United Rentals Stock Intrinsic Value – Raymond James Financial Services Advisors Reduces Stake in United Rentals,
March 28, 2024
☀️Trending News
United Rentals ($NYSE:URI) is a leading equipment rental company in the United States and Canada, providing a wide range of industrial and construction equipment for rent. Recently, Raymond James Financial Services Advisors Inc., a leading investment firm, has announced a reduction in its stake in United Rentals. This news comes as a surprise to many investors as United Rentals has been performing well in recent years. This can be attributed to the company’s strategic investments, strong financial performance, and successful acquisitions. It is common for investment firms to regularly adjust their portfolios based on market conditions and company performance. It is also possible that the firm may have reallocated its assets to other investments that have shown better potential for returns. While this news may have some investors concerned, it is important to note that other major investment firms, such as Vanguard Group Inc. and BlackRock Inc., still hold significant stakes in United Rentals. These firms are known for their long-term investments and have shown confidence in United Rentals’ future growth prospects.
In addition, United Rentals continues to have a strong financial outlook. It also announced a $1 billion share repurchase program, indicating its confidence in its own stock. Overall, while the reduction in stake by Raymond James Financial Services Advisors Inc. may have caused some short-term fluctuations in United Rentals’ stock price, it is important for investors to look at the bigger picture. The company remains a strong player in the equipment rental industry and has a promising future ahead.
Market Price
This news caused a stir in the market, as investors were eager to see how this change would affect the company’s stock performance. The day started off strong for UNITED RENTALS, with its stock opening at $709.4. Throughout the day, there was a steady increase in stock price, and it eventually closed at $720.2. This was a significant increase of 2.2% from the prior closing price of 704.8. As a major shareholder in UNITED RENTALS, this move has caught the attention of other investors who are closely monitoring the company’s stock performance. This news comes at a time when UNITED RENTALS has been experiencing a steady growth in its stock price.
While it remains to be seen how this reduction in stake will impact UNITED RENTALS in the long run, the initial response from the market has been positive. This further solidifies the company’s position as a strong player in the industry and instills confidence in its investors. With its stock price on the rise and a strong market presence, the company continues to be a top competitor in the equipment rental industry. Only time will tell how this change will affect the company’s future performance, but for now, things are looking bright for UNITED RENTALS. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for United Rentals. More…
| Total Revenues | Net Income | Net Margin |
| 14.33k | 2.42k | 17.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for United Rentals. More…
| Operations | Investing | Financing |
| 4.7k | -2.98k | -1.47k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for United Rentals. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 25.59k | 17.46k | 119.94 |
Key Ratios Snapshot
Some of the financial key ratios for United Rentals are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.9% | 28.5% | 26.8% |
| FCF Margin | ROE | ROA |
| 4.4% | 30.3% | 9.4% |
Analysis – United Rentals Stock Intrinsic Value
As an analyst at GoodWhale, I have thoroughly analyzed the financials of UNITED RENTALS and have determined that the company’s current stock price is overvalued. Our team has calculated a fair value of $491.6 for UNITED RENTALS’ shares, based on our proprietary Valuation Line. This means that the stock is currently trading at a 46.5% premium. One of the main factors contributing to this overvaluation is the company’s recent financial performance. While UNITED RENTALS has shown growth in revenue and earnings, it has not been significant enough to justify such a high stock price. Additionally, the company’s debt levels have increased in recent years, which could present risks to its future profitability. Furthermore, we have also taken into account the industry and market conditions in our valuation analysis. While the construction equipment rental industry has been experiencing growth, there are uncertainties in the market that could potentially impact UNITED RENTALS’ financials in the future. It is important for investors to be aware of this overvaluation and consider it in their decision-making process. While UNITED RENTALS may be a strong company with potential for growth, paying a premium for its stock may not be a wise investment decision at this time. More…
Peers
The rental equipment market is highly competitive, with United Rentals, Inc. (URI) competing against Herc Holdings Inc. (Herc), Ashtead Group PLC (Ashtead), and Kanamoto Co., Ltd. (Kanamoto). URI is the largest equipment rental company in the world, with over 1,100 locations in the United States, Canada, and Europe. Herc is the second largest equipment rental company in the United States, with over 400 locations. Kanamoto is a leading equipment rental company in Japan, with over 100 locations.
– Herc Holdings Inc ($NYSE:HRI)
Herc Holdings Inc is a leading provider of equipment rental solutions. It has a market cap of 3.01B as of 2022 and a return on equity of 26.7%. The company has a strong focus on customer service and providing high-quality equipment. It has a wide range of products and services that it offers to its customers.
– Ashtead Group PLC ($LSE:AHT)
Ashtead Group PLC is a British multinational equipment rental company headquartered in London, United Kingdom. It is the second largest equipment rental company in the world, and has over 1,400 locations in nine countries. The company rents a wide range of construction and industrial equipment, such as excavators, cranes, and backhoes.
Ashtead Group PLC has a market cap of 18.66B as of 2022, and a Return on Equity of 24.37%. The company has been growing steadily in recent years, and is expected to continue to do so in the future. Ashtead Group PLC is a well-run company, and is a good investment for those looking for growth in the equipment rental industry.
– Kanamoto Co Ltd ($TSE:9678)
Kanamoto Co Ltd is a Japanese company that specializes in construction equipment. The company has a market cap of 77.73B as of 2022 and a Return on Equity of 6.4%. Kanamoto has a strong presence in the Japanese construction market and is a well-known player in the industry. The company’s products are used in a variety of construction projects, including residential and commercial construction, civil engineering, and more.
Summary
Raymond James Financial Services Advisors Inc. has recently reduced its stake in United Rentals, Inc., a leading equipment rental company. This move comes after the company’s stock has risen significantly in the past year, reaching an all-time high. This may indicate that Raymond James believes the stock may have reached its peak value and is now reducing its exposure to minimize risk.
Additionally, other major institutional investors have also decreased their holdings in United Rentals, potentially signaling a broader trend of caution towards the company. This could be a potential red flag for investors to carefully monitor the company’s financial performance and future prospects before making any investment decisions.
