United Rentals (URI) AI Stock Analysis

• Market Cap: $49.07B
• Dividend Yield: 0.88%
• Average Volume (3M): 557.76K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.46
• Revenue Growth: 6.73%
• EPS Growth: 1.45%
• Country: US
• Employees: 27,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 11.09
• Shares Outstanding: 62,998,146
• 10 Day Avg. Volume: 762,135
• 30 Day Avg. Volume: 557,765
• PEG Ratio: -73.75
• Price to Book (P/B): 5.81
• Price to Sales (P/S): 3.24
• P/FCF Ratio: 78.73
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 4.05
• Enterprise Value/Gross Profit: 11.42
• Enterprise Value/Ebitda: 10.06
• 1Y Price Target: $961.08
• Price Target Upside: 21.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $854.00 ▲(7.73% Upside)

Solid fundamentals and a positive earnings outlook with strong planned capital returns support the score, but heavy leverage and a clearly weak technical backdrop (price below key moving averages despite oversold readings) meaningfully temper it. Valuation is reasonable but not compelling, and the dividend yield is low.

Positive Factors

Scale & Market Leadership

Market-leading scale and a broad branch/fleet footprint create durable competitive advantages: superior equipment availability, procurement leverage, and geographic diversity. This one-stop-shop position supports steady demand capture, pricing power, and resilience across construction cycles over months.

Consistent Operating Cash Flow Growth

Sustained growth in operating cash flow underpins the firm's ability to fund maintenance capex, growth investments, and shareholder returns without relying solely on external financing. Strong OCF improves multi-month liquidity and supports the announced capital allocation plans.

Disciplined Capital Returns

A formal, sizable buyback program plus dividend increase signal management confidence and a durable commitment to returning cash. When paired with strong OCF, this disciplined allocation can sustainably enhance shareholder value and reflects predictable capital allocation over the coming 2–6 months.

Negative Factors

Elevated Leverage

Material debt increase and historically elevated leverage reduce financial flexibility and raise refinancing and interest-rate exposure. In a downturn or if cash flow softens, the higher leverage constrains capital allocation and increases balance-sheet risk over the medium term.

Free Cash Flow Volatility

Significant year-to-year FCF swings complicate consistent debt reduction and buyback pacing. Even with a rebound, this variability implies execution and timing risks (used-asset sales, working capital, capex) that can affect cash returns and leverage control over several quarters.

Margin Pressure from Repositioning & Inflation

Persistent elevated repositioning, delivery and inflation-driven operating costs can structurally compress margins absent sustained efficiency gains. If these cost patterns persist, profitability and cash conversion could be impaired for multiple quarters, pressuring returns and capital plans.

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

Strong multi-year revenue and profit growth with consistently high operating cash flow, supported by solid margins and earnings power. Offsets include meaningful leverage and historically uneven free-cash-flow conversion (notably the 2024 drop), which reduces flexibility in a downturn.

Income Statement

Revenue has grown strongly over the last several years (from ~$8.5B in 2020 to ~$16.1B in 2025), supporting consistently high operating profitability. Margins were solid in 2022–2024 (gross margin ~37–43% and net margin ~17–18% in 2022–2024), with net income remaining strong (~$2.4–$2.6B in 2023–2025). The key weakness is some recent margin compression versus 2022–2023 (gross profit dollars rose, but 2024 gross margin stepped down vs. 2022–2023), suggesting incremental growth may be coming at slightly lower profitability.

Balance Sheet

The company operates with meaningful leverage: total debt is high and has increased in dollars (about $10.4B in 2020 to ~$15.4B in 2025), and debt relative to equity has generally been elevated (about 1.6–2.3x in 2020–2024). Offsetting that, equity has also grown (about $4.5B in 2020 to ~$9.0B in 2025) and profitability on equity has been very strong in the years provided (~30% in 2022–2024), which helps support the capital structure. Overall, the balance sheet is workable but more levered than ideal, leaving less flexibility if the cycle turns.

Cash Flow

Operating cash flow is consistently strong and has trended up overall (about $2.7B in 2020 to ~$5.2B in 2025), indicating healthy cash generation from the core business. However, free cash flow has been volatile: it was solid in 2020–2023 (~$0.6B–$1.5B) but dropped sharply in 2024 (~$0.4B), implying higher reinvestment needs and/or working-capital swings. 2025 shows a major rebound in free cash flow (~$5.2B), which is a meaningful positive, but the year-to-year variability is a key risk factor for cash return and debt reduction consistency.

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

• Technical Analysis Sentiment: Negative
• Last Price: 792.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 792.75 is below the 20-day moving average (MA) of 893.59, below the 50-day MA of 845.16, and below the 200-day MA of 830.79, indicating a bearish trend. The MACD of -13.56 indicates Positive momentum. The RSI at 35.16 is Neutral, neither overbought nor oversold. The STOCH value of 13.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for URI.

United Rentals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GATX	75 Outperform	$6.50B	21.27	11.93%	1.41%	10.66%	13.61%
R	73 Outperform	$7.72B	16.22	16.26%	1.75%	1.68%	9.91%
URI	67 Neutral	$49.07B	20.18	28.36%	0.88%	6.73%	1.45%
HRI	67 Neutral	$4.98B	―	-4.05%	1.79%	19.40%	-120.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WSC	62 Neutral	$3.64B	16.53	21.15%	1.44%	-3.64%	867.62%
MGRC	58 Neutral	$2.84B	19.54	12.70%	1.79%	4.77%	-35.44%

United Rentals Corporate Events

United Rentals Posts Record 2025 Results, Sets 2026 Outlook

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 of $2.18 billion, despite margin pressure from inflation, higher delivery and depreciation costs, and weaker used equipment sales. Fleet productivity improved 0.5% in the quarter and 2.2% for the year, the specialty segment delivered 9.2% rental revenue growth albeit with a notable gross margin decline, and the company returned $2.36 billion to shareholders in 2025 through buybacks and dividends. United Rentals introduced its 2026 outlook calling for further growth, with total revenue guided to $16.8–$17.3 billion, adjusted EBITDA of $7.58–$7.83 billion, and free cash flow of $2.15–$2.45 billion, while committing to return about $2 billion to shareholders in 2026 via a planned $1.5 billion of share repurchases and a 10% dividend increase, underpinned by a newly announced $5 billion share repurchase authorization with no set expiration date, reinforcing its capital-return strategy and confidence in ongoing cash generation.

The most recent analyst rating on (URI) stock is a Hold with a $979.00 price target. To see the full list of analyst forecasts on United Rentals stock, see the URI Stock Forecast page.

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.

The most recent analyst rating on (URI) stock is a Buy with a $1079.00 price target. To see the full list of analyst forecasts on United Rentals stock, see the URI Stock Forecast page.

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.

The most recent analyst rating on (URI) stock is a Buy with a $899.00 price target. To see the full list of analyst forecasts on United Rentals stock, see the URI Stock Forecast page.