United Rentals (URI) AI Stock Analysis

• Market Cap: $45.51B
• Dividend Yield: 0.95%
• Average Volume (3M): 617.41K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.68
• Revenue Growth: 7.20%
• EPS Growth: 4.56%
• Country: US
• Employees: 27,900
• Sector: Industrials
• Sector Strength: 93
• Industry: Rental & Leasing Services
• EPS (TTM): 8.86
• Shares Outstanding: 64,999,040
• 10 Day Avg. Volume: 519,492
• 30 Day Avg. Volume: 617,413
• PEG Ratio: -47.69
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 68.40
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 9.45
• Enterprise Value/Ebitda: 2.16
• 1Y Price Target: $735.90
• Price Target Upside: 5.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 80 Outperform
• Price Target: ―

United Rentals demonstrates strong financial performance with efficient operations and robust profitability metrics. The positive earnings call highlights significant growth and strong cash flow, reinforcing the company's solid market position. While high debt levels and some technical bearish trends are concerns, the overall outlook remains favorable with a fair valuation and strategic focus on shareholder value.

Positive Factors

Market Share

Management showcased its ability to drive outsized market share gains through leveraging the scale of its industry-leading fleet size and its differentiated one-stop-shop portfolio, including high-value niche Specialty offerings.

Revenue Growth

URI's outsized customer mix to larger National Accounts fueled by secular mega-project activity should support more resilient rental revenue growth and fleet dynamics vs. its largest peers.

Negative Factors

Gross Margins

A softer supply/demand environment will also pressure GenRent gross margins, making it difficult to pass on fleet inflation costs to customers.

Productivity Pressure

GenRent will be an overhang in 2025, with fleet growth and productivity being pressured.

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, which accounts for the majority of its income. The company leases a wide variety of equipment on both short-term and long-term contracts, catering to industries such as construction, manufacturing, and energy. Additionally, United Rentals offers complementary services that contribute to its earnings, including equipment sales, maintenance and repair services, and safety training programs. The company also benefits from strategic partnerships with equipment manufacturers and suppliers, which enhance its product offerings and operational efficiency. Furthermore, United Rentals continually invests in technology and innovation to improve customer service and operational processes, which supports its revenue growth.

United Rentals Financial Statement Overview

Summary

United Rentals exhibits strong financial performance with robust profitability metrics, efficient operations, and effective cash flow management. While the company shows healthy growth and a stable capital structure, the relatively high debt levels and decline in free cash flow growth are areas to watch.

Income Statement

United Rentals demonstrates a strong income statement with robust gross and net profit margins, indicating efficient operations and solid profitability. The TTM (Trailing-Twelve-Months) gross profit margin is 38.84%, and the net profit margin is 16.37%, both suggesting a well-managed cost structure. The revenue growth rate from 2024 to TTM is moderate at 1.53%, showing consistent expansion, although slightly lower than previous years. The EBIT margin of 25.79% and EBITDA margin of 37.10% also reflect strong operational efficiency. Overall, the income statement shows solid profitability with stable growth trends.

Balance Sheet

The balance sheet presents a solid equity base with a moderate equity ratio of 31.33% TTM, indicating a stable capital structure. The debt-to-equity ratio is relatively high at 1.59, suggesting the company is leveraging debt to fuel its operations, which could pose risks if market conditions change. Return on Equity (ROE) is strong at 29.02%, reflecting efficient use of equity capital to generate profits. Overall, the balance sheet points to a well-capitalized company, albeit with a notable reliance on debt.

Cash Flow

United Rentals exhibits strong cash flow management, with a healthy operating cash flow to net income ratio of 1.94 TTM, demonstrating robust cash generation from operations. The free cash flow to net income ratio is 0.54, indicating effective capital expenditure management. However, the free cash flow growth rate shows a decline of 66.97% from 2024 to TTM, which warrants monitoring. Despite this decline, the company maintains a solid cash position and effective cash utilization strategies.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.58B	15.35B	14.33B	11.64B	9.72B	8.53B
	Gross Profit
6.05B	6.15B	5.81B	5.00B	3.85B	3.18B
	EBIT
4.02B	4.07B	3.83B	3.23B	2.28B	1.80B
	EBITDA
6.42B	6.98B	6.63B	5.46B	2.64B	2.19B
	Net Income Common Stockholders
2.55B	2.58B	2.42B	2.10B	1.39B	890.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
542.00M	457.00M	363.00M	106.00M	144.00M	202.00M
	Total Assets
28.05B	28.16B	25.59B	24.18B	20.29B	17.87B
	Total Debt
13.99B	14.79B	12.66B	12.01B	10.31B	10.23B
	Net Debt
13.45B	14.33B	12.30B	11.91B	10.16B	10.03B
	Total Liabilities
19.26B	19.54B	17.46B	17.12B	14.30B	13.32B
	Stockholders Equity
8.79B	8.62B	8.13B	7.06B	5.99B	4.54B
Cash Flow		Free Cash Flow
639.00M	419.00M	634.00M	743.00M	491.00M	1.50B
	Operating Cash Flow
4.94B	4.55B	4.70B	4.43B	3.69B	2.66B
	Investing Cash Flow
-3.23B	-4.15B	-2.98B	-5.02B	-3.61B	-223.00M
	Financing Cash Flow
-1.58B	-274.00M	-1.47B	552.00M	-140.00M	-2.29B

United Rentals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 700.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 700.1 is above the 20-day moving average (MA) of 680.29, above the 50-day MA of 636.96, and below the 200-day MA of 724.04, indicating a neutral trend. The MACD of 23.41 indicates Positive momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 32.61 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
URI	80 Outperform	$45.51B	18.13	30.17%	0.95%	7.20%	4.56%
MGRC	79 Outperform	$2.79B	11.75	22.80%	1.68%	7.31%	91.99%
R	69 Neutral	$6.17B	13.06	16.41%	2.10%	6.21%	47.05%
HRI	68 Neutral	$3.58B	28.02	9.60%	2.14%	8.34%	-63.02%
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
PONY	59 Neutral	$4.77B	―	-33.58%	―	4.27%	-120.11%
HEES	56 Neutral	$3.47B	38.00	15.74%	1.16%	-3.52%	-46.60%

United Rentals Corporate Events

United Rentals Holds Annual Meeting, Elects Board

On May 8, 2025, United Rentals held its Annual Meeting where stockholders voted on several key issues. They elected ten directors to the board, ratified Ernst & Young LLP as the public accounting firm for the fiscal year ending December 31, 2025, approved executive compensation on a non-binding basis, and rejected a proposal to improve shareholder written consent.

United Rentals Announces Q1 2025 Results and Buyback

On April 23, 2025, United Rentals announced its first quarter 2025 financial results, reaffirmed its full-year guidance, and introduced a new $1.5 billion share repurchase program. The company reported a total revenue of $3.719 billion, with a net income of $518 million and an adjusted EBITDA of $1.671 billion. Despite a decrease in net income margin, the company saw a 7.4% increase in rental revenue year-over-year, driven by demand across its end-markets and the impact of the Yak acquisition. United Rentals plans to repurchase $1.25 billion in shares in 2025, reflecting its strategy to capitalize on growth opportunities and differentiate from competitors.