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$743.48 - $1,604.58$1,062.01
Multi-Stage$539.60 - $589.40$564.05
Blended Fair Value$813.03
Current Price$954.66
Upside-14.84%
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 Rate9.90%9.90%9.90%
Growth Rate5.50%6.50%7.50%
Fair Value$743.48$1,062.01$1,604.58
Upside / Downside-22.12%11.25%68.08%

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 Rate9.90%9.90%9.90%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)788.87796.34803.82
Year 2 PV (M)1,092.481,113.291,134.29
Year 3 PV (M)1,370.491,409.831,449.92
Year 4 PV (M)1,624.471,686.941,751.20
Year 5 PV (M)1,855.891,945.532,038.60
PV of Terminal Value (M)28,455.6429,830.0531,257.07
Equity Value (M)35,187.8336,781.9938,434.91
Shares Outstanding (M)65.2165.2165.21
Fair Value$539.60$564.05$589.40
Upside / Downside-43.48%-40.92%-38.26%

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