# United Rentals (URI.US)

Canonical: https://gigainvestors.com/s/URI

Analysis as of: 2026-10-16T07:32:46.112Z. Financial observations: FY1998–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $1,047.58 per share; close as of 2026-10-15.

Estimated value: low $611.50 per share, central $873.54 per share, high $1,026.13 per share. Buy at or below the central value $873.54 per share. Valuation as of 2026-10-16T07:32:46.112Z; scenarios are not confidence intervals.

Expected annual return: 8.9% at the stated quote. About 8.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.07×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.24×

- FY2018: 0.25×

- FY2019: 0.23×

- FY2020: 0.22×

- FY2021: 0.24×

- FY2022: 0.28×

- FY2023: 0.27×

- FY2024: 0.27×

- FY2025: 0.25×

- LTM to Jun 2026: 0.25×

### moat: pass

- ROIC, median of available years: 17.4%

- ROIC, second-lowest year: 15.1%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 37.2%

- Recent gross margin (lower of latest and 3-year median): 37.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 28.4%

- ROIC including acquisitions, ten-year median: 9.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 20.0%

- FY2018: 14.9%

- FY2019: 15.6%

- FY2020: 15.1%

- FY2021: 15.9%

- FY2022: 18.5%

- FY2023: 20.1%

- FY2024: 19.3%

- FY2025: 16.6%

- LTM to Jun 2026: 18.1%

### economics: pass

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $10B

- Net income, five-year total: $11B

- Return on incremental invested capital: 23.0%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -1.8 pp

- Working capital / revenue, final three-year average: 11.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 0.99×

- FY2025: 0.73×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.2% vs 19.3%

- Per-share earnings: 6.45 to 38.60 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.9%

- Ordinary dilution, 5-year annual growth: -2.4%

- Market cap gain: $42B

- Cumulative retained earnings: $14B

- Diluted shares, 10-year annual growth: -3.9%

- Diluted shares, 5-year annual growth: -2.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 25.1%

- Per-share value change: $32.16

- Per-share value, starting three-year median: $6.45

- Per-share value, ending three-year median: $38.60

- Buybacks concentrated in cheaper years (correlation): 0.52

- Average buyback yield: 4.0%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $3.9B

- Cumulative net income, 10 years: $16B

- ROIC, first three-year median: 16.2%

- ROIC, last three-year median: 19.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $6.45

- FY2017: $15.73

- FY2018: $13.12

- FY2019: $15.11

- FY2020: $12.20

- FY2021: $19.03

- FY2022: $29.66

- FY2023: $35.28

- FY2024: $38.68

- FY2025: $38.60

### accounting: pass

- Sloan accruals: -9.0%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 2.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.08×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.85×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -11.6%

- FY2017: -5.9%

- FY2018: -9.7%

- FY2019: -9.8%

- FY2020: -9.9%

- FY2021: -11.3%

- FY2022: -9.6%

- FY2023: -8.9%

- FY2024: -7.0%

- FY2025: -9.0%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Ron Muhlenkamp](https://gigainvestors.com/MUHL): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Robert Torray](https://gigainvestors.com/T): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Rolfe](https://gigainvestors.com/WP): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 8.8% a year for ten years · sales +4.6%

Story as of 2026-10-16T09:59:46.446Z; price observation 2026-10-15.

Price needs cash profits to grow 8.8% a year for ten years

- 2025-05-23: United Rentals a 'natural choice' amid AI construction projects ([finance.yahoo.com](https://finance.yahoo.com/video/united-rentals-natural-choice-amid-202540340.html))

- 2025-07-29: United Rentals (URI) Raises Full-Year Outlook on Strong Rental Growth and Fleet Productivity ([finance.yahoo.com](https://finance.yahoo.com/news/united-rentals-uri-raises-full-053845420.html))

- 2025-10-24: United Rentals (URI) Margin Miss Reinforces Investor Focus on Slower Forward Growth Expectations ([finance.yahoo.com](https://finance.yahoo.com/news/united-rentals-uri-margin-miss-021324232.html))

- 2025-11-02: United Rentals (URI): Evaluating Value After Q3 Margin Pressures and Guidance Update ([finance.yahoo.com](https://finance.yahoo.com/news/united-rentals-uri-evaluating-value-081426757.html))

- 2026-01-28: United Rentals (NYSE:URI) Misses Q4 CY2025 Sales Expectations, Stock Drops ([finance.yahoo.com](https://finance.yahoo.com/news/united-rentals-nyse-uri-misses-222750203.html))

- 2026-04-22: United Rentals Announces Strong First Quarter Results and Raises Full-Year 2026 Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/united-rentals-announces-strong-first-201500528.html))

### Sales · FY2025–2026

sales +4.6%; source https://www.sec.gov/Archives/edgar/data/1067701/000106770126000007/uri-20251231.htm; observed 2026-01-28.

