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).

United Rentals's earnings are expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).

United Rentals's revenue growth is positive but not above the United States of America market average.

United Rentals's earnings growth is expected to exceed the United States of America market average.

United Rentals's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

United Rentals is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has United Rentals performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

United Rentals has delivered over 20% year on year earnings growth in the past 5 years.

United Rentals's 1-year earnings growth is negative, it can't be compared to the 5-year average.

United Rentals's 1-year earnings growth is negative, it can't be compared to the US Trade Distributors industry average.


Return on Equity

Whilst United Rentals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

United Rentals used its assets more efficiently than the US Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

United Rentals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is United Rentals's financial position?


Financial Position Analysis

United Rentals's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

United Rentals's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

United Rentals's level of debt (332.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (446% vs 332.9% today).

Debt is well covered by operating cash flow (24.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).


Balance Sheet

Low level of unsold assets.

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 and Payments Analysis

Unable to evaluate United Rentals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate United Rentals's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as United Rentals has not reported any payouts.

Unable to verify if United Rentals's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as United Rentals has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of United Rentals's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Matt Flannery (54yo)

0.3yrs

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

Matt's remuneration is lower than average for companies of similar size in United States of America.

Matt's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.2yrs

Average Tenure

50yo

Average Age

The average tenure for the United Rentals management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

59yo

Average Age

The average tenure for the United Rentals board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by United Rentals individual insiders in the past 3 months.


Recent Insider Transactions

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
BuyUS$58,45226 Oct 18
Jose Alvarez
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares544
Max PriceUS$107.45
BuyUS$25,38126 Oct 18
Shiv Singh
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares230
Max PriceUS$110.35
BuyUS$50,05523 Oct 18
Jenne Britell
EntityIndividual
Shares435
Max PriceUS$115.07

Ownership Breakdown


Management Team

  • Mike Kneeland (65yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: US$13.60m
  • Ken Mettel

    Senior Vice President of Performance Analytics

    • Tenure: 4.8yrs
  • Matt Flannery (54yo)

    President & CEO

    • Tenure: 0.3yrs
    • Compensation: US$4.60m
  • Craig Pintoff (49yo)

    Executive VP and Chief Administrative & Legal Officer

    • Tenure: 2.5yrs
    • Compensation: US$2.99m
  • Dale Asplund (51yo)

    Executive VP & COO

    • Tenure: 0.3yrs
    • Compensation: US$3.29m
  • Ted Grace

    Vice President of Investor Relations

    • Tenure: 3.4yrs
  • Daniel Higgins

    VP & Chief Information Officer

    • Tenure: 0.7yrs
  • Chris Hummel

    Senior VP & Chief Marketing Officer

    • Tenure: 3.5yrs
  • Jessica Graziano (46yo)

    Executive VP & CFO

    • Tenure: 0.9yrs
    • Compensation: US$2.03m
  • Andrew Limoges (37yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 0.9yrs

Board Members

  • Gracia Martore (67yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$257.15k
  • Donald Roof (67yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$284.65k
  • Bobby Griffin (70yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: US$279.65k
  • Filippo Passerini (62yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$257.65k
  • Mike Kneeland (65yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: US$13.60m
  • Jason Papastavrou (56yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$260.15k
  • Matt Flannery (54yo)

    President & CEO

    • Tenure: 0.3yrs
    • Compensation: US$4.60m
  • Jos Alvarez (56yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$264.65k
  • Shiv Singh (41yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$255.15k
  • Marc Bruno (47yo)

    Independent Director

    • Tenure: 1.3yrs
    • 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$9.756b
  • Shares outstanding: 77.16m
  • 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 Analysis2019/09/21 23:50
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.