United Rentals (URI) AI Stock Analysis

• Market Cap: $51.69B
• Dividend Yield: 0.88%
• Average Volume (3M): 713.41K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.47
• Revenue Growth: 6.73%
• EPS Growth: 1.45%
• Country: US
• Employees: 27,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 11.70
• Shares Outstanding: 63,630,146
• 10 Day Avg. Volume: 836,005
• 30 Day Avg. Volume: 713,406
• PEG Ratio: 1.88
• Price to Book (P/B): 5.42
• Price to Sales (P/S): 3.05
• P/FCF Ratio: 111.54
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 4.76
• Enterprise Value/Gross Profit: 13.24
• Enterprise Value/Ebitda: 11.76
• 1Y Price Target: $1,008.38
• Price Target Upside: 23.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 42.69
• Revenue Forecast (FY): $16.13B

• Rating: 73 Outperform
• Price Target: $875.00 ▲(7.13% Upside)

United Rentals' strong financial performance and positive earnings call sentiment are major strengths, driving the overall score. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. The company's high debt level and margin pressures are notable risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, positioning the company for sustained expansion.

Specialty Business Expansion

Growth in the Specialty business enhances diversification and strengthens market position, supporting long-term resilience and profitability.

Free Cash Flow Generation

Strong free cash flow generation provides financial flexibility for strategic investments and shareholder returns, bolstering long-term value.

Negative Factors

High Debt Levels

Elevated debt levels may limit financial flexibility and increase vulnerability to interest rate changes, impacting long-term financial health.

Margin Compression

Margin compression from rising costs can pressure profitability, challenging the company's ability to maintain robust earnings over time.

Increased Delivery Costs

Rising delivery costs can erode profit margins, necessitating strategic cost management to sustain long-term financial performance.

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 largest portion of its income. The company charges customers rental fees based on the duration of use, type of equipment, and rental terms. In addition to rental income, United Rentals earns revenue from the sale of used equipment, providing maintenance and repair services, and offering ancillary services such as transportation and logistics. The company also benefits from strategic partnerships with manufacturers and suppliers, allowing it to offer a diverse fleet of high-demand equipment. Seasonal demand fluctuations and economic cycles in construction and industrial activities also significantly influence its earnings.

United Rentals Financial Statement Overview

Summary

United Rentals demonstrates strong financial performance with consistent revenue growth and profitability. The high debt level is a concern, but the company effectively manages its equity and cash flows, positioning it well for future growth in the rental and leasing industry.

Income Statement

United Rentals shows strong revenue growth with a TTM increase of 1.5% and consistent profitability, evidenced by a solid net profit margin of 15.8% and an EBIT margin of 25.6%. However, there is a slight decline in gross profit margin over the years, indicating potential cost pressures.

Balance Sheet

The company maintains a high debt-to-equity ratio of 1.69, which could pose a risk if interest rates rise. However, the return on equity remains robust at 28.6%, reflecting efficient use of equity capital. The equity ratio is stable, indicating a balanced asset structure.

Cash Flow

Operating cash flow is strong, with a healthy operating cash flow to net income ratio of 1.18. Free cash flow has grown significantly, enhancing financial flexibility. However, the free cash flow to net income ratio of 0.86 suggests room for improvement in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.99B	15.35B	14.33B	11.64B	9.72B	8.53B
Gross Profit	5.75B	5.71B	5.38B	4.63B	3.50B	2.83B
EBITDA	6.47B	6.98B	6.63B	5.46B	4.24B	3.76B
Net Income	2.53B	2.58B	2.42B	2.10B	1.39B	890.00M
Balance Sheet
Total Assets	30.07B	28.16B	25.59B	24.18B	20.29B	17.87B
Cash, Cash Equivalents and Short-Term Investments	512.00M	457.00M	363.00M	106.00M	144.00M	202.00M
Total Debt	15.21B	14.79B	12.66B	12.22B	10.51B	10.41B
Total Liabilities	21.07B	19.54B	17.46B	17.12B	14.30B	13.32B
Stockholders Equity	9.00B	8.62B	8.13B	7.06B	5.99B	4.54B
Cash Flow
Free Cash Flow	4.30B	419.00M	634.00M	743.00M	491.00M	1.50B
Operating Cash Flow	4.98B	4.55B	4.70B	4.43B	3.69B	2.66B
Investing Cash Flow	-3.28B	-4.15B	-2.98B	-5.02B	-3.61B	-223.00M
Financing Cash Flow	-1.66B	-274.00M	-1.47B	552.00M	-140.00M	-2.29B

United Rentals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 816.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 816.73 is above the 20-day moving average (MA) of 808.38, below the 50-day MA of 855.40, and above the 200-day MA of 793.05, indicating a neutral trend. The MACD of -9.49 indicates Negative momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 38.47 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
GATX	76 Outperform	$6.17B	20.19	11.93%	1.41%	10.66%	13.61%
URI	73 Outperform	$51.69B	20.90	28.78%	0.88%	6.73%	1.45%
R	73 Outperform	$7.73B	16.25	16.26%	1.80%	1.68%	9.91%
WSC	69 Neutral	$3.43B	15.59	21.15%	1.48%	-3.64%	867.62%
HRI	67 Neutral	$5.12B	-62.32	-4.05%	1.82%	19.40%	-120.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGRC	58 Neutral	$2.66B	18.29	12.70%	1.79%	4.77%	-35.44%

United Rentals Corporate Events

United Rentals Completes $1.5 Billion Senior Notes Offering

On December 1, 2025, United Rentals (North America), Inc. completed a $1.5 billion offering of 5.375% Senior Notes due 2033 in a private placement. The Notes, which are senior obligations, are intended to enhance the company’s financial flexibility and are subject to specific covenants and redemption options, potentially impacting the company’s financial strategy and stakeholder interests.

United Rentals Announces $1.5 Billion Senior Notes Offering

On November 24, 2025, United Rentals, Inc. announced that its subsidiary, United Rentals (North America), Inc., plans to offer $1.5 billion in senior notes due 2033 in a private offering. The proceeds from this offering will be used to redeem existing senior notes due 2027 and for general corporate purposes, including reducing borrowings under its revolving credit facility. This strategic financial move is expected to impact the company’s debt structure and operational flexibility, potentially influencing its market position and stakeholder interests.

United Rentals Reports Strong Q3 2025 Financial Results

On October 22, 2025, United Rentals announced strong financial results for the third quarter of 2025, with total revenue of $4.229 billion and a net income of $701 million. The company also raised its full-year guidance for revenue and capital spending, driven by strong customer demand. Despite a slight decrease in net income margin, United Rentals reported a record adjusted EBITDA of $1.946 billion. The company highlighted growth opportunities in large projects and key verticals, emphasizing its strategy for profitable growth and long-term shareholder value.