United Rentals is scored 77 for moat and 74 for management. The management score rests on a return on invested capital of 10.7% and a gross margin of 35.4% — figures that describe a business earning a respectable return on what it employs. Debt sits at 1.84x equity.
The price anchors are built on deliberately conservative assumptions. Growth is modelled at 13.5% a year, below the 14.0% actually measured over the last decade — the model caps growth rather than extrapolating a good run forwards. The exit multiple assumed is 20.9x. That produces an intrinsic value of $760.27, a 10-CAP price of $340.41 and a payback time price of $503.03, with the value zone set at the highest of the three, $503.03. Today's price of $1,034.11 is 106% above it.
The operating figures describe a business performing at a high level; the price asks for that performance to continue and then some. A margin of safety score of 37 is the measure of how little room that leaves for being wrong.
| Price | $1,034.11 |
| Market cap | $64.4B |
| P/E ratio | 25.0x |
| Return on invested capital | 10.7% |
| Gross margin | 35.4% |
| Debt to equity | 1.84x |
| Free cash flow yield | 1.3% |
| Growth rate used | 13.5% |
| Growth rate measured | 14.0% |
| Exit multiple assumed | 20.9x |
| Company | Moat | Buy price |
| Sunbelt Rentals Holdings Inc (SUNB) | 66 | $99.46 |
| Aercap Holdings Nv (AER) | 68 | $132.64 |
| U-Haul Holding Co-Non Voting (UHAL-B) | 32 | $29.36 |
| U-Haul Holding Co (UHAL) | 32 | $29.36 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of United Rentals rather than accepting ours.