Sunbelt Rentals Holdings, Inc. (SUNB) stock analysis
Close on Nov 11, 2026Market cap $34.14BP/E 26.5Yield 1.32%
StockData Score
Prices as of Nov 11, 2026How the score works
Weak7 of 30 checks passed
Sunbelt Rentals passes 7 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 1/6
- Dividend
- 2/6
What stands out
Return on capital over 10%
Return on invested capital was 13.5%, above the 10% that usually covers the cost of capital.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 44.2% of total debt.
Guidance raised
Sunbelt Rentals raised its FY 2027 Outlook Rental Revenue outlook on Jun 23, 2026.
Covered by earnings
Dividends take 35.0% of net income.
What to watch
Margin of safety under 20%
The price is 16.4% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $83.32 is above our fair value estimate of $71.58.
High debt
Debt is 115% of shareholders' equity, above the 40% we consider low.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.50; above 3 is the safe zone and below 1.8 the distress zone.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E above the industry
Sunbelt Rentals's P/E of 26.5 is above the Miscellaneous Equipment Rental and Leasing median of 19.8.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Sunbelt Rentals's price-to-book of 4.58 is above the Miscellaneous Equipment Rental and Leasing median of 2.93.
Trading above fair value
The share price of $83.32 is above our fair value estimate of $71.58.
Margin of safety under 20%
The price is 16.4% above fair value, so there is no margin of safety.
Growth1/6
Revenue growth over 3 years
Needs three years of positive revenue.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 3.4% over the last twelve months; the Miscellaneous Equipment Rental and Leasing median is 9.4%.
Guidance raised
Sunbelt Rentals raised its FY 2027 Outlook Rental Revenue outlook on Jun 23, 2026.
Gross margin slipping
Gross margin was 38.5% over the last twelve months, against 40.0% a year earlier.
Past performance3/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 13.5%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Sunbelt Rentals's return on equity of 17.3% is above the Miscellaneous Equipment Rental and Leasing median of 12.9%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin above the industry
Sunbelt Rentals's net margin of 11.9% is above the Miscellaneous Equipment Rental and Leasing median of 5.4%.
Financial health1/6
High debt
Debt is 115% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 44.2% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets don't cover short-term debts
Current assets are 0.94 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.50; above 3 is the safe zone and below 1.8 the distress zone.
Dividend2/6
Pays a dividend
Sunbelt Rentals paid dividends worth 1.3% of the share price over the last twelve months.
Yield below Treasuries
The 1.3% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; Sunbelt Rentals yields 1.3%.
Dividend stability
Fewer than five years of dividend history.
Covered by earnings
Dividends take 35.0% of net income.
Cash-flow cover
Needs dividends paid and free cash flow.
Fair value
How we estimate itOur estimate per share
$71.58
The share price is 16% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 19.8× | – | 19.8× | $62.51 | 40% |
| EV/EBITDA | 9.5× | – | 9.5× | $83.15 | 35% |
| P/B | 2.9× | – | 2.9× | $53.31 | 10% |
| Earnings power | 11.3% cost of equity | – | – | $80.98 | 15% |
| Fair value | $71.58 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Miscellaneous Equipment Rental and Leasing median 19.8
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $267.87M
- Value traded per 1% price move
- $179.44M
Downside
Medium risk
- Typical loss in a bad month
- 15.6%
- Volatility (annualized)
- 45%
- Sharpe ratio, 1 year
- 0.60
- Beta to the S&P 500 (5Y)
- 1.29
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2023 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +3.4% | – | – | – | |
| Gross profit | -0.7% | – | – | – | |
| Operating income | -12.7% | – | – | – | |
| Net income | -14.7% | – | – | – | |
| EPS, diluted | -11.3% | – | – | – | |
| Dividend per share | -12.0% | – | – | – |
Returns and balance sheet
4 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2023 | FY2023 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 17.4% | |
| Current ratio | – | – | 0.90 | |
| Debt to equity | – | – | 1.02 | |
| Net debt to EBITDA | – | – | 1.68× | |
| Diluted shares | – | – | 421M |
Cash use needs five years of cash flow figures
Sunbelt Rentals does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 11.9% | 0.50× | 2.91× | 17.4% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$1.33B
- Cash generatingOperating cash flow above zero$3.78B
- Return on assets improvedROA up on the prior year– → 6.0%
- Earnings backed by cashOperating cash flow above net income$3.78B vs $1.33B
- Less leverageLong-term debt to assets fell34.1% → 31.6%
- Better liquidityCurrent ratio rose1.30 → 0.90
- No dilutionShare count did not rise437M → 421M
- Gross margin improvedGross margin up on the prior year40.03% → 38.46%
- More efficientAsset turnover rose– → 0.51
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