United Rentals’ business focus is on equipment rental. It is considered the world’s leader in the equipment rental industry, with 836 rental locations servicing construction and industrial companies. The company had quite a diverse customer base, with the largest customer accounting for only 1% of the revenue. Its top ten customers represented around only 5% of its total sales. In 2013, United Rentals expected the time utilization for the business of around 68%, with the EBITDA staying in the range of $2.25 billion to $2.35 billion. The free cash flow for the full year 2013 would come in at $400 million to $500 million. United Rentals is trading at around $56.30 per share, with the total market cap of $5.30 billion. The market values United Rentals at 11.43 times EV/EBITDA and 0.56 times its PEG.
My Foolish take
All of those three car and equipment rental businesses could fit well into investors’ long-term portfolios. With their market leading positions, low PEG ratio and consistent cash flow generation, their potential growth could benefit investors in a long run.
The article Car and Equipment Rental Businesses Look Interesting originally appeared on Fool.com and is written by Anh HOANG.
Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.