Valuation
Value $256 Price $135. Underpriced by 47%.
현재 시장기대치와 스토리
현재 가격에 반영된 가정
매출성장 향후 5년간 연 0% , 타깃 영업이익률 18%(Converge 5년) . 건설경기 우려, 수익성 악화 예상.
스토리
성장 3%, 이익률25%. 2010년 이전에는 영업이익률 10%대였지만 2010년 이후에는 25%유지. M&A로 인한 시장 지배력 강화.
시뮬레이션
추후 해볼 것.
Pricing
- PE: 8.1
- PB: 2.6
- P/TangB:
- PS: 1.1
- P/CF: 3.5
- P/FCF: 15.6
- EV/Sales: 2.4
- EV/EBITDA: 5
- EV/EBIT: 10.2
- EV: 22.2B
기타
소스
Value Screen Feb2020
자료(시트)
Description
Company Description
United Rentals, Inc., through its subsidiary, is an equipment rental company operating a network of locations in the United States and Canada. The Company serves the construction industry, industrial and commercial concerns, homeowners, and other individuals.
Extended Company Description (Source: Hoover’s Inc., a Dun & Bradstreet Company)
OVERVIEW
United Rentals considers itself the #1 commercial and construction equipment renter in the world, serving customers in the commercial, infrastructure, industrial, and residential sectors. It operates through a network of nearly 1,200 locations in the US, Canada, and Europe and provides about 3,800 equipment items — everything from general to heavy construction and industrial equipment to hand tools, special-event items (such as aerial towers), power (diesel generators) and HVAC equipment, and trench-safety equipment. It also sells new and used equipment, as well as contractor supplies and parts. United Rentals’ original equipment cost (the initial purchase value of all rental equipment) is $14 billion. The US accounts for more than 90% of total sales.
Operations
United Rentals operates two business segments: General Rental and the Trench, Power, and Fluid Solutions.
General Rental generates around 80% of sales and rents out construction, aerial and industrial equipment, general tools and light equipment, and related services.
The Trench, Power, and Fluid Solutions segment rents out specialty construction products. It offers trench safety equipment such as trench shields, aluminum hydraulic shoring systems, and construction lasers; power and HVAC equipment such as portable generators, heating and cooling equipment, and electric distribution equipment; and fluid solutions equipment for fluid containment, transfer, and treatment. The segment accounts for the remaining 20% of revenue.
Equipment rentals make up about 85% of revenue. Across both segments the company sells new and used rental equipment which accounts for about 10% of total revenue. It also sells construction consumables, tools, small equipment, and safety supplies, and offers maintenance services and parts for customer-owned equipment.
Geographic Reach
Of United Rentals’ nearly 1,200 rental locations, more than 1,000 are in the US, about 150 are in Canada, and about 10 are in Europe.
United Rentals’ General Rentals division comprises eleven US geographic regions: Carolinas, Gulf South, Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Mid Central, Midwest, Northeast, Pacific West, South, Southeast, and Western Canada.
Sales and Marketing
United Rentals’ customers include construction and industrial companies, manufacturers, utilities, municipalities, and homeowners. The Trench, Power, and Fluid Solutions segment serves primarily construction companies active in infrastructure projects, municipalities, and industrial companies.
United Rentals markets its products and services through sales staff at the company’s branches and customer care centers; account managers dedicated to large customer accounts; its online rental platform; and advertising (trade publications, yellow pages, the internet, radio, and direct mail).
Financial Performance
Except for a slight dip in 2016, United Rental’s revenue has seen steady growth the last five years, rising more than 40% between 2014 and 2018. In recent years, growth has been fueled by acquisitions and organic growth in equipment rental revenue amid stronger demand in core markets.
Sales in 2018 increased more than 21% to $8 billion compared to $6.6 billion in 2017. Growth in 2018 was driven by a 19% increase in the amount of equipment on rent, which was in part due to two acquisitions in 2017 (NES and Neff) and two more in the second half of 2018 (BakerCorp and BlueLine). Sales were also boosted by a 21% uptick in rental equipment sales.
Net income decreased 19% to $1.1 billion in 2018 compared to 2017, primarily due to costs associated with acquisitions.
Cash at the end of 2018 was $43 million, a decrease of $309 million from the prior year. Cash from operations contributed $2.85 billion to the coffers, while investing activities used $4.55 billion, mainly for acquisitions and purchases of rental equipment. Financing activities brought in $1.4 billion, primarily in the form proceeds from debt.
Strategy
Because of its size, United Rentals rallies more resources compared to smaller businesses. Competitive advantages include more purchasing leverage, a wider range of equipment and services, and the more convenient movement of assets between locations. It primarily grows through acquisitions. In 2018 the company spent nearly $3 billion on two major acquisitions (BakerCorp and BlueLine) at a time when equipment rental demand was booming. United Rental’s size and breadth of offerings helped it outpace overall US equipment rental industry growth by more than two percentage points in 2018.
The addition of BakerCorp expanded United Rental’s trench, power, tools, and fluid solutions footprint and created cross-selling opportunities for those products throughout United Rental’s network. The company opened about 25 specialty rental branches/tool hubs in 2019 to leverage its recent expansion and offer more comprehensive solutions to customers.
Mergers and Acquisitions
In late 2018, the company closed on two acquisitions. United Rentals of Canada bought WesternOne Rentals and Sales LP for about $90.4 million. WesternOne is a leading equipment rental supplier in Western Canada serving industrial and general construction markets. Around the same time, the company completed the $2.1 billion acquisition of BlueLine Rental, a North American equipment rental company with operations in 25 US states, Canada, and Puerto Rico.
Earlier in 2018, United Rentals acquired BakerCorp International Holding for about $715 million. BakerCorp is a provider of tank, pump, filtration and trench shoring rental solutions. The deal enhanced United Rentals’ fluid storage and transfer and treatment offerings. It also added 46 branches in North America and 11 in Europe.
Company Background
Bradley Jacobs had made a fortune in the garbage business, having used United Waste Systems as a roll-up company to buy small trash-hauling firms in that fragmented industry. Flush with cash after he sold United Waste Systems in 1997 to USA Waste Services (now Waste Management), Jacobs launched the same roll-up strategy to consolidate the equipment-rental industry. He and his management team bought six leasing companies and started United Rentals. The company, which went public in 1997, had acquired 38 rental companies in 20 states by mid-1998.
HISTORY
Bradley Jacobs had made a fortune in the garbage business, having used United Waste Systems as a roll-up company to buy small trash-hauling firms in that fragmented industry. Flush with cash after he sold United Waste Systems in 1997 to USA Waste Services (now Waste Management), Jacobs launched the same roll-up strategy to consolidate the equipment-rental industry. He and his management team bought six leasing companies and started United Rentals. The company, which went public in 1997, had acquired 38 rental companies in 20 states by mid-1998.
