United Rentals Inc (URI, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $649.99, United Rentals Inc has witnessed a daily loss of 0.25%, marked against a three-month change of 63.81%. A thorough analysis, underlined by the GF Score, suggests that United Rentals Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, value, and momentum. These aspects have been closely correlated to the long-term performances of stocks, as determined by backtesting from 2006 to 2021. Stocks with higher GF Scores generally yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance.
- Financial strength rank: 5/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
United Rentals Inc's GF Score of 92 out of 100 reflects its strong profitability and growth ranks, while its financial strength and value ranks suggest areas for potential improvement. The high momentum rank indicates a positive trend in the stock's performance.
Understanding United Rentals Inc's Business
United Rentals Inc, with a market cap of $43.67 billion and sales of $14.33 billion, is the world's largest equipment rental company. It has a commanding 17% market share in the United States and Canada within a highly fragmented industry. The company serves general industrial, commercial construction, and residential construction markets. Since its public debut in 1997, United Rentals Inc has expanded its fleet size to $21 billion through organic growth and hundreds of acquisitions, offering a wide range of specialty equipment for various rental durations.
Profitability Rank Breakdown
The Profitability Rank of United Rentals Inc is a testament to its efficiency in generating profits. The company's Operating Margin has shown a notable increase over the past five years, with the latest figure standing at 26.9%. This upward trend is mirrored in its Gross Margin, which has also consistently risen, indicating an enhanced ability to convert revenue into profit. The company's Predictability Rank of 5 stars further solidifies its reputation for reliable performance.
Growth Rank Breakdown
United Rentals Inc's high Growth Rank reflects its dedication to business expansion. The company's 3-Year Revenue Growth Rate of 21.3% surpasses 68.85% of its peers in the Business Services industry. Additionally, its EBITDA has seen significant growth, with a three-year growth rate of 22.8 and a five-year rate of 15.9, highlighting United Rentals Inc's ability to sustain growth and profitability.
Next Steps
Considering United Rentals Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking to capitalize on such robust financial health and market leadership may find United Rentals Inc an attractive option. The company's consistent operational performance and strategic market positioning suggest a promising trajectory for future growth and returns.
GuruFocus Premium members can discover more companies with strong GF Scores using the following screener link: GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
