| 2014 | 2015 | 2016 | 2018 | 2019 (projected) | United Rentals Long Term Debt to Equity | 4.13 | 5.12 | 4.36 | 5.02 | 6.65 | United Rentals Interest Coverage | 2.51 | 2.68 | 2.77 | 2.49 | 2.14 |
Will United Rentals eventually reverse?
 | By Ellen Johnson | Macroaxis Story |
Today I will concentrate on United Rentals. I will examine why in spite of prevalent disturbance, the overall long-run investment outlook of the entity is still stable. In this post I will also go over some important variables effecting the company products and services and how it may impact United Rentals outlook for investors this year. What is United Rentals Target Price Odds to finish over Current Price? In reference to normal probability distribution, the odds of United Rentals to move above current price in 30 days from now is about 45.26%. The United Rentals probability density function shows the probability of United Rentals Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, the stock has beta coefficient of 1.4461 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, United Rentals will likely underperform. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. United Rentals is significantly underperforming S&P 500.
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Reviewed by Michael Smolkin
I believe the firm is fairly valued at 122.53 per share with modest projections ahead. The entity has beta of 1.4461 which indicates as market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, United Rentals will likely underperform. Even though it is essential to pay attention to United Rentals current price movements, it is always good to be careful when utilizing equity historical returns. Macroaxis philosophy towards measuring future performance of any stock is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. United Rentals exposes twenty-one different technical indicators which can help you to evaluate its performance. United Rentals has expected return of -0.0755%. Please be advised to validate United Rentals Coefficient Of Variation, Treynor Ratio as well as the relationship between Treynor Ratio and Semi Variance to decide if United Rentals past performance will be repeated at some point in the near future. The performance of United Rentals in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence United Rentals' stock prices. When investing in United Rentals, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, United Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as United Rentals carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
And What about dividends?
A dividend is the distribution of a portion of United Rentals earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. United Rentals dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. United one year expected dividend income is about USD2.52 per share.
The United Rentals' current Dividend Payout Ratio is estimated to increase to 0.16, while Dividends Paid is forecasted to increase to (385.7 M). | Last Reported | Projected for Next Year | ||
| Dividends Paid | -406 M | -385.7 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.15 | 0.16 | |
| Dividend Paid And Capex Coverage Ratio | (1.28) | (1.35) |
Investing in stocks that pay dividends, such as stock of United Rentals, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in United Rentals must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for United Rentals. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is United Rentals's Liquidity
United Rentals financial leverage refers to using borrowed capital as a funding source to finance United Rentals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. United Rentals financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to United Rentals' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of United Rentals' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between United Rentals's total debt and its cash.
What do experts say about United?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusA Deeper Perspective
United Rentals maintains a total of 78.79 Million outstanding shares. Majority of United Rentals outstanding shares are owned by other institutions. These institutional investers are referred to non-private investors that are looking to take positions in United Rentals to benefit from reduced commissions. Consequently, institutions are subject to different set of regulations than regular investors in United Rentals. Please pay attention to any change in the institutional holdings of United Rentals as this could imply that something significant has changed or about to change at the company. Note that regardless of how profitable the company is, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns from it at some point. The small decline in market price for the last few months has created some momentum for investors as it was traded today as low as 125.14 and as high as 128.75 per share. The company executives did not add much value to United Rentals investors in March. However, diversifying your holdings with United Rentals or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.2773. The current volatility is consistent with the ongoing market swings in March 2019 as well as with United Rentals unsystematic, company specific events. United Rentals preserves 1.1b of net income. United Rentals is selling at 126.74. That is 1.38 percent up. Day Low was 125.14. United Rentals Revenues USD is nearly stable at the moment. Further, United Rentals Tangible Asset Value is nearly stable at the moment.
To conclude, we believe that at this point United Rentals is fairly valued with below average odds of distress within the next 2 years. Our concluding buy vs hold vs sell advice on the entity is Strong Hold.
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