United Rentals, Inc. (NYSE: URI)

Sector: Industrials Industry: Rental & Leasing Services CIK: 0001067701
Market Cap 55.62 Bn
P/B 6.20
P/E 22.30
P/S 3.45
ROIC (Qtr) 12.23
Div Yield % 0.83
Rev 1y % (Qtr) 2.76
Total Debt (Qtr) 15.35 Bn
Debt/Equity (Qtr) 1.71
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About

Investment thesis

Bull case

  • Operating cash flow of 5.19B provides strong 38.73x coverage of stock compensation 134M, indicating sustainable incentive practices.
  • Strong operating cash flow of 5.19B provides 3x coverage of SG&A expenses 1.73B, showing efficient operational cost management.
  • Retained earnings of 15.84B provide full 1.15x coverage of long-term debt 13.78B, indicating strong internal capital position.
  • Tangible assets of 22.27B provide robust 15.19x coverage of other current liabilities 1.47B, indicating strong asset backing.
  • Operating cash flow of 5.19B fully covers other non-current liabilities 3.30B by 1.57x, showing strong long-term stability.

Bear case

  • Operating cash flow of 5.19B barely covers its investment activities of (3.37B), with a coverage ratio of -1.54, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 5.19B provides thin coverage of dividend payments of (464M) with a -11.19 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 459M provide limited coverage of acquisition spending of (357M), which is -1.29x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 2.51B relative to inventory of 240M (10.46 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 4.05B show weak coverage of depreciation charges of 3.11B, with a 1.30 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Rental & Leasing Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 URI United Rentals, Inc. 55.62 Bn 22.30 3.45 15.35 Bn
2 FTAI FTAI Aviation Ltd. 27.80 Bn -179.72 106.00 3.45 Bn
3 AER AerCap Holdings N.V. 26.27 Bn 7.00 3.08 43.57 Bn
4 UHAL U-Haul Holding Co /NV/ 13.75 Bn 106.91 2.29 8.06 Bn
5 GATX Gatx Corp 9.00 Bn 53.16 6.81 9.03 Bn
6 R Ryder System Inc 8.88 Bn 17.80 0.70 7.65 Bn
7 AL Air Lease Corp 7.23 Bn 6.92 2.40 19.73 Bn
8 HRI Herc Holdings Inc 5.00 Bn 5,004.00 1.14 9.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.35 1.32
EV to Cash from Ops. EV/CFO 13.55 77.20
EV to Debt EV to Debt 4.58 3.45
EV to EBIT EV/EBIT 17.35 -105.66
EV to EBITDA EV/EBITDA 9.93 20.85
EV to Free Cash Flow [EV/FCF] EV/FCF 33.00 -1.38
EV to Market Cap EV to Market Cap 1.26 3.10
EV to Revenue EV/Rev 4.37 9.87
Price to Book Value [P/B] P/B 6.20 7.72
Price to Earnings [P/E] P/E 22.30 277.95
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 5.38 3.00
Dividend Payout Ratio % Div Payout % (Qtr) 18.50 500.03
Dividend per Basic Share Div per Share (Qtr) 7.16 1.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 21.38 6.22
Interest Coverage Int. cover (Qtr) 5.66 -60.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -20.48 17.05
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.44 54.66
Dividend Growth (1y) % Div 1y % (Qtr) 9.82 0.10
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -2.30 38.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.62 5.40
EBIT Growth (1y) % EBIT 1y % (Qtr) -0.61 2.84
EBT Growth (1y) % EBT 1y % (Qtr) -1.48 42.60
EPS Growth (1y) % EPS 1y % (Qtr) -0.28 243.85
FCF Growth (1y) % FCF 1y % (Qtr) 6.18 5.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.10 31.59
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.54 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.06 0.03
Cash Ratio Cash Ratio (Qtr) 0.12 0.21
Current Ratio Curr Ratio (Qtr) 0.95 1.01
Debt to Equity Ratio Debt/Equity (Qtr) 1.71 20.57
Interest Cover Ratio Int Coverage (Qtr) 5.66 -60.94
Times Interest Earned Times Interest Earned (Qtr) 5.66 -60.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 44.50 35.32
EBIT Margin % EBIT Margin % (Qtr) 25.18 12.98
EBT Margin % EBT Margin % (Qtr) 20.73 3.50
Gross Margin % Gross Margin % (Qtr) 38.20 42.91
Net Profit Margin % Net Margin % (Qtr) 15.50 1.24