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 $765.99, United Rentals Inc has enjoyed a daily gain of 1.56% and an impressive three-month growth of 13.16%. A detailed analysis, supported by the GF Score, indicates that United Rentals Inc is poised for significant future growth.
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 indicating the highest potential for outperformance. United Rentals Inc boasts a GF Score of 92, reflecting its 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 is the world's largest equipment rental company, primarily operating in the United States and Canada. With a market cap of $50.66 billion and annual sales of $14.75 billion, the company enjoys a 15% market share in a highly fragmented industry. United Rentals serves various end markets, including general industrial, commercial construction, and residential construction. Since its public debut in 1997, the company has expanded its offerings through organic growth and numerous acquisitions, now boasting a fleet size valued at $21 billion.
Profitability Rank Breakdown
United Rentals Inc's Operating Margin has shown a notable increase over the past five years, with recent figures demonstrating a rise from 23.22% in 2019 to 26.90% in 2023. Additionally, the company's Gross Margin has consistently improved, highlighting its enhanced ability to convert revenue into profit. These trends underscore United Rentals Inc's robust profitability, which is further reflected in its top-tier Profitability Rank.
Growth Rank Breakdown
United Rentals Inc is distinguished by its strong Growth Rank. The company's 3-Year Revenue Growth Rate of 21.3% surpasses 79.27% of its peers in the Business Services industry. Moreover, 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 business and enhancing its market position.
Conclusion
Considering United Rentals Inc's strong financial strength, exceptional profitability, and impressive 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 available to GuruFocus Premium members.
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.
