United Rentals (URI) AI Stock Analysis

• Market Cap: $45.16B
• Dividend Yield: 1.03%
• Average Volume (3M): 461.87K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.66
• Revenue Growth: 7.20%
• EPS Growth: 4.56%
• Country: US
• Employees: 27,900
• Sector: Industrials
• Sector Strength: 87
• Industry: Rental & Leasing Services
• EPS (TTM): 8.86
• Shares Outstanding: 64,999,040
• 10 Day Avg. Volume: 380,842
• 30 Day Avg. Volume: 461,867
• PEG Ratio: 0.21
• Price to Book (P/B): 3.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.82
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 4.10
• Enterprise Value/Ebitda: 0.94
• 1Y Price Target: $738.09
• Price Target Upside: 6.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 77 Outperform
• Price Target: $789.00 ▲(13.55%Upside)

United Rentals' strong financial performance and positive earnings call insights are the primary drivers of its overall score. While technical analysis and valuation present some concerns, the company's strategic growth initiatives and robust cash flow position it well for future success despite existing challenges.

Positive Factors

Financial Performance

URI reported a solid Q1 EBITDA of $1.67bn, up 5% YoY, and reaffirmed its FY guide.

Innovation

The company is actively developing new products, with 27 currently in the pilot phase, showcasing its commitment to innovation.

Market Share

Management showcased its ability to drive outsized market share gains through leveraging the scale of its industry-leading fleet size and its differentiated one-stop-shop portfolio, including high-value niche Specialty offerings.

Negative Factors

GenRent Overhang

GenRent will be an overhang in 2025, with fleet growth and productivity being pressured.

Market Conditions

A softer supply/demand environment will also pressure GenRent gross margins, making it difficult to pass on fleet inflation costs to customers.

United Rentals Business Overview & Revenue Model

Company Description

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. The company sells used equipment through its sales force, brokers, website, directly to manufacturers, and at auctions. The company operates a network of 1,360 rental locations in the United States, Canada, Europe, Australia, and New Zealand. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.

How the Company Makes Money

United Rentals generates revenue primarily through the rental of equipment, which accounts for the majority of its income. The company leases a wide variety of equipment on both short-term and long-term contracts, catering to industries such as construction, manufacturing, and energy. Additionally, United Rentals offers complementary services that contribute to its earnings, including equipment sales, maintenance and repair services, and safety training programs. The company also benefits from strategic partnerships with equipment manufacturers and suppliers, which enhance its product offerings and operational efficiency. Furthermore, United Rentals continually invests in technology and innovation to improve customer service and operational processes, which supports its revenue growth.

United Rentals Financial Statement Overview

Summary

United Rentals presents a strong overall financial position with robust profitability metrics, efficient operations, and effective cash flow management. While the company shows healthy growth and stable capital structure, the relatively high debt levels and decline in free cash flow growth are areas to watch. Overall, United Rentals is well-positioned within the Rental & Leasing Services industry, with a proven track record of financial stability and operational efficiency.

Income Statement

United Rentals demonstrates a strong income statement with robust gross and net profit margins, indicating efficient operations and solid profitability. The TTM (Trailing-Twelve-Months) gross profit margin is 38.84%, and the net profit margin is 16.37%, both suggesting a well-managed cost structure. The revenue growth rate from 2024 to TTM is moderate at 1.53%, showing consistent expansion, although slightly lower than previous years. The EBIT margin of 25.79% and EBITDA margin of 37.10% also reflect strong operational efficiency. Overall, the income statement shows solid profitability with stable growth trends.

Balance Sheet

The balance sheet presents a solid equity base with a moderate equity ratio of 31.33% TTM, indicating a stable capital structure. The debt-to-equity ratio is relatively high at 1.59, suggesting the company is leveraging debt to fuel its operations, which could pose risks if market conditions change. Return on Equity (ROE) is strong at 29.02%, reflecting efficient use of equity capital to generate profits. Overall, the balance sheet points to a well-capitalized company, albeit with a notable reliance on debt.