- FY2017: $6.6B 

- FY2018: $8.0B 

- FY2019: $9.4B 

- FY2020: $8.5B 

- FY2021: $9.7B 

- FY2022: $12B 

- FY2023: $14B 

- FY2024: $15B 

- FY2025: $16B 

- FY2026: $17B 

### Gross margin · FY2026

gross margin 37.1%; source https://www.sec.gov/Archives/edgar/data/1067701/000106770126000007/uri-20251231.htm; observed 2026-01-28.

- FY2017: 38.1% 

- FY2018: 38.0% 

- FY2019: 34.9% 

- FY2020: 33.2% 

- FY2021: 36.0% 

- FY2022: 39.8% 

- FY2023: 37.6% 

- FY2024: 37.2% 

- FY2025: 35.4% 

- FY2026: 37.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in rental & leasing services; annual sales are USD 16.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1067701/000106770126000007/uri-20251231.htm (filed 2026-01-28); FY2025: revenue 16099000000; grossProfit 5706000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); URI.US: United Rentals, Inc., through its subsidiaries, operates as an equipment rental company in the United States, Canada, Europe, Australia, and New Zealand. It operates through two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, including boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; surface protection mats; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. The company also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. It sells used equipment through its sales force, brokers, website, at auctions, and directly to manufacturers. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.

### Why customers stay

Margins ranged from 35.4% to 37.6% during 2023–25; it earns 17.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2023: grossProfit / revenue = 37.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2024: grossProfit / revenue = 37.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1067701/000106770126000007/uri-20251231.htm (filed 2026-01-28); FY2025: grossProfit / revenue = 35.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); 10-year return on capital observations [[2017,0.20032051282051283],[2018,0.14911540497632064],[2019,0.15641150862874684],[2020,0.15107579797174395],[2021,0.15921914246525257],[2022,0.18459949185322494],[2023,0.20085298012459285],[2024,0.1925890173792141],[2025,0.1661829033465199],[2026,0.1808665408004492]]; median 0.17352472207348454. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 40.8% of cash earnings on expansion; earns 23% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2016: growth capex 0; upkeep 1339000000; owner earnings 472000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2017: growth capex 506000000; upkeep 1383000000; owner earnings 1346000000. Growth capex / owner earnings = 0.37592867756315007.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2018: growth capex 620000000; upkeep 1671000000; owner earnings 1096000000. Growth capex / owner earnings = 0.5656934306569343.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2019: growth capex 312000000; upkeep 2038000000; owner earnings 1174000000. Growth capex / owner earnings = 0.2657580919931857.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2020: growth capex 0; upkeep 1158000000; owner earnings 1720000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2021: growth capex 1215000000; upkeep 1983000000; owner earnings 1386000000. Growth capex / owner earnings = 0.8766233766233766.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2022: growth capex 1473000000; upkeep 2217000000; owner earnings 2105000000. Growth capex / owner earnings = 0.6997624703087886.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2023: growth capex 1289000000; upkeep 2781000000; owner earnings 2424000000. Growth capex / owner earnings = 0.5317656765676567.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); FY2024: growth capex 1201318647.4453883; upkeep 2925681352.5546117; owner earnings 2552318647.4453883. Growth capex / owner earnings = 0.47067737746922245.

- Source: https://www.sec.gov/Archives/edgar/data/1067701/000106770126000007/uri-20251231.htm (filed 2026-01-28); FY2025: growth capex 741124525.9142227; upkeep 3786875474.0857773; owner earnings 1815124525.9142227. Growth capex / owner earnings = 0.40830505859698024.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); Incremental return on capital 0.23014236598112625, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,11000000],[2020,1000000],[2021,0],[2022,0],[2023,406000000],[2024,434000000],[2025,464000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1067701/000106770126000007/uri-20251231.htm (filed 2026-01-28); FY2025: cash repurchases 1969000000 USD.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); URI.US SharesStats.PercentInsiders = 0.434 percentage points; cache date 2026-10-16.

### What could break it

"Our significant indebtedness exposes us to various risks." (SEC filing, Jan 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1067701/000106770126000007/uri-20251231.htm (filed 2026-01-28); Our significant indebtedness exposes us to various risks.

### What the price says

The price assumes cash profits grow 8.8% yearly over ten years; actual growth was 22.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-28); Ten-year compound average after fade. Initial solved rate 0.11313759628184997. Price 1047.58; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.6175275183728766 → FY2025 28.096163177422802. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $75.66 per share

