United Rentals (URI) AI Stock Analysis

• Market Cap: $60.99B
• Dividend Yield: 0.74%
• Average Volume (3M): 482.29K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.64
• Revenue Growth: 6.77%
• EPS Growth: 2.01%
• Country: US
• Employees: 27,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 10.47
• Shares Outstanding: 64,341,225
• 10 Day Avg. Volume: 490,571
• 30 Day Avg. Volume: 482,292
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 3.99
• Enterprise Value/Gross Profit: 10.97
• Enterprise Value/Ebitda: 8.84
• 1Y Price Target: $932.41
• Price Target Upside: -2.74% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 79 Outperform
• Price Target: $1,081.00 ▲(12.76% Upside)

United Rentals' strong financial performance and positive earnings call results are the most significant factors driving the stock score. Technical indicators show bullish momentum, though caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is fairly valued, and recent corporate events further support a positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Specialty Rental Expansion

Expansion in specialty rentals diversifies revenue streams and enhances competitive positioning, contributing to sustainable growth.

Improved Free Cash Flow

Strong cash flow generation enhances liquidity, enabling strategic investments and shareholder returns, bolstering long-term financial health.

Negative Factors

High Debt Levels

High debt levels pose a risk if interest rates rise, potentially impacting financial flexibility and increasing vulnerability to economic shifts.

Margin Pressure

Margin pressure from lower profitability segments can affect overall profitability, challenging long-term earnings growth and operational efficiency.

Inflationary Environment

Persistent inflation can increase operational costs, squeezing margins and necessitating price adjustments, impacting competitive positioning.

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 generates revenue primarily through the rental of equipment and tools, which constitutes the bulk of its earnings. The company has a diverse fleet of rental equipment that it leases to customers for short-term and long-term projects. In addition to rental income, United Rentals also earns money through the sale of new and used equipment, as well as through services such as maintenance, repair, and training. The company has strategic partnerships with leading manufacturers to ensure a reliable and modern fleet of equipment. Furthermore, United Rentals benefits from a growing demand for rental services in sectors like construction and infrastructure development, which contributes to its revenue growth.

United Rentals Financial Statement Overview

Summary

United Rentals exhibits robust financial health with strong income growth, efficient asset utilization, and solid cash flows. The company's revenue and profitability metrics are impressive, supported by a stable balance sheet. While debt levels are high, they are manageable given the company's cash flow generation. Overall, United Rentals maintains a strong financial position with growth potential.

Income Statement

United Rentals shows strong performance in revenue and profit growth. The gross profit margin is robust at 39.2% and the net profit margin is healthy at 16.1% for TTM. The EBIT and EBITDA margins stand at 25.5% and 36.9%, respectively, indicating operational efficiency. Revenue growth is impressive, with a 10.6% increase from 2023 to 2024. The company maintains good profitability and growth trends.

Balance Sheet

The balance sheet reflects a stable financial position, with a debt-to-equity ratio of 1.60, showing moderate leverage. The return on equity is strong at 28.1%, highlighting efficient use of equity. The equity ratio is 30.9%, indicating a good balance of equity funding. However, the high debt level poses a potential risk if interest rates rise.

Cash Flow

The cash flow statement shows strong operational cash flow with a growth of 10.1% from the previous period. The free cash flow to net income ratio is favorable at 1.15, indicating solid cash generation relative to net income. The company effectively converts its income into cash, supporting its liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.75B	15.35B	14.33B	11.64B	9.72B	8.53B
Gross Profit	5.73B	5.71B	5.38B	4.63B	3.50B	2.83B
EBITDA	7.11B	6.98B	6.63B	5.46B	4.24B	3.76B
Net Income	2.54B	2.58B	2.42B	2.10B	1.39B	890.00M
Balance Sheet
Total Assets	29.21B	28.16B	25.59B	24.18B	20.29B	17.87B
Cash, Cash Equivalents and Short-Term Investments	548.00M	457.00M	363.00M	106.00M	144.00M	202.00M
Total Debt	14.46B	14.79B	12.66B	12.22B	10.51B	10.41B
Total Liabilities	20.17B	19.54B	17.46B	17.12B	14.30B	13.32B
Stockholders Equity	9.04B	8.62B	8.13B	7.06B	5.99B	4.54B
Cash Flow
Free Cash Flow	606.00M	419.00M	634.00M	743.00M	491.00M	1.50B
Operating Cash Flow	5.00B	4.55B	4.70B	4.43B	3.69B	2.66B
Investing Cash Flow	-3.25B	-4.15B	-2.98B	-5.02B	-3.61B	-223.00M
Financing Cash Flow	-1.68B	-274.00M	-1.47B	552.00M	-140.00M	-2.29B

United Rentals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 958.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For URI, the sentiment is Positive. The current price of 958.65 is above the 20-day moving average (MA) of 944.51, above the 50-day MA of 888.46, and above the 200-day MA of 743.31, indicating a bullish trend. The MACD of 19.45 indicates Positive momentum. The RSI at 59.73 is Neutral, neither overbought nor oversold. The STOCH value of 29.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for URI.

United Rentals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGRC	81 Outperform	3.04B	12.01	21.70%	1.56%	8.78%	117.40%
URI	79 Outperform	$60.99B	24.52	29.30%	0.74%	6.77%	2.01%
R	78 Outperform	7.64B	16.00	16.46%	1.78%	3.68%	6.61%
HRI	57 Neutral	4.29B	149.77	1.20%	2.14%	11.41%	-92.67%
PONY	56 Neutral	5.83B	-21.22	-28.82%	―	4.27%	-120.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

United Rentals Corporate Events

United Rentals Amends Credit Agreement to Lower Rates

United Rentals, Inc. and its subsidiaries have entered into an amendment to their existing credit agreement, effective August 7, 2025. This amendment reduces the interest rate margins for their term loans while maintaining the total outstanding loans at $987,500,000, which continues to be secured by the same guarantors under the same terms as before.

United Rentals Raises 2025 Guidance Amid Strong Q2 Results

On July 23, 2025, United Rentals announced its second-quarter financial results, reporting a total revenue of $3.943 billion and a net income of $622 million. The company raised its full-year guidance for 2025, reflecting strong performance in its general and specialty rental segments, and increased its planned share repurchases by $400 million to $1.9 billion. The announcement highlights United Rentals’ strategic focus on growth and shareholder returns, supported by increased free cash flow and customer optimism.

United Rentals Secures $4.5 Billion Credit Agreement

On July 10, 2025, United Rentals, Inc. and its subsidiaries entered into a Fifth Amended and Restated Credit Agreement with Bank of America N.A. and other financial institutions. This agreement provides a senior secured asset-based loan facility of $4,500 million, with specific allocations for Canadian, European, and ANZ Borrowers, and includes provisions for an uncommitted incremental increase. The agreement replaces the existing loan facility and includes various covenants and security interests in the assets of U.S. and non-U.S. Guarantors. As of July 9, 2025, $2,049 million was drawn, with $2,428 million available for additional borrowings.

United Rentals Extends Receivables Purchase Agreement

On June 6, 2025, United Rentals, Inc. and its subsidiaries entered into an amendment to extend their receivables purchase agreement until June 24, 2026, with the possibility of further extensions. This amendment, which adds Reliant as a new purchaser, ensures that advances under the facility will continue to be reflected as debt, with receivables in the collateral pool as assets, impacting the company’s financial structure and maintaining its operational flexibility.