United Rentals (URI)
NYSE:URI
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United Rentals
(NYSE:URI)
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Rating:77Outperform
Price Target:
$1,072.00
â–²(34.65% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong operational/financial momentum and raised 2026 outlook (earnings call) alongside solid profitability and cash generation (financial performance). Technicals add support with a clear uptrend. The main constraints are leverage and capital intensity (weaker FCF conversion) plus only moderate valuation support (P/E ~21.7 and low dividend yield).
Positive Factors
High operating margins
Sustained high margins (TTM EBITDA ~40%, EBIT ~25%, net ~15%) reflect durable operating scale and pricing power across the fleet. Strong profitability supports reinvestment, debt servicing and shareholder returns, improving resilience to cyclical demand shifts over months.
Negative Factors
Elevated leverage
A debt-heavy capital structure (debt-to-equity ~1.84) increases sensitivity to slower demand or rising finance costs. Elevated leverage constrains balance-sheet flexibility for fleet investment and exposes returns to macro shocks, making operational execution and cash flow consistency more critical.
Read all positive and negative factors
Positive Factors
Negative Factors
High operating margins
Sustained high margins (TTM EBITDA ~40%, EBIT ~25%, net ~15%) reflect durable operating scale and pricing power across the fleet. Strong profitability supports reinvestment, debt servicing and shareholder returns, improving resilience to cyclical demand shifts over months.
Read all positive factors
United Rentals Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, showing which areas are driving growth and where there might be opportunities or challenges.
Breaks down revenue across different business segments, showing which areas are driving growth and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyUnited Rentals (URI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$61.92B
Dividend Yield0.88%
Average Volume (3M)569.85K
Price to Earnings (P/E)25.2
Beta (1Y)1.33
Revenue Growth5.05%
EPS Growth1.39%
CountryUS
Employees27,900
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)39.17
Shares Outstanding62,646,557
10 Day Avg. Volume476,755
30 Day Avg. Volume569,847
Financial Highlights & Ratios
PEG Ratio-73.75
Price to Book (P/B)5.81
Price to Sales (P/S)3.24
P/FCF Ratio78.73
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue4.72
Enterprise Value/Gross Profit13.02
Enterprise Value/Ebitda11.85
Forecast
1Y Price Target
$1,074.50Price Target Upside34.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)46.92
Revenue Forecast (FY)$17.25B
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,...
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 ...
United Rentals Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operational and financial momentum: record Q1 revenue, EBITDA and EPS, solid fleet productivity, specialty growth, strong used-equipment demand and healthy free cash flow. Management raised full-year guidance and outlined disciplined capital allocation with meaningful shareholder returns. Counterbalancing these strengths are near-term execution and cost risks — notably restructuring charges, repositioning/delivery costs, used-goods margin volatility, inflation/fuel exposure, and an inconsistency in communicated used-sale figures — that require execution through the busy season. Overall, the positive results and raised guidance outweigh the identified risks, but the latter introduce execution sensitivity for the remainder of the year.Positive Updates
Record First-Quarter Financials
Total revenue nearly $4.0B, up ~7% year-over-year; rental revenue of ~$3.4B, up ~8.7% YoY (first-quarter records). Adjusted EBITDA of roughly $1.76–$1.8B and adjusted EPS of $9.71, up 10% YoY. Adjusted EBITDA margin 44.1%, a 60 bps improvement YoY excluding prior-year H&E benefit.
Negative Updates
Restructuring and One-Time Charges
Recorded $45M of restructuring charges in Q1 related primarily to consolidation of overlapping facilities and headcount reductions; full-year restructuring expected to be $55M–$65M. These costs are a near-term drag on earnings.
Read all updates
Q1-2026 Updates
Positive
Negative
Record First-Quarter Financials
Total revenue nearly $4.0B, up ~7% year-over-year; rental revenue of ~$3.4B, up ~8.7% YoY (first-quarter records). Adjusted EBITDA of roughly $1.76–$1.8B and adjusted EPS of $9.71, up 10% YoY. Adjusted EBITDA margin 44.1%, a 60 bps improvement YoY excluding prior-year H&E benefit.
