URI – Market expectations are for Uniform ROA compression, but management is confident about fleet productivity, and their capex investments

• United Rentals, Inc. (URI) currently trades near corporate but above historical averages relative to Uniform earnings, with a 21.1x Uniform P/E (Fwd. V/E’).
• At these levels, the market is pricing in expectations for Uniform ROA to fade to 11%, accompanied by 5% Uniform asset growth.
  
• Meanwhile, analysts also expect Uniform ROA to compress to 11% in 2022, albeit with a stronger 14% Uniform asset growth.
  
• If sustained going forward, these levels would imply a stock price closer to $581, representing significant equity upside for the firm.
  
• Moreover, the firm’s most recent earnings call suggests management is confident about fleet productivity and their capex investments.