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United Rentals
(NYSE:URI)
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Rating:78Outperform
Price Target:
$1,299.00
â–²(13.79% Upside)
Action:Reiterated
Date:07/24/26
The score is driven primarily by solid underlying financial performance and a very strong earnings update (raised guidance, record results, and continued capital returns). Technicals also support the view with a clear uptrend. Offsetting factors are a richer valuation (P/E ~27.5 with a low dividend yield) and fundamental risk from leverage and currently thinner free-cash-flow conversion amid elevated CapEx.
Positive Factors
Market leadership and scale
Being the largest equipment-rental provider in North America gives United Rentals durable competitive advantages: superior fleet breadth, dense branch/delivery network and scale in maintenance and remarketing. Scale supports pricing power, cost efficiencies and resilience across project cycles.
Negative Factors
Elevated leverage
Material outstanding debt increases sensitivity to cyclical demand and refinancing risk; leverage limits flexibility for opportunistic investments or weathering downturns. Although within stated targets and improving, the capital structure remains less conservative and heightens financial risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Market leadership and scale
Being the largest equipment-rental provider in North America gives United Rentals durable competitive advantages: superior fleet breadth, dense branch/delivery network and scale in maintenance and remarketing. Scale supports pricing power, cost efficiencies and resilience across project cycles.
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
$67.18B
Dividend Yield0.7%
Average Volume (3M)490.32K
Price to Earnings (P/E)26.0
Beta (1Y)1.28
Revenue Growth6.88%
EPS Growth7.64%
CountryUS
Employees28,500
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)41.46
Shares Outstanding62,242,490
10 Day Avg. Volume560,257
30 Day Avg. Volume490,322
Financial Highlights & Ratios
PEG Ratio-73.78
Price to Book (P/B)5.81
Price to Sales (P/S)3.24
P/FCF Ratio78.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$1,283.85Price Target Upside12.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)48.64
Revenue Forecast (FY)$17.61B
United Rentals Business Overview & Revenue Model
Company Description
United Rentals, Inc., founded in 1997 and headquartered in Stamford, Connecticut, functions as a prominent equipment rental firm through its various subsidiaries. The company's operations are divided into two main divisions: General Rentals and Sp...
How the Company Makes Money
United Rentals primarily makes money by renting equipment to customers for defined periods (short-term and long-term), generating recurring rental revenue from its fleet. Its core revenue stream is equipment rental charges across two main categori...
United Rentals Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call communicated multiple record results (revenue, rental revenue, EBITDA, EPS), raised full-year guidance, strong free cash flow, and balance sheet strength — all driven by robust demand (particularly large projects) and specialty growth. Challenges highlighted include persistent delivery/repositioning and fuel costs, forecasting variability in ancillary/re-rent, supplier capacity constraints and elevated CapEx needs to sustain high utilization. On balance, the positive operational momentum, upgraded guidance, continued cash generation and improved credit outlook materially outweigh the operational headwinds and forecasting variability.Positive Updates
Record revenue and rental growth
Total revenue grew ~12% year-over-year to $4.4 billion in Q2; rental revenue grew ~12.7% (reported as 'almost 13%') to a record >$3.8 billion.
Negative Updates
Ancillary revenue growth with limited incremental margin
Ancillary and re-rent growth has been outsized but much of it reflects pass-throughs (fuel, delivery) and brought limited incremental margin dollars, complicating margin predictability.
Read all updates
Q2-2026 Updates
Positive
Negative
Record revenue and rental growth
Total revenue grew ~12% year-over-year to $4.4 billion in Q2; rental revenue grew ~12.7% (reported as 'almost 13%') to a record >$3.8 billion.
