Fundamental Analysis
About United Rentals
Founded in 1997, United Rentals is the largest equipment rental company in the world, with a store network nearly three times the size of any other provider, and locations in 49 states and 10 Canadian provinces.
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see UNITED RENTALS makes a margin of 37% on Gross Level and about 10% on Net level This means that out of $1 that it makes $0.1 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see UNITED RENTALS grew at an good rate of 28% in the revenue and the net profit figures grew by 69%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see UNITED RENTALS makes a Return on Assets of 5% and Return of Equity of 24% which is pretty good.
Here we see that UNITED RENTALS scores high on each and every one of the parameters that we have selected when compared to our reasonable barriers that we have kept.
But the Debt/Equity ratio is high and can cause issues with respect to cashflows in case the interest rates increase and the general economic trend with respect to infrastructure building that President Trump is planning.
It maybe a risky bet but worth a look after you select all the Gold standard stocks in this site.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by UNITED RENTALS to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
