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United Rentals
(NYSE:URI)
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Rating:75Outperform
Price Target:
$1,203.00
â–²(13.74% Upside)
Action:Reiterated
Date:10/22/26
The score is driven primarily by solid underlying financial performance (strong margins and operating cash flow) and a notably upbeat earnings call with raised guidance and strong free cash flow outlook. Offsetting factors are leverage and weaker recent free-cash-flow conversion, plus a valuation profile (P/E ~23.6, ~0.72% yield) that is not especially cheap. Technicals are supportive but largely neutral on momentum.
Positive Factors
Raised Growth Outlook
The higher revenue outlook, following record quarterly rental revenue and broad project demand, indicates strong customer activity and expanding fleet deployment. Sustained growth across construction, infrastructure, power and data centers can support scale benefits and reinforce United Rentals’ market position.
Negative Factors
Elevated Leverage
United Rentals remains financially leveraged, which can amplify the impact of weaker rental demand or less favorable refinancing conditions. Debt obligations may compete with fleet investment, shareholder returns and other uses of cash if operating conditions soften.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised Growth Outlook
The higher revenue outlook, following record quarterly rental revenue and broad project demand, indicates strong customer activity and expanding fleet deployment. Sustained growth across construction, infrastructure, power and data centers can support scale benefits and reinforce United Rentals’ market position.
Read all positive factors
United Rentals Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, showing which areas are driving growth and where there might be opportunities or challenges.
Breaks down revenue across different business segments, showing which areas are driving growth and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyUnited Rentals (URI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$64.97B
Dividend Yield0.72%
Average Volume (3M)499.89K
Price to Earnings (P/E)23.6
Beta (1Y)1.21
Revenue Growth6.88%
EPS Growth7.64%
CountryUS
Employees28,500
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)41.46
Shares Outstanding62,242,490
10 Day Avg. Volume514,548
30 Day Avg. Volume499,892
Financial Highlights & Ratios
PEG Ratio-73.78
Price to Book (P/B)5.81
Price to Sales (P/S)3.24
P/FCF Ratio78.73
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue4.64
Enterprise Value/Gross Profit12.50
Enterprise Value/Ebitda10.48
Forecast
1Y Price Target
$1,296.15Price Target Upside22.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)49.58
Revenue Forecast (FY)$17.76B
United Rentals Business Overview & Revenue Model
Company Description
United Rentals, Inc., founded in 1997 and headquartered in Stamford, Connecticut, functions as a prominent equipment rental firm through its various subsidiaries. The company's operations are divided into two main divisions: General Rentals and Sp...
How the Company Makes Money
United Rentals primarily makes money by renting equipment from its owned fleet to customers on a time-and-use basis (e.g., daily, weekly, monthly rentals), generating recurring revenue as the same assets are rented across multiple jobs over their ...
United Rentals Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call was strongly positive. United Rentals reported quarterly records for revenue, rental revenue, adjusted EBITDA, and adjusted EPS; raised revenue, EBITDA, and CapEx guidance; maintained strong free cash flow guidance; and highlighted broad project demand, operational efficiency, a healthy balance sheet, and an investment-grade credit upgrade. The main challenges were persistent inflation, fuel and supplier cost pressures, lower-margin ancillary and re-rent mix, stable rather than robust local markets, and weakness in certain end markets, but management stated that these factors were being offset through pricing, productivity, growth leverage, and disciplined execution.Positive Updates
Record Third-Quarter Revenue and Rental Revenue
Total revenue grew 16% year-over-year to $4.9 billion, while rental revenue increased 17.8% to over $4.3 billion; both were quarterly records.
Negative Updates
Inflationary Cost Pressures Remain
Management said inflation is real, not benign, and not deflationary. Above-trend merit increases, supplier pricing for R&M parts, diesel, and freight rates remain cost pressures, although the company said productivity gains have offset them so far.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Third-Quarter Revenue and Rental Revenue
Total revenue grew 16% year-over-year to $4.9 billion, while rental revenue increased 17.8% to over $4.3 billion; both were quarterly records.