Cash Flow

United Rentals exhibits strong cash flow management, with a healthy operating cash flow to net income ratio of 1.94 TTM, demonstrating robust cash generation from operations. The free cash flow to net income ratio is 0.54, indicating effective capital expenditure management. However, the free cash flow growth rate shows a decline of 66.97% from 2024 to TTM, which warrants monitoring. Despite this decline, the company maintains a solid cash position and effective cash utilization strategies.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.58B	15.35B	14.33B	11.64B	9.72B	8.53B
	Gross Profit
6.05B	6.15B	5.81B	5.00B	3.85B	3.18B
	EBIT
4.02B	4.07B	3.83B	3.23B	2.28B	1.80B
	EBITDA
6.42B	6.98B	6.63B	5.46B	2.64B	2.19B
	Net Income Common Stockholders
2.55B	2.58B	2.42B	2.10B	1.39B	890.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
542.00M	457.00M	363.00M	106.00M	144.00M	202.00M
	Total Assets
28.05B	28.16B	25.59B	24.18B	20.29B	17.87B
	Total Debt
13.99B	14.79B	12.66B	12.01B	10.31B	10.23B
	Net Debt
13.45B	14.33B	12.30B	11.91B	10.16B	10.03B
	Total Liabilities
19.26B	19.54B	17.46B	17.12B	14.30B	13.32B
	Stockholders Equity
8.79B	8.62B	8.13B	7.06B	5.99B	4.54B
Cash Flow		Free Cash Flow
639.00M	419.00M	634.00M	743.00M	491.00M	1.50B
	Operating Cash Flow
4.94B	4.55B	4.70B	4.43B	3.69B	2.66B
	Investing Cash Flow
-3.23B	-4.15B	-2.98B	-5.02B	-3.61B	-223.00M
	Financing Cash Flow
-1.58B	-274.00M	-1.47B	552.00M	-140.00M	-2.29B

United Rentals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 694.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For URI, the sentiment is Negative. The current price of 694.84 is below the 20-day moving average (MA) of 708.44, above the 50-day MA of 658.30, and below the 200-day MA of 724.22, indicating a neutral trend. The MACD of 10.61 indicates Positive momentum. The RSI at 49.90 is Neutral, neither overbought nor oversold. The STOCH value of 62.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for URI.

United Rentals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGRC	79 Outperform	$2.85B	11.79	22.80%	1.70%	7.31%	91.99%
URI	77 Outperform	$45.16B	17.99	30.17%	1.03%	7.20%	4.56%
R	71 Outperform	$6.09B	12.89	16.41%	2.20%	6.21%	47.05%
HRI	66 Neutral	$3.78B	25.39	9.60%	2.46%	8.34%	-63.02%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
HEES	56 Neutral	$3.47B	38.00	15.74%	1.16%	-3.52%	-46.60%
PONY	45 Neutral	$4.45B	―	-33.58%	―	4.27%	-120.11%

United Rentals Corporate Events

United Rentals Extends Receivables Purchase Agreement

On June 6, 2025, United Rentals, Inc. and its subsidiaries entered into an amendment to extend their receivables purchase agreement until June 24, 2026, with the possibility of further extensions. This amendment, which adds Reliant as a new purchaser, ensures that advances under the facility will continue to be reflected as debt, with receivables in the collateral pool as assets, impacting the company’s financial structure and maintaining its operational flexibility.

The most recent analyst rating on (URI) stock is a Hold with a $658.00 price target. To see the full list of analyst forecasts on United Rentals stock, see the URI Stock Forecast page.

United Rentals Holds Annual Meeting, Elects Board

On May 8, 2025, United Rentals held its Annual Meeting where stockholders voted on several key issues. They elected ten directors to the board, ratified Ernst & Young LLP as the public accounting firm for the fiscal year ending December 31, 2025, approved executive compensation on a non-binding basis, and rejected a proposal to improve shareholder written consent.

United Rentals Announces Q1 2025 Results and Buyback

On April 23, 2025, United Rentals announced its first quarter 2025 financial results, reaffirmed its full-year guidance, and introduced a new $1.5 billion share repurchase program. The company reported a total revenue of $3.719 billion, with a net income of $518 million and an adjusted EBITDA of $1.671 billion. Despite a decrease in net income margin, the company saw a 7.4% increase in rental revenue year-over-year, driven by demand across its end-markets and the impact of the Yak acquisition. United Rentals plans to repurchase $1.25 billion in shares in 2025, reflecting its strategy to capitalize on growth opportunities and differentiate from competitors.