United Rentals (URI) AI Stock Analysis

• Market Cap: $46.44B
• Dividend Yield: 0.88%
• Average Volume (3M): 700.86K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.49
• Revenue Growth: 6.73%
• EPS Growth: 1.45%
• Country: US
• Employees: 27,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 11.09
• Shares Outstanding: 62,998,146
• 10 Day Avg. Volume: 739,593
• 30 Day Avg. Volume: 700,858
• PEG Ratio: -73.75
• Price to Book (P/B): 5.81
• Price to Sales (P/S): 3.24
• P/FCF Ratio: 78.73
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 3.93
• Enterprise Value/Gross Profit: 11.09
• Enterprise Value/Ebitda: 9.77
• 1Y Price Target: $946.30
• Price Target Upside: 28.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 46.6
• Revenue Forecast (FY): $17.12B

• Rating: 71 Outperform
• Price Target: $815.00 ▲(10.55% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by strong fundamentals (scale-driven earnings and cash generation) and a positive earnings outlook with substantial shareholder returns. It’s tempered by balance-sheet leverage and margin/cash-flow variability, while technical signals are mixed and valuation support is limited given the P/E and low dividend yield.

Positive Factors

Scale & Revenue Growth

Sustained doubling of revenue over five years indicates durable scale in core rental markets. Large fleet, national branch network and diversified end markets support pricing power, higher utilization and fixed-cost absorption, underpinning long-term margin and reinvestment ability.

Strong cash generation

Consistently strong operating cash flow and a meaningful 2025 free cash flow rebound provide durable capacity to fund maintenance capex, growth investments and sizable shareholder returns. Reliable cash generation supports balance sheet repair and disciplined capital allocation over cycles.

Specialty segment expansion

High-growth specialty offerings and targeted geographic 'cold-starts' diversify revenue toward higher-value, less commoditized services. This structural shift improves margin mix, deepens customer relationships, and creates differentiated, sticky revenue streams over the medium term.

Negative Factors

Elevated leverage

Meaningful leverage reduces financial flexibility and raises refinancing and interest-rate sensitivity during downturns. Even with strong profitability, elevated debt constrains the pace of buybacks or growth capex if cash flow weakens, increasing cyclicality risk to returns.

Margin pressure from costs

Persistent delivery, repositioning and inflationary cost pressures materially compress margins. Given the business's geographic dispersion and project-driven demand, these structural cost items can meaningfully erode operating leverage and free-cash-flow conversion absent sustained efficiency gains.

Used-equipment sales volatility

Dependence on used-equipment dispositions for cash and margin recovery creates recurring lumpiness. Variability in timing, volumes and recovery rates complicates FCF predictability and capital allocation, increasing execution risk for buybacks and dividend targets across quarters.

United Rentals Business Overview & Revenue Model

Company Description

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. The company sells used equipment through its sales force, brokers, website, directly to manufacturers, and at auctions. The company operates a network of 1,360 rental locations in the United States, Canada, Europe, Australia, and New Zealand. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.

How the Company Makes Money

United Rentals primarily makes money by renting equipment to customers for defined time periods (daily/weekly/monthly and longer-term rentals). Rental revenue is the core stream and is driven by (1) fleet size and utilization (how often equipment is on rent), (2) rental rates, and (3) mix of general rentals versus higher-value specialty rentals. The company also earns revenue from ancillary items and services that accompany rentals, including delivery and pickup, fuel charges, damage waivers or similar rental protection offerings, and other jobsite services tied to the rental transaction. A further revenue stream comes from selling used equipment from its fleet (typically after a period of rental use) through retail sales channels and auctions; these sales help recover capital invested in fleet and can be influenced by used equipment market conditions. Revenue is supported by a network of branches and specialty locations that enable local availability, logistics, and service, and by large account relationships with national contractors and industrial customers that can generate repeat volume and multi-site contracts.

United Rentals Financial Statement Overview

Summary

Strong multi-year revenue and profit growth with consistently solid operating cash flow. Offsets include meaningful leverage and historically uneven free-cash-flow conversion, despite a notable 2025 rebound.

Income Statement

Revenue has grown strongly over the last several years (from ~$8.5B in 2020 to ~$16.1B in 2025), supporting consistently high operating profitability. Margins were solid in 2022–2024 (gross margin ~37–43% and net margin ~17–18% in 2022–2024), with net income remaining strong (~$2.4–$2.6B in 2023–2025). The key weakness is some recent margin compression versus 2022–2023 (gross profit dollars rose, but 2024 gross margin stepped down vs. 2022–2023), suggesting incremental growth may be coming at slightly lower profitability.

Balance Sheet

The company operates with meaningful leverage: total debt is high and has increased in dollars (about $10.4B in 2020 to ~$15.4B in 2025), and debt relative to equity has generally been elevated (about 1.6–2.3x in 2020–2024). Offsetting that, equity has also grown (about $4.5B in 2020 to ~$9.0B in 2025) and profitability on equity has been very strong in the years provided (~30% in 2022–2024), which helps support the capital structure. Overall, the balance sheet is workable but more levered than ideal, leaving less flexibility if the cycle turns.

