United Story

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URI -- USA Stock  

USD 295.11  17.41  5.57%

United Rentals Free Cash Flow is most likely to increase significantly in the upcoming years. The last year's value of Free Cash Flow was reported at 1.01 Billion. The current Invested Capital is estimated to increase to about 7 B, while Net Income Per Employee is projected to decrease to roughly 45.8 K. This short post will concentrate on United Rentals as a possible investment alternative for your portfolios. We will provide a perspective on United Rentals future direction.
Published over three weeks ago
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Should you continue to rely on United Rentals (NYSE:URI) management?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. United Rentals has an asset utilization ratio of 72.66 percent. This implies that the company is making $0.73 for each dollar of assets. An increasing asset utilization means that United Rentals is more efficient with each dollar of assets it utilizes for everyday operations. When we forecast the price of United Rentals, we are not concerned with any of United Rentals fundamentals. We simply determine the future price of United Rentals stock based solely on the trends of the past price. We use techniques such as the exponential moving average (EMA), oscillators, momentum and volume indicators, and others. Technical analysis is rather used for short-term strategies than the long-term ones. Our analysis's main assumption is that everything significant aboutUnited Rentals is already priced into the stock.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as United Rentals. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for United Rentals

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of United Rentals' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of United Rentals in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as United Rentals. Your research has to be compared to or analyzed against United Rentals' peers to derive any actionable benefits. When done correctly, United Rentals' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in United Rentals.

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. Please check the breakdown between United Rentals's total debt and its cash.

What do experts say?

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.
It is good to see analyst projects for United Rentals, but it might be worth checking our own buy vs. sell analysis

Bona fide gift to Jeffrey Fenton of 173 shares of United Rentals subject to Section 16

Legal trades by United Rentals insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
United insider trading alert for gift of common stock by Jeffrey Fenton, SVP Business Development, on 18th of February 2021. This event was filed by United Rentals Inc with SEC on 2021-02-18. Statement of changes in beneficial ownership - SEC Form 4. Jeffrey Fenton currently serves as senior vice president?business development of United Rentals [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving United Rentals Investor Appetite?

United Rentals currently demonstrates below-verage downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.38. However, we do advice investors to further question United Rentals expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Returns Breakdown

Return on Assets
Return on Investment
Return on Investment12.12
Return on Assets4.82
Return on Equity51.77
Return Capital0.0971
Return on Sales0.24

Another small drop for United Rentals

United Rentals current sortino ratio boosts over 0.12. As of the 26th of January, United Rentals has the Risk Adjusted Performance of 0.174, coefficient of variation of 573.81, and Semi Deviation of 2.51. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of United Rentals, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for United Rentals, which can be compared to its competition. Please validate United Rentals coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if United Rentals is priced more or less accurately, providing market reflects its prevalent price of 249.35 per share. Given that United Rentals has jensen alpha of 0.3825, we advise you to double-check United Rentals's current market performance to make sure the company can sustain itself at a future point.

The Bottom Line

While some firms within the rental & leasing services industry are still a little expensive, even after the recent corrections, United Rentals may offer a potential longer-term growth to stockholders. To sum up, as of the 26th of January 2021, our latest 30 days buy-hold-sell recommendation on the company is Strong Buy. We believe United Rentals is currently fairly valued with low probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of United Rentals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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