If You Invested $1000 in United Rentals 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in United Rentals (URI) ten years ago? It may not have been easy to hold on to URI for all that time, but if you did, how much would your investment be worth today?
United Rentals' Business In-Depth
With that in mind, let's take a look at United Rentals' main business drivers.
Headquartered in Stamford, CT, United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of 1,288 rental locations in United States, Canada and Europe. Moreover, it operates in 49 states and every Canadian province. The company offers 4,300 classes of equipment for rent at a total original equipment cost (“OEC”) of $15.79 billion (as of December 2021). The company’s customer base includes construction and industrial companies, utilities, municipalities, government agencies, independent contractors and homeowners and other individuals that use equipment for projects that range from simple repairs to major renovations. The company’s principal products and services are equipment rental, sale of rental equipment, new equipment, contractor supplies, services and other.
United Rentals serves customers as a single-source solution, provided through two business segments: General Rentals and Specialty or Trench, Power and Fluid Solutions.
General Rentals (accounted for 78.5% of total revenues in 2020) includes the rental of construction, aerial and industrial equipment, general tools and light equipment, along with related services and activities. The segment includes the rental of the following: i) general construction and industrial equipment ii) aerial work platforms and iii) general tools and light equipment. The general rentals segment caters to 11 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 — and operates throughout the United States and Canada.
Specialty (21.5%) includes the rental of specialty construction products and related services like trench safety equipment, power and HVAC equipment, and fluid solutions equipment.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in United Rentals a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in March 2012 would be worth $8,218.34, or a 721.83% gain, as of March 22, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 218% and the price of gold increased 13.22% over the same time frame in comparison.
Going forward, analysts are expecting more upside for URI.
United Rentals’ fourth-quarter 2021 earnings and revenues beat the respective Zacks Consensus Estimate by 6.9% and 0.6%, and improved 46.6% and 21.8% year over year, respectively. For 2021, earnings and revenues grew 26.5% and 13.9%, respectively. The results were driven by higher rental revenues, fleet productivity and absorptions. Fleet productivity was up 10.4% for 2021 from the prior year, depicting better fleet absorption. Even its 2022 guidance exhibits broad-based growth across the company’s verticals, with persistent growth opportunities for non-residential and industrials verticals including refining, metals and minerals and power projects. Shares of United Rentals have outperformed the industry over the past year. Yet, unprecedented supply-chain disruptions are headwinds.
The stock is up 11.54% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2022. The consensus estimate has moved up as well.
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