United Rentals (URI)
NYSE:URI
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United Rentals
(NYSE:URI)
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Rating:71Outperform
Price Target:
$853.00
â–²(10.50% Upside)
Action:ReiteratedDate: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-driven revenue and profitability
United Rentals’ large scale and multi-year revenue expansion underpin durable operating leverage and margin resilience. Growing rental revenues and sustained high operating profitability create a structural cushion versus cyclical dips, supporting cash generation and reinvestment capacity over the next 2–6 months.
Negative Factors
Elevated leverage
Material debt levels limit financial flexibility and increase sensitivity to cash-flow volatility. If fleet productivity or used-equipment proceeds soften, higher leverage constrains the pace of debt reduction, capex flexibility, and buybacks, making capital allocation more sensitive to cyclical swings over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale-driven revenue and profitability
United Rentals’ large scale and multi-year revenue expansion underpin durable operating leverage and margin resilience. Growing rental revenues and sustained high operating profitability create a structural cushion versus cyclical dips, supporting cash generation and reinvestment capacity over the next 2–6 months.
Read all positive factors
United Rentals (URI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.63B
Dividend Yield0.88%
Average Volume (3M)591.43K
Price to Earnings (P/E)19.6
Beta (1Y)1.42
Revenue Growth6.73%
EPS Growth1.45%
CountryUS
Employees27,900
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)11.09
Shares Outstanding62,998,146
10 Day Avg. Volume470,415
30 Day Avg. Volume591,428
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 Cap1.33
Enterprise Value/Revenue4.02
Enterprise Value/Gross Profit11.33
Enterprise Value/Ebitda9.98
Forecast
1Y Price Target
$928.10Price Target Upside20.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)46.32
Revenue Forecast (FY)$17.11B
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 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 Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial performance: record revenue, record rental revenue and EBITDA, strong free cash flow generation, robust capital returns, healthy specialty expansion, and confident 2026 guidance with revenue growth >6% ex-used. Notable near-term headwinds include a shortfall in used sales volumes, lumpiness in the matting business, fleet productivity softness in Q4 driven by mix/timing, and margin pressure from elevated repositioning and inflationary costs. Management outlined actions to protect margins and expects most cost mitigation to phase in during 2026. Overall, the positives (record results, cash generation, strong balance sheet, shareholder returns, and constructive guidance) outweigh the operational and margin challenges highlighted.Positive Updates
Record Revenue and EBITDA
Q4 total revenue grew 2.8% year-over-year to $4.2B; rental revenue grew 4.6% to $3.58B (Q4 records). Adjusted EBITDA for the quarter was $1.901B with an as-reported EBITDA margin of 45.2%.
Negative Updates
Used Sales Volume Shortfall and Lower Used Gross Profit
Full-year OEC sold totaled $2.73B, slightly below prior guidance of $2.8B driven by holding high-time assets to meet demand. Q4 saw $769M of OEC sold at a 50% recovery rate, producing $386M of proceeds and an adjusted margin of 47.2%. Used gross profits declined by ~$39M in Q4 due primarily to the shortfall in volumes.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and EBITDA
Q4 total revenue grew 2.8% year-over-year to $4.2B; rental revenue grew 4.6% to $3.58B (Q4 records). Adjusted EBITDA for the quarter was $1.901B with an as-reported EBITDA margin of 45.2%.
Read all positive updates
Company Guidance
United Rentals guided 2026 total revenue of $16.8–$17.3 billion (≈5.9% growth at the midpoint; >6% growth ex‑used), with used sales of roughly $1.45 billion on OEC sold of about $2.8 billion; adjusted EBITDA of $7.575–$7.825 billion (implying flat margins at the midpoint excluding the prior‑year H&E benefit). Management expects gross rental CapEx of $4.3–$4.7 billion (about $300 million higher at midpoint versus 2025), net CapEx of $2.85–$3.25 billion (maintenance CapEx ~ $3.4 billion and growth CapEx ≈ $1.1 billion at midpoint), and free cash flow of $2.15–$2.45 billion; they plan $1.5 billion of share repurchases (supported by a new $5 billion buyback program), will raise the quarterly dividend 10% to $1.97 ($7.88 annualized), and intend to return roughly $2 billion to shareholders (~$32 per share, ≈3.5% yield), with the guidance embedding cost actions to offset elevated repositioning and ancillary pressures.United Rentals Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
63
Positive
Cash Flow
72
Positive
| 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
Negative
771.93
Price Trends
799.76
Negative
822.43
Negative
857.41
Negative
Market Momentum
-12.80
Negative
52.93
Neutral
88.01
Negative
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 771.93 is above the 20-day moving average (MA) of 737.97, below the 50-day MA of 799.76, and below the 200-day MA of 857.41, indicating a neutral trend. The MACD of -12.80 indicates Negative momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 88.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $48.63B | 19.64 | 27.87% | 0.88% | 6.73% | 1.45% | |
70 Outperform | $2.81B | 12.96 | 13.21% | 1.79% | 4.77% | -35.44% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $6.84B | 18.22 | 12.47% | 1.41% | 10.66% | 13.61% | |
61 Neutral | $8.63B | 16.03 | 16.36% | 1.75% | 1.68% | 9.91% | |
51 Neutral | $3.37B | -64.81 | -5.35% | 1.44% | -3.64% | 867.62% | |
47 Neutral | $3.44B | 4,644.29 | 0.06% | 1.79% | 19.40% | -120.47% |
* Industrials Sector Average
URI
United Rentals
771.93
180.32
30.48%
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United Rentals Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
United Rentals Adds Alexander Taussig to Board
Positive
Feb 4, 2026
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 techno...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
United Rentals Posts Record 2025 Results, Sets 2026 Outlook
Positive
Jan 28, 2026
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...
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.