United Rentals, Inc. (URI)
Valuation Overview•Is United Rentals, Inc. Overvalued or Undervalued?
Commands a peer premium multiple, but this multiple is justified by a strong intrinsic cash flow value.
Moderate quality score of 59/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
URI demonstrates strong business quality with robust profitability and healthy margins. This is paired with a moderately leveraged but stable balance sheet.
The company demonstrates solid revenue growth (11.4% 3Y CAGR) paired with robust earnings compounding (9.2% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 24.7% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $4.0B | +4.9% | +11.4% | +13.5% | +10.7% | |
| EBITDA | $1.7B | — | +9.1% | — | — | |
| Net Income | $531.0M | -3.1% | +5.8% | — | +15.6% | |
| EPS (Diluted) | $8.35 | -0.2% | +9.2% | +25.9% | +20.3% | |
| Free Cash Flow | $1.5B | +58.0% | -3.8% | -15.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 36.3% | 36.7% | 37.2% | 36.8% |
| Operating Margin | 24.7% | 26.0% | 25.9% | 24.9% |
| Net Margin | 15.3% | 16.4% | 16.3% | 14.8% |
| FCF Margin | 9.1% | 3.8% | 4.5% | 7.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $8.95 | $9.71 | +8.5% | ||
| Q1'26 | $11.79 | $11.09 | -5.9% | ||
| Q4'25 | $12.29 | $11.70 | -4.8% | ||
| Q3'25 | $10.51 | $10.47 | -0.4% | ||
| Q2'25 | $8.78 | $8.86 | +0.9% | ||
| Q1'25 | $11.68 | $11.59 | -0.8% | ||
| Q4'24 | $12.48 | $11.80 | -5.4% | ||
| Q3'24 | $10.54 | $10.70 | +1.5% |
Total return is +55.2% (1Y), outperforming the benchmark by +30.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +27.9% | +18.6% | — |
| 1Y | +55.2% | +30.2% | +1.1% |
| 3YCAGR | +39.2% | +18.5% | +5.1% |
| 5YCAGR | +30.7% | +17.1% | +8.1% |
| 10YCAGR | +31.9% | +18.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about United Rentals, Inc. (URI) valuation, health, and returns.
United Rentals, Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. undervalued (implying +18.1% upside to DCF intrinsic value of $1271.25)
United Rentals, Inc. has multiple valuation anchors: DCF Intrinsic Value: $1271.25 | Peer Relative Fair Value: $999.04 | Wall Street Analyst Target: $1074.36 (implying -0.2% upside). A convergence of these signals offers higher conviction.
United Rentals, Inc. displays fair financial health with a composite quality score of 59/100, supported by a Altman Z-Score of 3.0 (grey zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 12.4%.
United Rentals, Inc. pays a 0.7% dividend yield, covered by a 19% payout ratio with 3 years of growth, supplemented by a 2.9% buyback yield.
United Rentals, Inc.'s current growth trajectory is Decelerating. The company achieved +4.9% 1Y revenue growth and -0.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +11.4%.
Wall Street consensus is Buy based on 40 analysts, beating EPS expectations in 58% of recent quarters with a 1-quarter streak. The consensus price target represents a -0.2% change from current levels.
Investment risks for United Rentals, Inc. include: -30.3% 1-year max drawdown. Volatility risk is characterized by a beta of 1.11x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.