United Rentals Inc (URI, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $751.89 and a daily gain of 0.92%, United Rentals Inc has shown a notable three-month growth of 12.29%. A detailed analysis, supported by the GF Score, indicates that United Rentals Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently to calculate a comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. United Rentals Inc boasts a GF Score of 92 out of 100, highlighting its strong potential for market outperformance.
- Financial strength rank: 5/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Understanding United Rentals Inc's Business
United Rentals Inc, with a market cap of $49.73 billion and annual sales of $14.75 billion, is the world's largest equipment rental company. Operating primarily in the United States and Canada, it holds about 15% market share in a highly fragmented industry. The company serves various end markets, including general industrial, commercial construction, and residential construction. Since its public debut in 1997, United Rentals has expanded its offerings through organic growth and numerous acquisitions, now boasting a fleet size valued at $21 billion.
Profitability and Growth Metrics
United Rentals Inc's Operating Margin has impressively increased from 23.22% in 2019 to 26.90% in 2023, demonstrating its growing efficiency in revenue conversion to profit. Similarly, its Gross Margin has consistently risen over the past five years, underscoring its enhanced profitability.
The company's Growth Rank is also noteworthy, with a 3-Year Revenue Growth Rate of 21.3%, outperforming 79.69% of its peers in the Business Services industry. This is complemented by a robust increase in EBITDA, highlighting United Rentals Inc's ongoing growth capabilities.
Conclusion
Considering United Rentals Inc's strong financial strength, exceptional profitability, and consistent growth metrics, the GF Score effectively underscores the company's superior position for potential market outperformance. For investors seeking similar opportunities, exploring other companies with strong GF Scores is highly recommended.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