Read all positive updates
Company Guidance
United Rentals raised its 2026 outlook, now guiding total revenue of $16.9–$17.4 billion (up $100M), used equipment sales of ~$1.45 billion (implying ex‑used growth of ~7% at midpoint), adjusted EBITDA of $7.625–$7.875 billion (up $50M), gross rental CapEx of $4.4–$4.8 billion (up $100M) implying net CapEx of $2.95–$3.35 billion, and free cash flow of $2.15–$2.45 billion; the company cited a strong Q1 that supported the raise (nearly $4.0B total revenue, rental revenue $3.4B up 8.7%, adjusted EBITDA ≈$1.76B with a 44.1% margin, adjusted EPS $9.71), Q1 gross rental CapEx $874M (~19% of full‑year midpoint), Q1 free cash flow >$1.05B (CEO noted $1.1B), and key balance‑sheet/capital‑allocation metrics of ROIC 11.8% (above WACC), net leverage ~1.9x, total liquidity ≈$3.4B, plus a planned $1.5B share repurchase program (combined with dividends to return roughly $2B in 2026, ≈$32/share or ~4% yield).United Rentals Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
67
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.36B | 16.10B | 15.35B | 14.33B | 11.64B | 9.72B |
| Gross Profit | 5.93B | 5.71B | 5.71B | 5.38B | 4.63B | 3.50B |
| EBITDA | 6.52B | 7.16B | 6.98B | 6.63B | 5.46B | 4.24B |
| Net Income | 2.51B | 2.49B | 2.58B | 2.42B | 2.10B | 1.39B |
Balance Sheet | ||||||
| Total Assets | 29.89B | 29.87B | 28.16B | 25.59B | 24.18B | 20.29B |
| Cash, Cash Equivalents and Short-Term Investments | 156.00M | 459.00M | 457.00M | 363.00M | 106.00M | 144.00M |
| Total Debt | 15.02B | 16.48B | 14.79B | 12.66B | 12.22B | 10.51B |
| Total Liabilities | 20.92B | 20.90B | 19.54B | 17.46B | 17.12B | 14.30B |
| Stockholders Equity | 8.97B | 8.97B | 8.62B | 8.13B | 7.06B | 5.99B |
Cash Flow | ||||||
| Free Cash Flow | 663.00M | 662.00M | 419.00M | 634.00M | 743.00M | 491.00M |
| Operating Cash Flow | 5.28B | 5.19B | 4.55B | 4.70B | 4.43B | 3.69B |
| Investing Cash Flow | -3.86B | -3.37B | -4.15B | -2.98B | -5.02B | -3.61B |
| Financing Cash Flow | -1.82B | -1.84B | -274.00M | -1.47B | 552.00M | -140.00M |
United Rentals Technical Analysis
Positive
796.15
Price Trends
857.64
Positive
856.71
Positive
872.19
Positive
Market Momentum
28.98
Positive
66.69
Neutral
93.58
Negative
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 796.15 is below the 20-day moving average (MA) of 950.81, below the 50-day MA of 857.64, and below the 200-day MA of 872.19, indicating a bullish trend. The MACD of 28.98 indicates Positive momentum. The RSI at 66.69 is Neutral, neither overbought nor oversold. The STOCH value of 93.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for URI.
United Rentals Risk Analysis
United Rentals disclosed 40 risk factors in its most recent earnings report. United Rentals reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
United Rentals Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $61.92B | 25.18 | 27.88% | 0.88% | 5.05% | 1.39% | |
71 Outperform | $9.63B | 20.11 | 16.36% | 1.75% | -0.07% | 4.18% | |
69 Neutral | $2.74B | 17.29 | 12.84% | 1.79% | 3.14% | -34.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $6.05B | 17.74 | 12.46% | 1.41% | 16.92% | 18.00% | |
57 Neutral | $4.68B | -68.56 | -7.11% | 1.44% | -4.12% | -487.73% | |
56 Neutral | $4.58B | -885.78 | -0.26% | 1.79% | 28.39% | -105.83% |
* Industrials Sector Average
URI
United Rentals
995.67
310.28
45.27%
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United Rentals Corporate Events
Executive/Board ChangesShareholder Meetings
United Rentals Shareholders Back Board, Auditors and Pay Plan
Positive
May 8, 2026
At its annual meeting held on May 8, 2026, United Rentals stockholders elected all 11 nominated directors, including Chief Executive Officer Matthew J. Flannery and Chairman Michael J. Kneeland, to one-year terms on the board. Investors also ratif...
Business Operations and StrategyFinancial Disclosures
United Rentals Posts Record Q1 Results, Raises 2026 Outlook
Positive
Apr 22, 2026
United Rentals reported that on April 22, 2026, it delivered record first-quarter results, with total revenue of $3.985 billion, rental revenue of $3.419 billion, net income of $531 million and first‑quarter records in EPS and adjusted EBITD...
Business Operations and Strategy
United Rentals Leadership to Present at Citi 2026 Conference
Positive
Feb 10, 2026
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 fi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.