United Beneish M Score

URI
 Stock
  

USD 356.57  0.15  0.0421%   

This module uses fundamental data of United Rentals to approximate the value of its Beneish M Score. United Rentals M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Also, please take a look at United Rentals Piotroski F Score and United Rentals Altman Z Score analysis.
  
United Rentals Debt to Equity Ratio is most likely to decrease significantly in the upcoming years. The last year's value of Debt to Equity Ratio was reported at 1.62. United Rentals Calculated Tax Rate is most likely to decrease significantly in the upcoming years. The last year's value of Calculated Tax Rate was reported at 24.92. The current Receivables Turnover is estimated to increase to 7.02, while PPandE Turnover is projected to decrease to 13.64.
At this time, it appears that United Rentals is an unlikely manipulator. The earnings manipulation may begin if United Rentals' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by United Rentals executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of United Rentals' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.56
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.04Focus
Asset QualityN/AFocus
Expense Coverage1.11Focus
Gross Margin Strengs0.94Focus
Accruals Factor1.11Focus
Depreciation Resistance0.78Focus
Net Sales Growth0.79Focus
Financial Leverage Condition1.03Focus

United Rentals Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if United Rentals' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense568.5 M647.1 M
Fairly Down
Increasing
Slightly volatile
Revenues7.7 B9.7 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables684.2 M828 M
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net4.7 BB
Significantly Down
Increasing
Slightly volatile
Operating Income2.5 B2.3 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from OperationsB3.7 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current6.7 B8.2 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities2.8 B2.6 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities12 B14.3 B
Fairly Down
Increasing
Slightly volatile
Gross Margin37.3439.6562
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion1.2 B1.1 B
Significantly Up
Increasing
Slightly volatile
Debt Non Current5.4 B6.5 B
Significantly Down
Increasing
Slightly volatile
Debt Current579.7 M537.3 M
Significantly Up
Increasing
Slightly volatile
Total Debt5.5 BB
Significantly Down
Increasing
Slightly volatile
Assets Non Current7.8 B9.6 B
Significantly Down
Increasing
Slightly volatile
Current Assets1.8 B2.2 B
Significantly Down
Increasing
Slightly volatile
Total Assets16.2 B20.3 B
Significantly Down
Increasing
Slightly volatile

United Rentals Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between United Rentals' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards United Rentals in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find United Rentals' degree of accounting gimmicks and manipulations.

About United Rentals Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

801.54 Million

United Rentals Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 889.2 Million

United Rentals Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as United Rentals. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues6.64 B8.05 B9.35 B8.53 B9.72 B7.69 B
Total Assets15.03 B18.13 B18.97 B17.87 B20.29 B16.19 B
Current Assets1.77 B1.76 B1.84 B2.02 B2.15 B1.76 B
Total Liabilities11.92 B14.73 B15.14 B13.32 B14.3 B12 B
Current Liabilities1.67 B2.12 B2.2 B1.89 B2.6 B2.81 B
Operating Income1.51 B1.95 B2.15 B1.8 B2.28 B2.46 B

United Rentals ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, United Rentals' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to United Rentals' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About United Rentals Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze United Rentals's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of United Rentals using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of United Rentals based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut. United Rentals operates under Rental Leasing Services classification in the United States and is traded on New York Stock Exchange. It employs 20400 people.

United Rentals Investors Sentiment

The influence of United Rentals' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in United. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to United Rentals' public news can be used to forecast risks associated with investment in United. The trend in average sentiment can be used to explain how an investor holding United can time the market purely based on public headlines and social activities around United Rentals. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
United Rentals' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for United Rentals' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average United Rentals' news discussions. The higher the estimated score, the more favorable is the investor's outlook on United Rentals.

United Rentals Implied Volatility

    
  43.72  
United Rentals' implied volatility exposes the market's sentiment of United Rentals stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if United Rentals' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that United Rentals stock will not fluctuate a lot when United Rentals' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards United Rentals in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, United Rentals' short interest history, or implied volatility extrapolated from United Rentals options trading.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Also, please take a look at United Rentals Piotroski F Score and United Rentals Altman Z Score analysis. You can also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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When running United Rentals price analysis, check to measure United Rentals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy United Rentals is operating at the current time. Most of United Rentals' value examination focuses on studying past and present price action to predict the probability of United Rentals' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move United Rentals' price. Additionally, you may evaluate how the addition of United Rentals to your portfolios can decrease your overall portfolio volatility.
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Is United Rentals' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of United Rentals. If investors know United will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about United Rentals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.54
Market Capitalization
24.7 B
Quarterly Revenue Growth YOY
0.18
Return On Assets
0.0893
Return On Equity
0.33
The market value of United Rentals is measured differently than its book value, which is the value of United that is recorded on the company's balance sheet. Investors also form their own opinion of United Rentals' value that differs from its market value or its book value, called intrinsic value, which is United Rentals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because United Rentals' market value can be influenced by many factors that don't directly affect United Rentals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between United Rentals' value and its price as these two are different measures arrived at by different means. Investors typically determine United Rentals value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, United Rentals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.