Read all positive updates
Company Guidance
United Rentals expects total revenue in the range of $18 billion-$18.2 billion, used sales at around $1.45 billion, full year total revenue growth ex used of better than 13% versus the initial 2026 guidance of closer to 6%, adjusted EBITDA in the range of $8.3 billion-$8.4 billion, and EBITDA margins over 46%, all at the midpoint; excluding the benefit of the H&E termination fee last year and the gain on sale of the scaffolding business this year, this implies a roughly 70 basis point improvement in full year EBITDA margin compared to the goal initially shared in January. Gross CapEx guidance is in the range of $5.2 billion-$5.5 billion, net CapEx is $3.75 billion-$4.05 billion, and free cash flow is in the range of $2.15 billion-$2.45 billion. The company still intends to repurchase $1.5 billion of shares in 2026, which combined with its dividend will return roughly $2 billion to shareholders this year, equating to approximately $32 per share, or a return of capital yield of over 3% based on the current share price.United Rentals Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.83B | 16.10B | 15.35B | 14.33B | 11.64B | 9.72B |
| Gross Profit | 6.24B | 5.71B | 5.71B | 5.38B | 4.63B | 3.50B |
| EBITDA | 7.45B | 7.16B | 6.98B | 6.63B | 5.46B | 4.25B |
| Net Income | 2.64B | 2.49B | 2.58B | 2.42B | 2.10B | 1.39B |
Balance Sheet | ||||||
| Total Assets | 31.31B | 29.87B | 28.16B | 25.59B | 24.18B | 20.29B |
| Cash, Cash Equivalents and Short-Term Investments | 112.00M | 459.00M | 457.00M | 363.00M | 106.00M | 144.00M |
| Total Debt | 15.38B | 16.48B | 14.79B | 12.66B | 12.22B | 10.51B |
| Total Liabilities | 22.09B | 20.90B | 19.54B | 17.46B | 17.12B | 14.30B |
| Stockholders Equity | 9.22B | 8.97B | 8.62B | 8.13B | 7.06B | 5.99B |
Cash Flow | ||||||
| Free Cash Flow | 632.00M | 662.00M | 419.00M | 634.00M | 743.00M | 491.00M |
| Operating Cash Flow | 5.74B | 5.19B | 4.55B | 4.70B | 4.43B | 3.69B |
| Investing Cash Flow | -4.27B | -3.37B | -4.15B | -2.98B | -5.02B | -3.61B |
| Financing Cash Flow | -1.90B | -1.84B | -274.00M | -1.47B | 552.00M | -140.00M |
United Rentals Technical Analysis
Positive
1057.66
Price Trends
1046.23
Positive
1065.69
Positive
960.46
Positive
Market Momentum
2.41
Negative
55.97
Neutral
56.73
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 1057.66 is above the 20-day moving average (MA) of 1045.47, above the 50-day MA of 1046.23, and above the 200-day MA of 960.46, indicating a bullish trend. The MACD of 2.41 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 56.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for URI.
United Rentals Risk Analysis
United Rentals disclosed 40 risk factors in its most recent earnings report. United Rentals reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
United Rentals Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $64.97B | 23.59 | 31.01% | 0.72% | 6.88% | 7.64% | |
71 Outperform | $2.74B | 18.37 | 12.44% | 1.72% | -0.92% | -39.51% | |
65 Neutral | $9.10B | 19.51 | 16.70% | 1.56% | 1.12% | 3.84% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $5.80B | 16.16 | 13.35% | 1.58% | 22.81% | 15.43% | |
52 Neutral | $3.00B | -44.78 | -7.45% | 1.69% | -2.51% | -162.51% | |
49 Neutral | $4.19B | 89.61 | 2.56% | 2.13% | 28.50% | 67.75% |
* Industrials Sector Average
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United Rentals
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17.87%
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United Rentals Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
United Rentals posts record Q3 results, boosts outlook
Positive
Oct 21, 2026
United Rentals, Inc. is a leading U.S. equipment rental provider, offering general and specialty rental services to construction, industrial and infrastructure customers through a broad national footprint. Its one-stop-shop model, sizable fleet, t...
Business Operations and Strategy
United Rentals Executives Present at Morgan Stanley Conference
Positive
Sep 8, 2026
United Rentals, Inc. announced on September 8, 2026, that members of its executive management team will take part in the Morgan Stanley 14th Annual Laguna Conference on Tuesday, September 15, 2026. The agenda includes a presentation by chief execu...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
United Rentals Posts Record Q2 Results, Raises Guidance
Positive
Jul 22, 2026
United Rentals reported record second-quarter 2026 results on July 22, 2026, with total revenue reaching $4.41 billion and rental revenue climbing 12.7% year-over-year to a record $3.849 billion, driven by higher fleet productivity and increased e...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.