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 $699.27, United Rentals Inc has witnessed a daily gain of 0.82%, marked against a three-month change of 25.84%. 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 using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- 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 signals the highest outperformance potential, with particularly high ranks in profitability and growth, and a solid momentum rank. The GF Value rank is a bit lower, indicating the stock might be overvalued at the current price.
Understanding United Rentals Inc's Business
United Rentals Inc, with a market cap of $46.99 billion and sales of $14.33 billion, is the world's largest equipment rental company. It operates primarily in the United States and Canada, holding approximately 15% market share in a highly fragmented market. The company caters to general industrial, commercial construction, and residential construction end 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 periods.
Profitability Rank Breakdown
The Profitability Rank of United Rentals Inc is exemplary, with an Operating Margin that has increased to 26.9% in 2023 from 23.22% in 2019. This growth in operating margin over the past five years demonstrates the company's efficiency in managing its expenses relative to its revenue.
Additionally, United Rentals Inc's Gross Margin has also shown a consistent upward trend, indicating an increasing ability to convert sales into profits. The company's Predictability Rank of 5 stars reflects its stable earnings and operational performance, which is a positive sign for investors.
Growth Rank Breakdown
United Rentals Inc's high Growth Rank reflects its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 21.3% outperforms 83.72% of its peers in the Business Services industry. The significant increase in EBITDA over the past few years further emphasizes United Rentals Inc's growth capabilities.
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 looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen. With its solid market position and consistent performance, United Rentals Inc presents a compelling case for those seeking growth and profitability in their investment portfolio.
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.
