ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. United Rentals's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.71%.
As of today (2026-06-26), United Rentals's WACC % is 15.07%. United Rentals's ROIC % is 11.06% (calculated using TTM income statement data).
United Rentals earns returns that do not match up to its cost of capital. It will destroy value as it grows.
United Rentals (MEX:URI) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, United Rentals's WACC % is 15.07%. United Rentals's ROIC % is 11.06% (calculated using TTM income statement data).
United Rentals earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
United Rentals ROIC % Related Terms
United Rentals ROIC % Historical Data
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The historical data trend for United Rentals's ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Rental & Leasing Services subindustry, United Rentals's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
United Rentals ROIC % vs Business Services Industry
For the Business Services industry and Industrials sector, United Rentals's ROIC % distribution charts can be found below:
* The bar in red indicates where United Rentals's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
United Rentals (MEX:URI) has a ROIC % of 9.71% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on United Rentals and its competitors.
Is United Rentals' ROIC % too high?
United Rentals' current ROIC % is 9.71%. The Business Services industry median ROIC % is 5.93. United Rentals' value of 9.71% is 63.7% above this industry median. Overall, United Rentals has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does United Rentals' ROIC % compare to SUNB and AER?
United Rentals' ROIC % of 9.71% can be compared against companies in the Business Services industry. The industry median ROIC % is 5.93. United Rentals' value of 9.71% is 63.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Business Services company?
The median ROIC % among Business Services companies is 5.93, based on 1,075 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Rentals's current ROIC % of 9.71% is 63.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on United Rentals and its competitors. For the Business Services industry, the median ROIC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Rentals's current ROIC % is 9.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Rentals stock overvalued right now?
Based on GuruFocus' analysis, United Rentals (MEX:URI) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN14,553.52, compared to a current price of MXN19,850.00 — trading 36.4% above its estimated fair value. The current ROIC % is 9.71% and 63.7% above the Business Services industry median of 5.93. United Rentals' overall GF Score™ is 88/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For United Rentals (MEX:URI), the current ROIC % is 9.71% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is United Rentals (MEX:URI) Overvalued in 2026?
Based on GuruFocus' analysis, United Rentals stock appears to be overvalued.
The current stock price of MXN19,850.00 is trading 36.4% above its estimated GF Value™ of MXN14,553.52.
GuruFocus considers United Rentals to be Significantly Overvalued.
Key valuation signals for MEX:URI:
ROIC %: 9.71%
GF Value™: MXN14,553.52 vs. price of MXN19,850.00 (36.4% above fair value)
Industry Position: 63.7% above the Business Services median
No single metric tells the full story. See the MEX:URI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Rentals is the world's largest equipment rental company, principally operating in the US and Canada. It has 16% share in a highly fragmented market serving general industrial (49%), commercial construction (46%), and residential construction (5%). The company operates a $21 billion fleet of equipment, including aerial platforms, forklifts, excavators, trucks, power generators, and various other materials serving local and national accounts from nearly 1,600 locations in North America and 100 abroad. It has pursued a strategy of bundling specialty rental capabilities to offer its customers more advanced solutions in addition to its core equipment rental business, supporting its ambitions to become a one-stop shop for customers and enhance and maintain its margin profile.
88GF Score
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