Report
Valens Research

URI - Embedded Expectations Analysis - 2020 02 11

 United Rentals, Inc. (URI:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 14.0x Uniform P/E, implying bearish expectations for the firm. Moreover, management may be concerned about capex investments, macroeconomic headwinds, and their sales mix
 Specifically, management may be concerned about their capex investments, their aging fleet, and flat industrial revenues. Moreover, they may be downplaying concerns about operating environment headwinds and the impact of their fleet relocation. Furthermore, they may be exaggerating the potential of their strategic growth initiatives, and they may be concerned about the progress of their BlueLine integration and the margin impact of their retail and auction sales mix
Underlying
United Rentals Inc.

United Rentals is an equipment rental company that operates throughout the United States and Canada, and Europe. The company's general rentals segment includes the rental of construction, aerial and industrial equipment, general tools and light equipment, and related services and activities. This segment's customers include construction and industrial companies, manufacturers, utilities, municipalities and homeowners. The company's trench, power and fluid solutions segment includes the rental of construction products and related services. This segment consist of: Trench Safety region, Power and Heating, Ventilating and Air Conditioning region; and Fluid Solutions and Fluid Solutions Europe regions.

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Valens Research
Valens Research

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