United Rentals, Inc. (URI)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a durable business bought at a sensible price. United Rentals is a scale player in equipment rental, renting backhoes, lifts, and specialty tools across the U.S., Canada, Europe, Australia, and New Zealand. Scale can create a modest moat: a broad fleet, local density, and service network are hard to replicate, and the company has 28,500 employees. FairStock reports ROE of 28.89%, a Piotroski F-Score of 8/9, and a PEG of 1.21. Filed results show that in fiscal 2025 (the year ended 2025-12-31), revenue was $3.7B, net income was $2.5B, and diluted EPS was $38.61. In fiscal 2024 (the year ended 2024-12-31), revenue was $3.6B, net income was $2.6B, and diluted EPS was $38.69. In fiscal 2023 (the year ended 2023-12-31), revenue was $3.4B, net income was $2.4B, and diluted EPS was $35.28. Growth is present, though not linear. But the price is the problem. At the 2026-10-13 close of $1,060.58, the market cap is $66.4B. FairStock calculates a P/E of 25.51 and P/B of 7.17. Its Graham Number is $372.02, leaving a margin of safety of -185.09%, so the stock trades far above asset-based value. Free cash flow is only $632.0M, a 1.0% FCF yield. Debt-to-equity is 1.67, and the Altman Z-Score is 2.78, in the gray zone. ROCE of 8.77% is not exceptional. I would want a wider discount for a cyclical, capital-intensive, leveraged rental business. The growth story is good; the valuation leaves little room for error.

In plain English: United Rentals rents construction and industrial equipment, such as lifts, backhoes and tools, across several countries. The business has grown profits and earns high returns on shareholder money, but it uses a lot of debt and produces little free cash relative to its market value. At the recent close near $1,061, the stock looks expensive compared with its accounting value and cash generation, even though growth has been strong.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer