Joel Greenblatt (Trades, Portfolio) tripled his stake in United Rentals (URI, Financial) during the second quarter. The guru added 559,604 shares of the company at an average price of $65.25. The trade had a 0.45% impact on Greenblatt’s portfolio. He now owns 746,158 shares of the company. Since Greenblatt's purchase, the company’s market price has risen by an estimated 24%.
United Rentals was founded in 1997 in Delaware. The company has since built its way up to becoming the largest equipment rental company in the world, with over 880 rental locations located in 49 states, as well as 10 Canadian provinces. The company has approximately 3,300 classes of equipment available for rent to customers which include construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities.
United Rentals has a market cap of $6.96 billion, an enterprise value of $14.57 billion, a P/E ratio of 12.26 and a P/B ratio of 4.69.
GuruFocus gives United Rentals a 4 of 10 financial strength rating, a cash to debt ratio of 0.03, an equity to asset ratio of 0.12, an interest coverage ratio of 1.14 and a Beneish M-Score of -3.29, indicating that the company is not a manipulator of its financial statements. The company also has an 8 of 10 profitability and growth rating with an operating margin of 24.88%, a ROE of 41.07% and EPS (3y) growth of 97.30%, ranking it above 96% of the 163 companies in the global rental and leasing services industry.
Joel Greenblatt (Trades, Portfolio) likely tripled his stake in United Rentals because the company is the largest equipment rental company in the world today. Its business models are not easy to replicate because it already has nearly 20 years of operating experience and has established its brand as well as its customer base. The company has also reported strong financial numbers over the previous decade as well as excellent EPS growth over the past three years. The company is also trading below its intrinsic value, according to the Peter Lynch chart below.
Guru Joel Greenblatt (Trades, Portfolio) is a graduate of The Wharton School at the University of Pennsylvania and is the co-chief investment officer of Gotham Asset Management, an investment firm that began in 1985 with $7 million dollars. Today, Gotham Asset Management owns 935 stocks with a total value of $8.34 million.
Disclosure:Ă‚ Author does not own any shares of this company.
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