Home Sectors Industrials Stock Valuation: United Rentals (NYSE: URI)

Stock Valuation: United Rentals (NYSE: URI)

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United Rentals is part of the consulting and outsourcing industry and industrials sector. The company CEO is Michael J. Kneeland. United Rentals Inc operates in the rental and leasing industry. It provides equipment on rent to construction and industrial companies, manufacturers, utilities, municipalities, homeowners, government entities.

Previous Intraday Trading Performance:

The URI stock showed a previous change of 1.27% with an open at 126.55 and a close of 127.89. It reached an intraday high of 128.73 and a low of 126.14.

SeekingAlpha:  ClearBridge Mid Cap Growth Strategy Portfolio Manager Commentary Q4 2018

Liquidity:

The stock has a market cap of $10.2b with 79.6m shares outstanding, of which the float is 75.4m shares. Trading volume reached 923,169 shares compared to its average volume of 1,788,348 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, United Rentals shares returned -0.97% and in the past 30 trading days it returned 26.00%. Over three months, it changed 5.55%. In one year it has changed -22.99% and within that year its 52-week high was 190.74 and its 52-week low was 94.28. URI stock is 35.65% above its 52 Week Low.

Our calculations show a 200 day moving average of 141.39 and a 50 day moving average of 114.49. Currently URI stock is trading -9.55% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  ClearBridge Mid Cap Growth Strategy Portfolio Manager Commentary Q4 2018

Earnings:

The last annual fiscal EPS for the company was reported at 16.31 that ended on 31st of December 2018, which according to the previous close, that is a PE of 9.73. Based on 5 analyst estimates, the consensus EPS for the next quarter is 4.77. The TTM EPS is 16.31, which comes to a TTM PE of 7.84. Historically, the PE high was 33.00 and the PE low was 6.00. If the stock reached its PE low, that would represent a price of 97.88, which is a decrease of -23.47%.

The following are the last four quarter reported earnings per share:
12-31-2018:  4.85
09-30-2018:  4.74
06-30-2018:  3.85
03-31-2018:  2.87

Base on our calculations, the intrinsic value per share is 178.92, which means it is possibly undervalued and has a margin of safety of 28.52%

Indicators to Watch:

Based on the latest filings, there is 5.00% of insider ownership and 128.40% of institutional ownership. Short-interest is 3,206,637, which is 4.03% of shares outstanding. The short-interest ratio or days-to-cover ratio is 1.83. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 2.51

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 33.68%, return on assets is 6.61%, profit margin is 13.62%, price-to-sales is 1.25 and price-to-book is 2.95.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 3  :Future Growth Score
 0  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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