- 2016-11: $101.11 per share

- 2016-12: $105.58 per share

- 2017-01: $126.51 per share

- 2017-02: $128.03 per share

- 2017-03: $125.05 per share

- 2017-04: $109.66 per share

- 2017-05: $108.73 per share

- 2017-06: $112.71 per share

- 2017-07: $118.96 per share

- 2017-08: $118.06 per share

- 2017-09: $138.74 per share

- 2017-10: $141.48 per share

- 2017-11: $159.48 per share

- 2017-12: $171.91 per share

- 2018-01: $181.11 per share

- 2018-02: $175.09 per share

- 2018-03: $172.73 per share

- 2018-04: $150.00 per share

- 2018-05: $159.57 per share

- 2018-06: $147.62 per share

- 2018-07: $148.80 per share

- 2018-08: $155.87 per share

- 2018-09: $163.60 per share

- 2018-10: $120.07 per share

- 2018-11: $117.13 per share

- 2018-12: $102.53 per share

- 2019-01: $125.26 per share

- 2019-02: $134.59 per share

- 2019-03: $114.25 per share

- 2019-04: $140.92 per share

- 2019-05: $110.10 per share

- 2019-06: $132.63 per share

- 2019-07: $126.55 per share

- 2019-08: $112.56 per share

- 2019-09: $124.64 per share

- 2019-10: $133.57 per share

- 2019-11: $153.05 per share

- 2019-12: $166.77 per share

- 2020-01: $135.69 per share

- 2020-02: $132.48 per share

- 2020-03: $102.90 per share

- 2020-04: $128.50 per share

- 2020-05: $138.89 per share

- 2020-06: $149.04 per share

- 2020-07: $155.37 per share

- 2020-08: $177.05 per share

- 2020-09: $174.50 per share

- 2020-10: $178.29 per share

- 2020-11: $226.98 per share

- 2020-12: $231.91 per share

- 2021-01: $243.01 per share

- 2021-02: $297.38 per share

- 2021-03: $329.31 per share

- 2021-04: $319.95 per share

- 2021-05: $333.96 per share

- 2021-06: $319.01 per share

- 2021-07: $329.55 per share

- 2021-08: $352.65 per share

- 2021-09: $350.93 per share

- 2021-10: $379.11 per share

- 2021-11: $338.74 per share

- 2021-12: $332.29 per share

- 2022-01: $320.12 per share

- 2022-02: $321.62 per share

- 2022-03: $355.21 per share

- 2022-04: $316.52 per share

- 2022-05: $298.18 per share

- 2022-06: $242.91 per share

- 2022-07: $322.67 per share

- 2022-08: $292.04 per share

- 2022-09: $270.12 per share

- 2022-10: $315.71 per share

- 2022-11: $353.03 per share

- 2022-12: $355.42 per share

- 2023-01: $440.95 per share

- 2023-02: $468.53 per share

- 2023-03: $395.76 per share

- 2023-04: $361.11 per share

- 2023-05: $333.79 per share

- 2023-06: $445.37 per share

- 2023-07: $464.68 per share

- 2023-08: $476.54 per share

- 2023-09: $444.57 per share

- 2023-10: $406.27 per share

- 2023-11: $476.02 per share

- 2023-12: $573.42 per share

- 2024-01: $625.40 per share

- 2024-02: $693.27 per share

- 2024-03: $721.11 per share

- 2024-04: $667.99 per share

- 2024-05: $669.41 per share

- 2024-06: $646.73 per share

- 2024-07: $757.10 per share

- 2024-08: $741.26 per share

- 2024-09: $809.73 per share

- 2024-10: $812.80 per share

- 2024-11: $866.00 per share

- 2024-12: $704.44 per share

- 2025-01: $758.06 per share

- 2025-02: $642.32 per share

- 2025-03: $626.70 per share

- 2025-04: $631.45 per share

- 2025-05: $708.38 per share

- 2025-06: $753.40 per share

- 2025-07: $882.94 per share

- 2025-08: $956.34 per share

- 2025-09: $954.66 per share

- 2025-10: $871.18 per share

- 2025-11: $815.18 per share

- 2025-12: $809.32 per share

- 2026-01: $782.06 per share

- 2026-02: $840.00 per share

- 2026-03: $728.56 per share

- 2026-04: $959.84 per share

- 2026-05: $995.67 per share

- 2026-06: $1,132.89 per share

- 2026-07: $1,079.26 per share

- 2026-08: $1,038.00 per share

- 2026-09: $1,000.78 per share

- 2026-10: $1,060.58 per share

## Annual estimated value (USD per share)

- FY2016: low $63.03 per share, central $77.57 per share, high $90.13 per share

- FY2017: low $81.90 per share, central $106.27 per share, high $123.88 per share

- FY2018: low $109.50 per share, central $137.04 per share, high $159.95 per share

- FY2019: low $199.74 per share, central $277.25 per share, high $325.25 per share

- FY2020: low $212.19 per share, central $296.01 per share, high $347.27 per share

- FY2021: low $258.77 per share, central $369.66 per share, high $434.23 per share

- FY2022: low $318.12 per share, central $454.44 per share, high $533.82 per share

- FY2023: low $480.73 per share, central $686.25 per share, high $805.93 per share

- FY2024: low $532.30 per share, central $759.44 per share, high $891.70 per share

- FY2025: low $565.61 per share, central $807.08 per share, high $947.69 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:31.506Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1067701/000106770126000007/uri-20251231.htm); period 2025-12-31, filed 2026-01-28.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.