URI – Market expectations are for Uniform ROA to decline, but management is confident about their location openings, customer projects, and leverage

January 15, 2021

  • United Rentals, Inc. (URI:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.4x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about specialty location openings, upcoming customer projects, and their leverage
  • Specifically, management is confident they will hit their target of 15 new specialty location openings in 2020, that they are purchasing assets to use in upcoming projects for big customers, and that they managed to de-lever their balance sheet. Furthermore, they are confident that recent fluctuations in performance were due to normal seasonality