Explaining The Rally In United Rentals Stock

November 14th, 2019 by Trefis Team

United Rentals (NYSE: URI), the world’s largest equipment rental company, has seen its stock soar by close to 30% over the last month. The rally was driven by strong Q3 results, with adjusted EPS coming in at $5.96, about $0.30 ahead of consensus and revenues also showing strong growth, rising by 17.5% YoY to $2.49 billion. Demand from the construction market – which includes non-residential, infrastructure and residential – has remained strong with the Non-residential segment in particular posting strong results, driven in part by higher market share. The company’s used equipment sales revenue was also up 41%year-over-year.

We ‘step back’ from these recent swings to review United Rentals’ performance over the last few years, as a context for what might come next. Our Interactive dashboard, What’s Driving The Rally In United Rentals Stock?, reviews the near term reasons and the big picture.

The context for the last few years:
 
A closer look At United Rentals’ Total Revenues over the last few years and the outlook

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Total Revenues for United Rentals significantly increased from $6.64 Bil in 2017 to $8.05 Bil in 2018; an increase of 21.2%.

This compares with Total Revenues growth of:

  • 2.32% in 2015
  • -0.946% in 2016
  • 15.3% in 2017

We expect Total Revenues growth to be 15.6% in 2019.

A closer look At United Rentals’ Total Expenses over the last few years and the outlook

Total Expense for United Rentals significantly increased from $5.59 Bil in 2017 to $6.57 Bil in 2018; an increase of 17.5%.

This compares with Total Expense growth of:

  • 0.393% in 2015
  • -0.0206% in 2016
  • 15.2% in 2017

We expect Total Expense growth to be 15.8% in 2019.

How does United Rentals Revenue Growth compare with rivals?

For more details on how United Rentals Revenue Growth compares to Herc Holdings & Xylem’s, view our interactive dashboard analysis.

How has United Rentals’ EBT trended?

EBT for United Rentals increased substantially by 40.8% from $1.05 Bil in 2017 to $1.48 Bil in 2018.

We expect EBT to increase by 14.5% to $1.70 Bil in 2019.

How has United Rentals’ Net Income and EPS trended?

For more information on United Rentals’ Net Income and EPS, view our interactive dashboard analysis.

 

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