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Intrinsic Value of United Rentals, Inc. (URI)

Previous Close$425.96
Intrinsic Value
Upside potential
Previous Close
$425.96

VALUATION INPUT DATA

This valuation is based on fiscal year data as of 2022-12-31 and quarterly data as of 2023-06-30.

  1. Annual
  2. Quarterly YoY
  3. Quarterly QoQ

Annual revenue growth rates, % (past and forecasted)

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2022(a)2023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047

INCOME STATEMENT

Revenue growth rate, %19.8NaN
Revenue, $11642NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $m8410NaN
Operating income, $m3232NaN
EBITDA, $m5462NaN
Interest expense (income), $mNaN
Earnings before tax, $m2802NaN
Tax expense, $m697NaN
Net income, $m2105NaN

BALANCE SHEET

Cash and short-term investments, $m106NaN
Total assets, $m24183NaN
Adjusted assets (=assets-cash), $m24077NaN
Average production assets, $m18955NaN
Working capital, $m278NaN
Total debt, $m11370NaN
Total liabilities, $m17121NaN
Total equity, $m7062NaN
Debt-to-equity ratio1.610NaN
Adjusted equity ratio0.296NaN

CASH FLOW

Net income, $m2105NaN
Depreciation, amort., depletion, $m2230NaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $m4433NaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $m-2701NaN
Free cash flow, $m7134NaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $m278
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN

Company description

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. The company sells used equipment through its sales force, brokers, website, at auctions, and directly to manufacturers. The company operates a network of 1,521 rental locations in the United States, Canada, Europe, Australia, and New Zealand. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.
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