United Rentals Inc (URI, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $734.25, United Rentals Inc has experienced a daily gain of 3.03% and a notable three-month increase of 16.65%. A detailed analysis, supported by the GF Score, indicates that United Rentals Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. United Rentals Inc boasts a GF Score of 92, indicating a strong potential for market outperformance.
- Financial strength rank: 5/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 10/10
Understanding United Rentals Inc's Business
United Rentals Inc, with a market cap of $48.56 billion and annual sales of $14.75 billion, is the world's largest equipment rental company. It primarily operates in the United States and Canada, holding about 15% market share in a highly fragmented industry. The company serves various end markets, including general industrial, commercial construction, and residential construction. Since its public debut in 1997, United Rentals has expanded its offerings through organic growth and hundreds of acquisitions, now boasting a fleet size valued at $21 billion.
Profitability Rank Breakdown
United Rentals Inc's Operating Margin has shown impressive growth over the past five years, increasing from 23.22% in 2019 to 26.90% in 2023. Similarly, the company's Gross Margin has consistently risen, demonstrating an enhanced ability to convert revenue into profit. This trend highlights United Rentals Inc's growing efficiency and profitability, which is further underscored by its Predictability Rank of 5.0 stars out of five, reflecting its stable operational performance.
Growth Rank Breakdown
United Rentals Inc is also recognized for its robust growth. The company's 3-Year Revenue Growth Rate of 21.3% outperforms 79.43% 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. These figures highlight United Rentals Inc's ongoing commitment to expanding its market presence and operational scale.
Conclusion
Considering United Rentals Inc's strong financial strength, exceptional profitability, and consistent growth metrics, the GF Score effectively highlights the company's superior position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the 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.
