Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>The leader in rental equipment industry offers attractive returns, in spite of short-term risk of recession.</li>
<li>United Rentals' well thought out growth strategy has created an important competitive advantage.</li>
<li>High free cash flow allows the management to increase shareholder distributions, while also reinvesting back into the business, according to the company.</li>
</ul>


The leader in rental equipment industry offers attractive returns, in spite of short-term risk of recession.
United Rentals' well thought out growth strategy has created an important competitive advantage.
High free cash flow allows the management to increase shareholder distributions, while also reinvesting back into the business, according to the company.


United Rentals: This Capital Intensive Business Deserves Attention

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>Major aerial work platform (AWP) manufacturers (Terex, Oshkosh) and rental company (United Rentals) in the US provide bullish guidance on 2023E outlook after reporting their 2022 results.</li><li>Key takeaways: (1) AWP manufacturers saw strong order flow with backlog visibility of &gt;12 months; (2) The mega projects, which are less macro reliant, will provide both rental companies and AWP manufacturers with growth certainty over the coming years; (3) manufacturers’ margin improvement trend will continue despite the fact that supply chain will remain a constraint this year, suggesting strong pricing power.</li><li>All these reaffirm our positive stance on the AWP sector this year. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Major aerial work platform (AWP) manufacturers (Terex, Oshkosh) and rental company (United Rentals) in the US provide bullish guidance on 2023E outlook after reporting their 2022 results.Key takeaways: (1) AWP manufacturers saw strong order flow with backlog visibility of &gt;12 months; (2) The mega projects, which are less macro reliant, will provide both rental companies and AWP manufacturers with growth certainty over the coming years; (3) manufacturers’ margin improvement trend will continue despite the fact that supply chain will remain a constraint this year, suggesting strong pricing power.All these reaffirm our positive stance on the AWP sector this year. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Construction Machinery – Upbeat Guidance from US AWP Manufacturers

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Credit

<ul><li>United Rentals is one of the largest equipment rental companies in the world, known for renting out construction, aerial and industrial equipment, general tools and light equipment.</li><li>The company is operating in a favorable operational climate and its fleet productivity has been increasing as per recent results, resulting in a higher rental revenue.</li><li>The demand for its equipment rental services is relatively high, even though some parts of the economy are slowing down.</li></ul>

United Rentals is one of the largest equipment rental companies in the world, known for renting out construction, aerial and industrial equipment, general tools and light equipment.The company is operating in a favorable operational climate and its fleet productivity has been increasing as per recent results, resulting in a higher rental revenue.The demand for its equipment rental services is relatively high, even though some parts of the economy are slowing down.

United Rentals Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

<ul><li>This is our first report on United Rentals, one of the largest equipment rental companies in the world, known for renting out construction, aerial and industrial equipment, general tools and light equipment.</li><li>The company’s fleet productivity increased by roughly 9%, while rental revenue increased by 20% year over year in the last quarter.</li><li>The demand for its equipment rental services is relatively high, even though some parts of the economy are slowing down.</li></ul>

This is our first report on United Rentals, one of the largest equipment rental companies in the world, known for renting out construction, aerial and industrial equipment, general tools and light equipment.The company’s fleet productivity increased by roughly 9%, while rental revenue increased by 20% year over year in the last quarter.The demand for its equipment rental services is relatively high, even though some parts of the economy are slowing down.

United Rentals Inc.: Initiation of Coverage – Acquisition-Led Growth & Other Drivers

H&E Equipment Services / Equity Bottom-Up

<ul><li>One year later, H&amp;E Equipment shares still look attractive, in spite of the exceptionally strong performance.</li><li>Tailwinds for the rental equipment industry remain strong and HEES is gearing up to accelerate its organic growth strategy.</li><li>Becoming a pure play rental company will have significant implications for the company's utilization rates and margins.</li></ul>

One year later, H&amp;E Equipment shares still look attractive, in spite of the exceptionally strong performance.Tailwinds for the rental equipment industry remain strong and HEES is gearing up to accelerate its organic growth strategy.Becoming a pure play rental company will have significant implications for the company's utilization rates and margins.

H&E Equipment: Catching Up With The Leader

United States

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.

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United Rentals (URI US)

United Rentals: This Capital Intensive Business Deserves Attention

High free cash flow allows the management to increase shareholder distributions, while also reinvesting back into the business, according to the...

Vladimir Dimitrov, CFA

China Construction Machinery – Upbeat Guidance from US AWP Manufacturers

Major aerial work platform (AWP) manufacturers (Terex, Oshkosh) and rental company (United Rentals) in the US provide bullish guidance on 2023E...

CMB International

United Rentals Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

United Rentals is one of the largest equipment rental companies in the world, known for renting out construction, aerial and industrial equipment,...

Baptista Research

United Rentals Inc.: Initiation of Coverage – Acquisition-Led Growth & Other Drivers

This is our first report on United Rentals, one of the largest equipment rental companies in the world, known for renting out construction, aerial...

Baptista Research

H&E Equipment: Catching Up With The Leader

One year later, H&E Equipment shares still look attractive, in spite of the exceptionally strong performance. Tailwinds for the rental...

Vladimir Dimitrov, CFA

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