Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

United Rentals, Inc. (URI)

Company Dividend Discount ModelIndustry: Rental & Leasing ServicesSector: Industrials

Valuation Snapshot

Stable Growth$1,028.37 - $3,257.96$1,655.30
Multi-Stage$667.70 - $730.02$698.29
Blended Fair Value$1,176.80
Current Price$954.66
Upside23.27%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%6.666.230.000.000.000.000.000.000.000.00
YoY Growth--6.90%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.06%0.88%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,530.00
(-) Cash Dividends Paid (M)458.00
(=) Cash Retained (M)2,072.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)506.00316.25189.75
Cash Retained (M)2,072.002,072.002,072.00
(-) Cash Required (M)-506.00-316.25-189.75
(=) Excess Retained (M)1,566.001,755.751,882.25
(/) Shares Outstanding (M)65.2165.2165.21
(=) Excess Retained per Share24.0126.9228.86
LTM Dividend per Share7.027.027.02
(+) Excess Retained per Share24.0126.9228.86
(=) Adjusted Dividend31.0433.9535.89
WACC / Discount Rate8.68%8.68%8.68%
Growth Rate5.50%6.50%7.50%
Fair Value$1,028.37$1,655.30$3,257.96
Upside / Downside7.72%73.39%241.27%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,530.002,694.452,869.593,056.113,254.763,466.323,570.31
Payout Ratio18.10%32.48%46.86%61.24%75.62%90.00%92.50%
Projected Dividends (M)458.00875.221,344.741,871.602,461.273,119.693,302.54

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.68%8.68%8.68%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)797.72805.28812.85
Year 2 PV (M)1,117.151,138.431,159.91
Year 3 PV (M)1,417.171,457.851,499.31
Year 4 PV (M)1,698.661,763.981,831.17
Year 5 PV (M)1,962.432,057.222,155.63
PV of Terminal Value (M)36,548.1538,313.4440,146.29
Equity Value (M)43,541.2845,536.2047,605.15
Shares Outstanding (M)65.2165.2165.21
Fair Value$667.70$698.29$730.02
Upside / Downside-30.06%-26.85%-23.53%

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