United Rentals Stock To $554?
United Rentals (URI) stock has fallen 13% during the past day, and is currently trading at $787.04. Our multi-factor assessment suggests that it may be time to sell URI stock. We have, overall, a pessimistic view of the stock, and a price of $554 may not be out of reach. We believe there is a near-equal mix of good and bad in URI stock given its overall Moderate operating performance and financial condition. But keeping in mind its High valuation, we think that the stock is Unattractive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | High |
| What you get: | |
| Growth | Moderate |
| Profitability | Strong |
| Financial Stability | Moderate |
| Downturn Resilience | Moderate |
| Operating Performance | Moderate |
| Stock Opinion | Unattractive |
Instead of stock picking, it makes more sense to build a portfolio that is designed to win across cycles. Our numbers show that High Quality Portfolio has turned stock-picking uncertainty into market-beating consistency.
Let’s get into details of each of the assessed factors but before that, for quick background: With $50 Bil in market cap, United Rentals provides general and specialty construction equipment rentals, including trench safety products, through a network of 1,345 rental locations as of January 2022.
- Intuit Stock Now 28% Cheaper, Time To Buy
- A Decade of Rewards: $68 Bil From Union Pacific Stock
- Mastercard Stock Pays Out $64 Bil – Investors Take Note
- Las Vegas Sands Stock Hits Key Support – Buying Opportunity?
- Adobe Stock Looks Undervalued, Ready to Move Up?
- With Strong Cash Flow, Roper Technologies Stock Poised to Rise?
[1] Valuation Looks High
| URI | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 3.1 | 3.4 |
| Price-to-Earnings Ratio | 20.1 | 24.1 |
| Price-to-Free Cash Flow Ratio | 75.7 | 21.4 |
This table highlights how URI is valued vs broader market. For more details see: URI Valuation Ratios
[2] Growth Is Moderate
- United Rentals has seen its top line grow at an average rate of 11.7% over the last 3 years
- Its revenues have grown 4.9% from $15 Bil to $16 Bil in the last 12 months
- Also, its quarterly revenues grew 2.8% to $4.2 Bil in the most recent quarter from $4.1 Bil a year ago.
| URI | S&P 500 | |
|---|---|---|
| 3-Year Average | 11.7% | 5.6% |
| Latest Twelve Months* | 4.9% | 6.2% |
| Most Recent Quarter (YoY)* | 2.8% | 7.3% |
This table highlights how URI is growing vs broader market. For more details see: URI Revenue Comparison
[3] Profitability Appears Strong
- URI last 12 month operating income was $4.0 Bil representing operating margin of 24.7%
- With cash flow margin of 32.2%, it generated nearly $5.2 Bil in operating cash flow over this period
- For the same period, URI generated nearly $2.5 Bil in net income, suggesting net margin of about 15.5%
| URI | S&P 500 | |
|---|---|---|
| Current Operating Margin | 24.7% | 18.8% |
| Current OCF Margin | 32.2% | 20.5% |
| Current Net Income Margin | 15.5% | 13.1% |
This table highlights how URI profitability vs broader market. For more details see: URI Operating Income Comparison
[4] Financial Stability Looks Moderate
- URI Debt was $16 Bil at the end of the most recent quarter, while its current Market Cap is $50 Bil. This implies Debt-to-Equity Ratio of 31.3%
- URI Cash (including cash equivalents) makes up $459 Mil of $30 Bil in total Assets. This yields a Cash-to-Assets Ratio of 1.5%
| URI | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 31.3% | 19.5% |
| Current Cash-to-Assets Ratio | 1.5% | 7.2% |
[5] Downturn Resilience Is Moderate
URI saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- URI stock fell 40.0% from a high of $392.79 on 8 November 2021 to $235.84 on 23 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 24 January 2023
- Since then, the stock increased to a high of $1,020.00 on 15 October 2025 , and currently trades at $787.04
| URI | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -40.0% | -25.4% |
| Time to Full Recovery | 215 days | 464 days |
2020 Covid Pandemic
- URI stock fell 58.7% from a high of $168.65 on 2 January 2020 to $69.59 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 5 August 2020
| URI | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.7% | -33.9% |
| Time to Full Recovery | 140 days | 148 days |
2008 Global Financial Crisis
- URI stock fell 91.3% from a high of $34.70 on 21 May 2007 to $3.03 on 9 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 January 2012
| URI | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -91.3% | -56.8% |
| Time to Full Recovery | 1,045 days | 1,480 days |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read URI Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.