United Rentals (URI) AI Stock Analysis

• Market Cap: $51.86B
• Dividend Yield: 0.88%
• Average Volume (3M): 622.36K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.57
• 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: 699,117
• 30 Day Avg. Volume: 622,355
• 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: $1,032.47
• Price Target Upside: 26.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 42.78
• Revenue Forecast (FY): $16.13B

• Rating: 73 Outperform
• Price Target: $899.00 ▲(10.31% Upside)

United Rentals' strong financial performance and positive earnings call sentiment are significant strengths, indicating robust growth potential. However, technical indicators suggest bearish momentum, and the high debt level poses a risk. The stock is fairly valued with a moderate P/E ratio and low dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial stability and expansion.

Specialty Business Expansion

The expansion in the Specialty business highlights the company's ability to diversify and capture niche markets, enhancing competitive advantage.

Cash Flow and Shareholder Returns

Strong cash flow generation and shareholder returns reflect robust financial health and commitment to enhancing shareholder value over time.

Negative Factors

High Debt Levels

Elevated debt levels can limit financial flexibility and increase vulnerability to interest rate hikes, potentially impacting long-term growth.

Margin Compression

Margin compression from rising costs may pressure profitability, challenging the company to maintain its competitive pricing and profitability.

Increased Delivery Costs

Rising delivery costs can erode profit margins and necessitate strategic cost management to sustain long-term operational efficiency.

United Rentals Business Overview & Revenue Model

Company Description

United Rentals, Inc. is the largest equipment rental company in the world, specializing in providing a wide range of heavy equipment, tools, and services for various industries including construction, industrial, and municipal sectors. The company operates through a vast network of rental locations across North America and has expanded its offerings to include specialty rentals, equipment sales, and related services such as maintenance and repair. United Rentals is committed to supporting its customers with high-quality equipment and technology solutions to enhance productivity and safety on job sites.

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: Neutral
• Last Price: 814.97
• 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 Neutral. The current price of 814.97 is below the 20-day moving average (MA) of 830.74, below the 50-day MA of 906.45, and above the 200-day MA of 780.43, indicating a neutral trend. The MACD of -30.49 indicates Negative momentum. The RSI at 38.84 is Neutral, neither overbought nor oversold. The STOCH value of 48.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for URI.

United Rentals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URI	73 Outperform	$51.86B	20.97	28.78%	0.88%	6.73%	1.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WSC	62 Neutral	$3.50B	15.92	21.15%	1.15%	-3.64%	867.62%
HRI	58 Neutral	$4.54B	―	-4.05%	2.01%	19.40%	-120.47%
MGRC	58 Neutral	$2.57B	17.64	12.70%	1.86%	4.77%	-35.44%
CTOS	49 Neutral	$1.47B	―	-3.00%	―	7.39%	34.57%

United Rentals Corporate Events

United Rentals Reports Strong Q3 2025 Results

United Rentals, Inc. is the largest equipment rental company globally, operating in the construction and industrial sectors with a vast network of rental locations across North America, Europe, Australia, and New Zealand. The company offers a wide range of rental equipment and is a significant player in its industry.

United Rentals Reports Strong Q3 Earnings Amid Cost Challenges

United Rentals’ recent earnings call painted a picture of robust revenue growth and a positive demand outlook, particularly in its Specialty business. However, the company is grappling with increased delivery and ancillary costs, which have led to margin compression and pose challenges to profitability. Despite these hurdles, United Rentals remains optimistic about its growth trajectory and shareholder returns.

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.

The most recent analyst rating on (URI) stock is a Buy with a $1152.00 price target. To see the full list of analyst forecasts on United Rentals stock, see the URI Stock Forecast page.