United Rentals, Inc. (URI) stock analysis
Close on Nov 13, 2026Market cap $69.63BP/E 24.7Yield 0.64%
StockData Score
Prices as of Nov 13, 2026How the score works
Mixed14 of 30 checks passed
United Rentals passes 14 of the 30 checks behind our score; 3 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
- 3/6
- Past performance
- 6/6
- Financial health
- 3/6
- Dividend
- 2/6
What stands out
Return on equity over 15%
Return on equity was 30.6% over the last twelve months and averaged 29.9% over five years.
Return on capital over 10%
Return on invested capital was 14.3%, above the 10% that usually covers the cost of capital.
Earnings grew over 5 years
Net income grew 22.9% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 11.4% a year over the last three fiscal years.
What to watch
Margin of safety under 20%
The price is 47.2% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $1124.56 is above our fair value estimate of $763.80.
High debt
Debt is 151% of shareholders' equity, above the 40% we consider low.
EPS growing under 10% a year
Diluted EPS grew 9.2% a year over the last three fiscal years.
Valuation0/6
P/E above its 5-year median
United Rentals's P/E of 24.7 is above its own 5-year median of 18.4.
P/E above the industry
United Rentals's P/E of 24.7 is above the Miscellaneous Equipment Rental and Leasing median of 22.3.
EV/EBITDA above its 5-year median
United Rentals's EV/EBITDA of 17.1 is above its 5-year median of 13.1.
P/B above the industry
United Rentals's price-to-book of 7.18 is above the Miscellaneous Equipment Rental and Leasing median of 2.79.
Trading above fair value
The share price of $1124.56 is above our fair value estimate of $763.80.
Margin of safety under 20%
The price is 47.2% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 11.4% a year over the last three fiscal years.
EPS growing under 10% a year
Diluted EPS grew 9.2% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 12.9% over the last twelve months, against a 5-year average of 22.9% a year.
Growing slower than the industry
Revenue grew 9.4% over the last twelve months; the Miscellaneous Equipment Rental and Leasing median is 9.4%.
Guidance raised
United Rentals raised its 2026 Net cash provided by operating activities outlook on Jul 22, 2026.
Gross margin improving
Gross margin was 39.1% over the last twelve months, against 38.7% a year earlier.
Past performance6/6
Return on equity over 15%
Return on equity was 30.6% over the last twelve months and averaged 29.9% over five years.
Return on capital over 10%
Return on invested capital was 14.3%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
United Rentals's return on equity of 30.6% is above the Miscellaneous Equipment Rental and Leasing median of 12.9%.
Earnings grew over 5 years
Net income grew 22.9% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 16.3% over the last twelve months, against a 5-year average of 16.3%.
Net margin above the industry
United Rentals's net margin of 16.3% is above the Miscellaneous Equipment Rental and Leasing median of 4.0%.
Financial health3/6
High debt
Debt is 151% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 213% five years ago to 151%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 42.2% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets don't cover short-term debts
Current assets are 0.80 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.51; above 3 is the safe zone and below 1.8 the distress zone.
Dividend2/6
Pays a dividend
United Rentals paid dividends worth 0.5% of the share price over the last twelve months.
Yield below Treasuries
The 0.5% yield is below the 4.7% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; United Rentals yields 0.5%.
Dividend stability
Fewer than five years of dividend history.
Covered by earnings
Dividends take 17.0% of net income.
Cash-flow cover
Needs dividends paid and free cash flow.
Fair value
How we estimate itOur estimate per share
$763.80
The share price is 47% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 20.3× | 18.4× | 22.3× | $924.97 | 44% |
| EV/EBITDA | 11.2× | 13.1× | 9.2× | $652.79 | 39% |
| Earnings power | 12.3% cost of equity | – | – | $593.04 | 17% |
| Fair value | $763.80 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 18.4
- Miscellaneous Equipment Rental and Leasing median 22.3
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
- $585.76M
- Value traded per 1% price move
- $297.69M
Downside
Medium risk
- Typical loss in a bad month
- 16.7%
- Volatility (annualized)
- 45%
- Sharpe ratio, 1 year
- 0.58
- Beta to the S&P 500 (5Y)
- 1.44
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +4.9% | +11.4% | +13.5% | +10.7% | |
| Gross profit | -0.1% | +7.1% | +14.1% | +9.5% | |
| Operating income | -2.3% | +7.1% | +17.2% | +10.1% | |
| Net income | -3.1% | +5.8% | +22.9% | +15.6% | |
| EPS, diluted | -0.2% | +9.2% | +25.9% | +20.3% | |
| Dividend per share | +9.8% | – | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 36.2% | 21.3% | 28.4% | |
| Return on assets | 4.7% | 4.8% | 8.6% | |
| Current ratio | 1.15 | 1.07 | 0.94 | |
| Debt to equity | 4.73 | 2.13 | 1.59 | |
| Net debt to EBITDA | 4.48× | 4.33× | 3.12× | |
| Inventory turnover | 49.0× | 43.6× | 45.3× | |
| Capex to revenue | 1.6% | 13.6% | – | |
| Diluted shares | 88M | 73M | 65M |
Cash use needs five years of cash flow figures
United 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 |
|---|---|---|---|---|
| FY2025 | 15.5% | 0.55× | 3.30× | 28.4% |
| FY2024 | 16.8% | 0.57× | 3.21× | 30.7% |
| FY2023 | 16.9% | 0.58× | 3.28× | 31.9% |
| FY2022 | 18.1% | 0.52× | 3.41× | 32.3% |
| FY2021 | 14.3% | 0.51× | 3.62× | 26.3% |
| FY2020 | 10.4% | 0.46× | 4.40× | 21.3% |
| FY2019 | 12.6% | 0.50× | 5.13× | 32.5% |
| FY2018 | 13.6% | 0.49× | 5.09× | 33.7% |
| FY2017 | 20.3% | 0.49× | 5.68× | 56.6% |
| FY2016 | 9.8% | 0.48× | 7.71× | 36.2% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$2.49B
- Cash generatingOperating cash flow above zero$5.19B
- Return on assets improvedROA up on the prior year10.1% → 8.9%
- Earnings backed by cashOperating cash flow above net income$5.19B vs $2.49B
- Less leverageLong-term debt to assets fell43.4% → 42.4%
- Better liquidityCurrent ratio rose0.98 → 0.94
- No dilutionShare count did not rise67M → 65M
- Gross margin improvedGross margin up on the prior year40.08% → 38.16%
- More efficientAsset turnover rose0.60 → 0.57
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