Sunbelt Rentals Holdings Inc AI Stock Analysis
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Sunbelt Rentals Holdings Inc (SUNB) AI Stock Analysis
Sunbelt Rentals Holdings Inc
(NYSE:SUNB)
SUNB scores well primarily on strong cash generation and solid profitability, supported by a very constructive earnings update including raised FY2027 guidance. The score is held back by meaningful leverage and currently mixed-to-weak technical momentum (negative MACD and price below key moving averages), with valuation only moderate at ~22x earnings and a low ~1% yield.
Sunbelt Rentals Holdings Inc (SUNB) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $33.68B
- Dividend Yield
- 1.73%
- Average Volume (3M)
- 5.04M
- Price to Earnings (P/E)
- 24.8
- Beta (1Y)
- 1.37
- Revenue Growth
- ―
- EPS Growth
- ―
- Country
- US
- Employees
- 26,016
- Sector
- General
- Sector Strength
- 55
- Industry
- Rental & Leasing Services
Sunbelt Rentals Holdings Inc Business Overview & Revenue Model
Company Description
Sunbelt Rentals Holdings Inc. operates as a prominent equipment leasing firm, furnishing an extensive array of tools, various machinery, and customized engineering solutions. Its clientele spans diverse sectors including construction, industrial appl...
How the Company Makes Money
Sunbelt Rentals primarily makes money by renting equipment to customers for defined rental periods (e.g., daily, weekly, or monthly), generating recurring rental revenue based on equipment type, utilization, and time on rent. Revenue is also generate...
Sunbelt Rentals Holdings Inc Earnings Call Summary
The call was strongly positive, with record first-quarter revenue, operating profit and EPS, broad-based demand, improving rates and utilization, strong Specialty growth, a raised fiscal 2027 outlook, and continued expansion opportunities. The main negatives were lower adjusted EBITDA margins, lower used-equipment sales, modest quarterly free cash flow, fuel-cost pressure and limited OEM capacity for certain high-demand equipment categories. Management remained confident in the business trajectory and long-term growth opportunities.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
For fiscal 2027, Sunbelt Rentals raised guidance to total revenue growth between 6% and 9%, rental revenue growth between 7% and 10%, adjusted EBITDA of between $4.92 billion and $5.12 billion, with full year margins expected to be broadly consistent with the prior year, gross capital expenditure guidance between $2.75 billion to $3.15 billion, and net rental capital expenditure guidance between $2.4 billion and $2.8 billion; the company continues to expect strong free cash flow generation throughout the year, expects to open approximately 55 greenfield locations, anticipates depreciation to grow compared to the 2.5% as it progresses sequentially through the quarter, expects time utilization to be more stable as it goes through the year rather than show significant upside, and said that continued acceleration in the rate environment would represent upside to the guide.
Sunbelt Rentals Holdings Inc Financial Statement Overview
Summary
Overall fundamentals are solid: strong profitability (TTM gross margin ~56.6%, operating margin ~15.7%, net margin ~11.8%) and very strong cash generation (TTM OCF ~$4.03B; FCF ~$3.69B; OCF ~1.53x net income). The main offset is a leveraged balance sheet (debt ~$11.1B vs equity ~$7.45B; ~1.37x) and evidence of growth/margin normalization versus FY2023–FY2025.
Income Statement
78PositiveBalance Sheet
67PositiveCash Flow
83Very Positive| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.47B | 11.15B | 10.79B | 10.86B | 9.67B | 7.96B |
| Gross Profit | 5.12B | 4.29B | 9.50B | 9.65B | 8.56B | 7.02B |
| EBITDA | 4.09B | 4.50B | 5.00B | 4.89B | 4.41B | 3.56B |
| Net Income | 1.38B | 1.32B | 1.51B | 1.60B | 1.62B | 1.25B |
Balance Sheet | ||||||
| Total Assets | 23.61B | 22.27B | 21.69B | 21.65B | 18.73B | 15.29B |
| Cash, Cash Equivalents and Short-Term Investments | 32.00M | 29.00M | 21.00M | 20.80M | 29.90M | 15.30M |
| Total Debt | 12.68B | 10.16B | 10.35B | 10.68B | 8.99B | 7.18B |
| Total Liabilities | 16.17B | 14.86B | 14.02B | 14.57B | 12.72B | 10.26B |
| Stockholders Equity | 7.45B | 7.41B | 7.67B | 7.08B | 6.01B | 5.03B |
Cash Flow | ||||||
| Free Cash Flow | 3.69B | 3.43B | 1.72B | 169.00M | 490.10M | 1.10B |
| Operating Cash Flow | 4.03B | 3.78B | 2.17B | 854.60M | 1.00B | 1.50B |
| Investing Cash Flow | -3.24B | -1.93B | -541.80M | -1.53B | -1.59B | -1.69B |
| Financing Cash Flow | -773.70M | -1.85B | -1.63B | 663.20M | 609.30M | 181.50M |
Sunbelt Rentals Holdings Inc Peers Comparison
Overall Rating
- SUNB74Outperform
IX70Outperform
Financial Indicators
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SUNB | Sunbelt Rentals Holdings Inc | 82.20 | 9.47 | 13.01% | |
| IX | Orix Corp Ads | 34.39 | 8.78 | 34.28% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Sep 15, 2026