One-glance verdict
Overvalued
$56.43 our estimate vs market $1,179.96
Wall Street consensus: $1,292.24 (2,190.0% higher than our fair-value estimate)
1991% above our estimate, beyond the bull case
Fundamentals snapshot
United Rentals, Inc.
URI · NYQ · Industrials · Rental & Leasing Services
Current price
$1,179.96
52-week range
$701.59 - $1,189.01
Market cap
$73.44B
Balance sheet
Stretched
5.55x Adequate
Net debt $15.71B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 7.6% last year.
- Reward Returns 30.6% on equity, ahead of 75% of its peers.
- Risk Stock trades 54.1% above its 5-year average P/E.
- Risk Net debt grew 25.5% over 3 years.
What this company does
United Rentals, Inc.
United Rentals rents out a huge variety of equipment, from basic tools and lifts to specialized gear for digging and temperature control, to businesses and even homeowners. Their main money comes from these rentals, plus some sales of used equipment and parts, which is important because it shows how much people and companies rely on them for their projects. This business model also means they have a fairly steady stream of income as people keep needing to rent equipment.
How the company got here
United Rentals was founded in 1997 with a vision to create a national network for renting construction equipment. The company grew rapidly through a series of strategic acquisitions, consolidating many smaller, regional rental businesses. This aggressive expansion allowed United Rentals to quickly establish a significant presence across the United States and Canada. A key turning point was its focus on integrating these acquired companies and standardizing operations, which helped create a more efficient and unified business. The company has since expanded its reach internationally and broadened its equipment offerings to become a comprehensive rental solutions provider.
What it actually does
United Rentals is essentially a giant tool shed for businesses that need equipment for short-term projects. Instead of buying expensive machinery like excavators, lifts, or generators, companies can rent them from United Rentals for as long as they need. This is particularly useful for construction sites, industrial maintenance, or even special events. The company provides a wide array of equipment, from basic tools to complex machinery, helping customers avoid the high costs and logistical challenges of owning and maintaining their own fleet. They also sell used equipment and provide maintenance services.
General Rentals
This is the largest part of United Rentals' business, focusing on renting out everyday construction and industrial equipment. Think of things like backhoes for digging, forklifts for moving materials, and scissor lifts for working at heights. Customers, who are typically construction companies, manufacturers, or even homeowners needing tools for a big project, rent these items for a daily, weekly, or monthly fee. This segment is the backbone of the company, providing the most common types of equipment needed for a wide variety of jobs.
Specialty
The Specialty segment offers more niche and complex equipment designed for specific needs. This includes safety equipment for digging trenches, ensuring workers don't get buried, as well as power generation and climate control equipment for large sites or events. They also rent out fluid management systems and temporary structures like mobile offices. This segment serves customers with specialized requirements, often on larger infrastructure or industrial projects, and represents a significant portion of United Rentals' overall business.
What management is betting on now
United Rentals' management is focused on leveraging its scale and expertise to capture growth in key areas. They are investing in technology to make renting equipment easier and more efficient for customers, such as through online platforms. A major strategic priority is expanding their specialty rental offerings, as these often provide higher returns and cater to growing industries like infrastructure and renewable energy. They are also committed to operational excellence, ensuring they can efficiently manage their vast fleet of equipment and provide reliable service to their customers across all their locations.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$4.89B
Net income
$920.00M
Diluted EPS
14.77
Operating cash flow
$3.42B
Free cash flow
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Sources
Revenue
$3.98B
Net income
$531.00M
Diluted EPS
8.43
Operating cash flow
$1.51B
Free cash flow
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Sources
Revenue
$4.21B
Net income
$653.00M
Diluted EPS
10.27
Operating cash flow
$1.26B
Free cash flow
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Sources
Revenue
$4.23B
Net income
$701.00M
Diluted EPS
10.91
Operating cash flow
$1.18B
Free cash flow
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Sources
Revenue
$3.94B
Net income
$622.00M
Diluted EPS
9.59
Operating cash flow
$1.33B
Free cash flow
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Sources
Revenue
$3.72B
Net income
$518.00M
Diluted EPS
7.91
Operating cash flow
$1.43B
Free cash flow
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Revenue
$4.09B
Net income
$689.00M
Diluted EPS
10.47
Operating cash flow
$1.05B
Free cash flow
$471.00M
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Sources
Is it cheap or expensive?
Fair value $56.43 vs current price $1,179.96
Wall Street consensus is the average analyst price target: $1,292.24 (2,190.0% higher than our fair-value estimate).
Our most-likely fair value is $56.43 a share — about 95.2% below today's price of $1,179.96, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $15.7B. Interest coverage 5.6x.
Net debt
$15.71B
Interest coverage
5.55x
United Rentals, Inc.'s profit covers its interest bill about 5.6 times over. which is stronger than every peer shown here.
Stretched
Worse cushion
Baseline
Better cushion
URI
BASELINE
United Rentals, Inc.
Total debt $15.87B Interest coverage 5.55x This is the baseline the peer rows are being compared against.
Total debt $9.63B Interest coverage 1.50x -73% vs URI Carries about 3.7x less debt cushion than URI.
Total debt $8.18B Interest coverage 2.74x -51% vs URI Carries about 2.0x less debt cushion than URI.
Total debt $12.48B Interest coverage 1.36x -75% vs URI Carries about 4.1x less debt cushion than URI.
What you should know
The case for and against URI
3 Rewards
3 Risks
Rewards
-
Revenue grew 7.6% last year.
-
Returns 30.6% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 54.1% above its 5-year average P/E.
-
Net debt grew 25.5% over 3 years.
-
Insider ownership is only 0.4% (peer median: 2.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
25.97x
Forward P/E
19.37x
P/B
7.54x
P/S
4.20x
EV/EBITDA
17.39x
PEG ratio
1.34x
Profitability
How much profit each dollar creates
Gross margin
39.2%
Operating margin
29.2%
Net margin
16.3%
ROE
30.6%
ROA
9.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.64x
Current ratio
0.80x
Quick ratio
0.65x
Total debt
$15.87B
Total cash
$153.00M
Growth
How the business has been compounding
Revenue TTM
$17.32B
Revenue 5Y CAGR
13.5%
EPS TTM
45.43
EPS 5Y CAGR
9.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$7.37B
Free CF TTM
$416.00M
FCF margin
2.4%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
17.0%
Last ex-div date
2026-11-10