United Rentals Inc (URI, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $706.57, United Rentals Inc has enjoyed a daily gain of 3.97% and a three-month increase of 5.85%. 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: financial strength, profitability, growth, GF Value, and momentum. These aspects have been proven to correlate with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. United Rentals Inc boasts a GF Score of 92 out of 100, 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 $47.05 billion and annual sales of $14.53 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 sectors including general industrial, commercial construction, and residential construction. Since its public debut in 1997, United Rentals has expanded its offerings through organic growth and numerous acquisitions, now boasting a fleet valued at $21 billion.
Profitability and Growth Metrics
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, highlighting its increasing efficiency in converting revenue into profit. These trends are complemented by a strong Predictability Rank of 5.0 stars, reflecting stable operational performance and reliability for investors.
United Rentals Inc also excels in growth, with a 3-Year Revenue Growth Rate of 21.3%, outperforming 79.53% of its peers in the Business Services industry. The company's EBITDA has also seen significant growth, further underscoring its robust business expansion capabilities.
Conclusion: A Promising Outlook
Considering United Rentals Inc's strong financial strength, exceptional profitability, and impressive growth metrics, the GF Score highlights the company's unmatched potential for future outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through 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.