Read all positive updates
Company Guidance
United Rentals raised its 2026 guidance, now calling for total revenue of $17.5–$17.8 billion (midpoint implying ~10% growth ex-used), used sales around $1.45 billion, adjusted EBITDA of $7.975–$8.125 billion (up $300 million vs. prior guide), gross rental CapEx of $4.85–$5.25 billion (up $450 million) implying net CapEx of $3.4–$3.8 billion, and reaffirmed free cash flow of $2.15–$2.45 billion; the company still plans $1.5 billion of share repurchases (bringing total 2026 shareholder returns to roughly $2 billion, ~ $32/share and ~3% yield), targets leverage in the 1.5–2.5x range (current net leverage ~1.8x) and exits the quarter with nearly $3 billion of liquidity and a year-to-date ROIC of 11.8% above WACC.United Rentals Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.83B | 16.10B | 15.35B | 14.33B | 11.64B | 9.72B |
| Gross Profit | 6.24B | 5.71B | 5.71B | 5.38B | 4.63B | 3.50B |
| EBITDA | 6.76B | 7.16B | 6.98B | 6.63B | 5.46B | 4.24B |
| Net Income | 2.64B | 2.49B | 2.58B | 2.42B | 2.10B | 1.39B |
Balance Sheet | ||||||
| Total Assets | 31.31B | 29.87B | 28.16B | 25.59B | 24.18B | 20.29B |
| Cash, Cash Equivalents and Short-Term Investments | 112.00M | 459.00M | 457.00M | 363.00M | 106.00M | 144.00M |
| Total Debt | 15.38B | 16.48B | 14.79B | 12.66B | 12.22B | 10.51B |
| Total Liabilities | 22.09B | 20.90B | 19.54B | 17.46B | 17.12B | 14.30B |
| Stockholders Equity | 9.22B | 8.97B | 8.62B | 8.13B | 7.06B | 5.99B |
Cash Flow | ||||||
| Free Cash Flow | 632.00M | 662.00M | 419.00M | 634.00M | 743.00M | 491.00M |
| Operating Cash Flow | 5.74B | 5.19B | 4.55B | 4.70B | 4.43B | 3.69B |
| Investing Cash Flow | -4.27B | -3.37B | -4.15B | -2.98B | -5.02B | -3.61B |
| Financing Cash Flow | -1.90B | -1.84B | -274.00M | -1.47B | 552.00M | -140.00M |
United Rentals Technical Analysis
Positive
1141.59
Price Trends
1061.18
Positive
944.29
Positive
901.13
Positive
Market Momentum
8.11
Negative
62.11
Neutral
64.74
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 1141.59 is above the 20-day moving average (MA) of 1074.58, above the 50-day MA of 1061.18, and above the 200-day MA of 901.13, indicating a bullish trend. The MACD of 8.11 indicates Negative momentum. The RSI at 62.11 is Neutral, neither overbought nor oversold. The STOCH value of 64.74 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $67.18B | 26.03 | 29.18% | 0.66% | 6.88% | 7.64% | |
71 Outperform | $2.81B | 18.51 | 12.84% | 1.63% | -0.92% | -39.51% | |
68 Neutral | $9.83B | 20.81 | 16.70% | 1.36% | 1.12% | 3.84% | |
66 Neutral | $6.35B | 17.59 | 13.35% | 1.38% | 22.81% | 15.43% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $4.39B | -65.62 | -7.11% | 1.06% | -4.12% | -487.73% | |
49 Neutral | $5.02B | 102.14 | 2.56% | 1.72% | 28.50% | 67.75% |
* Industrials Sector Average
URI
United Rentals
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217.92
25.30%
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United Rentals Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
United Rentals Posts Record Q2 Results, Raises Guidance
Positive
Jul 22, 2026
United Rentals reported record second-quarter 2026 results on July 22, 2026, with total revenue reaching $4.41 billion and rental revenue climbing 12.7% year-over-year to a record $3.849 billion, driven by higher fleet productivity and increased e...
Business Operations and StrategyPrivate Placements and Financing
United Rentals Extends Receivables Securitization Facility to 2027
Positive
Jun 18, 2026
On June 18, 2026, United Rentals, Inc. and its affiliates amended their long-standing receivables securitization facility, extending the expiration date of the Third Amended and Restated Receivables Purchase Agreement to June 18, 2027. The amendme...
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...
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.