Cash Flow

Operating cash flow is consistently strong and has trended up overall (about $2.7B in 2020 to ~$5.2B in 2025), indicating healthy cash generation from the core business. However, free cash flow has been volatile: it was solid in 2020–2023 (~$0.6B–$1.5B) but dropped sharply in 2024 (~$0.4B), implying higher reinvestment needs and/or working-capital swings. 2025 shows a major rebound in free cash flow (~$5.2B), which is a meaningful positive, but the year-to-year variability is a key risk factor for cash return and debt reduction consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.10B	15.35B	14.33B	11.64B	9.72B
Gross Profit	5.71B	5.71B	5.38B	4.63B	3.50B
EBITDA	7.16B	6.98B	6.63B	5.46B	4.24B
Net Income	2.49B	2.58B	2.42B	2.10B	1.39B
Balance Sheet
Total Assets	29.87B	28.16B	25.59B	24.18B	20.29B
Cash, Cash Equivalents and Short-Term Investments	459.00M	457.00M	363.00M	106.00M	144.00M
Total Debt	16.48B	14.79B	12.66B	12.22B	10.51B
Total Liabilities	20.90B	19.54B	17.46B	17.12B	14.30B
Stockholders Equity	8.97B	8.62B	8.13B	7.06B	5.99B
Cash Flow
Free Cash Flow	662.00M	419.00M	634.00M	743.00M	491.00M
Operating Cash Flow	5.19B	4.55B	4.70B	4.43B	3.69B
Investing Cash Flow	-3.37B	-4.15B	-2.98B	-5.02B	-3.61B
Financing Cash Flow	-1.84B	-274.00M	-1.47B	552.00M	-140.00M

United Rentals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 737.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For URI, the sentiment is Negative. The current price of 737.22 is below the 20-day moving average (MA) of 837.49, below the 50-day MA of 863.98, and below the 200-day MA of 854.04, indicating a bearish trend. The MACD of -28.75 indicates Positive momentum. The RSI at 31.46 is Neutral, neither overbought nor oversold. The STOCH value of 7.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for URI.

United Rentals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URI	71 Outperform	$46.44B	20.90	27.87%	0.88%	6.73%	1.45%
MGRC	70 Outperform	$2.55B	12.96	13.21%	1.79%	4.77%	-35.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GATX	61 Neutral	$5.98B	18.22	12.47%	1.41%	10.66%	13.61%
R	61 Neutral	$7.41B	16.03	16.36%	1.75%	1.68%	9.91%
HRI	58 Neutral	$3.63B	4,644.29	0.06%	1.79%	19.40%	-120.47%
WSC	51 Neutral	$3.25B	-64.81	-5.35%	1.44%	-3.64%	867.62%

United Rentals Corporate Events

United Rentals Leadership to Present at Citi 2026 Conference

United Rentals, Inc. announced on February 10, 2026, that its executive leadership will take part in Citi’s 2026 Global Industrial Tech and Mobility Conference on Tuesday, February 17, 2026. Chief executive officer Matt Flannery and chief financial officer Ted Grace are scheduled to present at 11:20 a.m. ET, providing investors and other stakeholders with an additional forum to hear management discuss the company’s business and strategic direction.

The planned appearance at a high-profile industrial and mobility conference underscores United Rentals’ efforts to maintain visibility with the capital markets and highlight its role in the global equipment rental sector. By positioning its top executives on this platform, the company is signaling an ongoing focus on investor outreach and communication at a time when institutional attention to industrial technology and mobility trends remains strong.

The most recent analyst rating on (URI) stock is a Buy with a $872.00 price target. To see the full list of analyst forecasts on United Rentals stock, see the URI Stock Forecast page.

United Rentals Adds Alexander Taussig to Board

On February 4, 2026, United Rentals appointed Alexander Taussig to its board of directors, expanding the board to 11 members, nine of whom are independent. Taussig, a Board Partner at Lightspeed Venture Partners with a background in scaling technology-enabled and artificial intelligence-driven platforms, is expected to support United Rentals’ push for innovation and digital transformation aimed at enhancing customer experience and sustaining long-term growth and value creation.

The most recent analyst rating on (URI) stock is a Buy with a $965.00 price target. To see the full list of analyst forecasts on United Rentals stock, see the URI Stock Forecast page.

United Rentals Posts Record 2025 Results, Sets 2026 Outlook

On January 28, 2026, United Rentals reported record fourth-quarter and full-year 2025 results, with quarterly total revenue of $4.21 billion and rental revenue of $3.58 billion, and full-year operating cash flow of $5.19 billion and free cash flow of $2.18 billion, despite margin pressure from inflation, higher delivery and depreciation costs, and weaker used equipment sales. Fleet productivity improved 0.5% in the quarter and 2.2% for the year, the specialty segment delivered 9.2% rental revenue growth albeit with a notable gross margin decline, and the company returned $2.36 billion to shareholders in 2025 through buybacks and dividends. United Rentals introduced its 2026 outlook calling for further growth, with total revenue guided to $16.8–$17.3 billion, adjusted EBITDA of $7.58–$7.83 billion, and free cash flow of $2.15–$2.45 billion, while committing to return about $2 billion to shareholders in 2026 via a planned $1.5 billion of share repurchases and a 10% dividend increase, underpinned by a newly announced $5 billion share repurchase authorization with no set expiration date, reinforcing its capital-return strategy and confidence in ongoing cash generation.

The most recent analyst rating on (URI) stock is a Hold with a $979.00 price target. To see the full list of analyst forecasts on United Rentals stock, see the URI Stock Forecast page.