Investment Thesis
United Rentals demonstrates strong profitability metrics with 38.2% gross margins and 24.7% operating margins, supported by exceptional 335.7% YoY revenue growth. However, concerning liquidity ratios (0.94x current ratio) and high leverage (1.59x debt-to-equity) with $14.3B long-term debt create financial stress that offsets operational strength, warranting cautious positioning.
URI Strengths
- Exceptional revenue growth of 335.7% YoY indicating strong market demand and operational expansion
- Robust profitability with 38.2% gross margin and 27.8% ROE demonstrating efficient operations and capital deployment
- Solid free cash flow generation of $1.1B enabling debt service and reinvestment despite capital intensity
URI Risks
- Weak liquidity position with current ratio of 0.94x and quick ratio of 0.88x below 1.0x threshold, indicating potential near-term cash flow strain
- High financial leverage with 1.59x debt-to-equity ratio and $14.3B long-term debt representing 48% of total assets, limiting financial flexibility
- Net income declined 3.1% YoY despite 335.7% revenue growth, signaling margin compression or increased operating expenses offsetting top-line gains
Key Metrics to Watch
- Operating cash flow trends and free cash flow conversion to assess debt service capability
- Debt-to-EBITDA ratio and refinancing activity given high leverage and rising interest rate environment
- Gross and operating margin sustainability as revenue growth moderates and operational leverage effects stabilize
URI Financial Metrics
URI Profitability Ratios
URI Balance Sheet & Liquidity
URI 5-Year Financial Trend
5-Year Trend Summary: UNITED RENTALS, INC.'s revenue has grown significantly by 64% over the 5-year period, indicating strong business expansion. The most recent EPS of $35.28 reflects profitable operations.
URI Growth Metrics (YoY)
URI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $874.0M | $701.0M | $10.70 |
| Q2 2025 | $870.0M | $622.0M | $9.54 |
| Q1 2025 | $825.0M | $518.0M | $7.91 |
| Q3 2024 | $842.0M | $703.0M | $10.29 |
| Q2 2024 | $852.0M | $591.0M | $8.58 |
| Q1 2024 | $802.0M | $451.0M | $6.47 |
| Q3 2023 | $578.0M | $606.0M | $8.66 |
| Q2 2023 | $556.0M | $493.0M | $6.90 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
URI Capital Allocation
URI SEC Filings
Access official SEC EDGAR filings for UNITED RENTALS, INC. (CIK: 0001067701)