URI Systematic Research
United Rentals Inc presents a distinctive profile within equipment rental operations, trading at a market capitalization of $67.2 billion while delivering a return on equity of 29.18%—nearly triple its return on assets of 8.71%. This spread highlights the company's capital structure dynamics, with a debt-to-equity ratio of 1.59 reflecting the leverage commonly deployed in asset-intensive business models. Systematic screening shows the current price of $1,079.26 represents approximately 25.56 times trailing twelve-month earnings, supported by EPS of $41.60 per share.
Profitability metrics warrant attention across multiple dimensions:
- The 15.67% net margin demonstrates substantial pricing power within the equipment rental segment, considerably exceeding industry averages for distribution businesses
- Operating margin of 25.08% indicates effective fleet utilization and operational leverage
- Gross margin of 38.36% provides meaningful cushion for cyclical demand fluctuations
The model indicates moderate growth momentum, with revenue advancing 6.88% year-over-year and earnings per share expanding 7.67%. This organic expansion occurs alongside significant capital deployment, as evidenced by the price-to-book ratio of 5.74, suggesting markets assign premium valuation to URI's installed rental fleet base. The current ratio of 0.94 flags working capital considerations typical of equipment-heavy operations, though operating cash generation historically supports this metric in rental models.
Beta of 1.8 signals amplified sensitivity to broader market movements, reflecting URI's cyclical exposure to construction and industrial activity. Against peers including Grainger (GWW) and Fastenal (FAST), United Rentals operates with higher financial leverage but delivers superior return on equity, positioning the shares within systematic value-quality frameworks that emphasize profitability intensity.
Analysis updated monthly based on systematic screening of fundamentals, profitability, growth, and peer positioning.