| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 80 | 22.0x | 17.8x | Top tier | |
Growth | 40 | 66.4% | 7.1% | Bottom tier | |
Quality | 79 | 8.9% | 4.5% | Top tier | |
Safety | 63 | 2.1x | 2.6x | Around median | |
Capital Return | 65 | 1.51% | 2.12% | Around median | |
Momentum | 65 | — | 2.9% | Around median | |
Sentiment | 61 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sunbelt Rentals operates an equipment rental and specialty solutions platform through three reported businesses: North America General Tool, North America Specialty, and the UK business. It generates revenue from fleet rentals and expertise- and labor-intensive ancillary services, such as delivery, installation, power and HVAC management, water pumping, scaffolding, ground protection, and temporary fencing, as well as used equipment sales. The Power of Sunbelt strategy connects General Tool, Specialty, and modular solutions to increase its share of customer spending and sell multiple services within a single relationship.
In Q1 FY2027, ended July 31, 2026, total revenue rose 11.2% to $3.1 billion, and rental revenue grew 12.5% to $2.9 billion. Gross profit according to EDGAR data was approximately $1.2 billion, and net income was $438 million, while adjusted EPS rose 20.4% to a first-quarter record of $1.18; EPS according to EDGAR was $1.07. Adjusted operating profit increased 13.8% to $759 million, with its margin expanding 60 basis points to 24.4%.
North America General Tool revenue reached $1.7 billion, up 5.7%, while Specialty revenue jumped 24.5% to $1.1 billion, making it the fastest growth driver. The UK generated revenue of $240 million and an adjusted EBITDA margin of 25.4%. At the group level, adjusted EBITDA rose 8.7% to $1.3 billion, but its margin declined from 43.2% to 42.2% due to faster growth in ancillary services and the Specialty mix.
The average analyst price target is $89.4, within a range of $80 to $96, and the stock carries a consensus “Buy” rating; the average is also slightly above the top of the 52-week range of $86.68, compared with a low of $61.03. A P/E ratio is not available in the data, so the assessment cannot be anchored to a comparable earnings multiple, while the breadth of the target range reflects meaningful disagreement over how much value to assign to the guidance increase and rapid Specialty growth versus pressure on EBITDA margins and higher capital expenditure.
Figures in the text are as of 2026-09-10; the live price is shown at the top of the page.
Sunbelt Rentals generated revenue of approximately $3.1 billion in Q1 FY2027, ended July 31, 2026, up 11.2%, while rental revenue increased 12.5% to $2.9 billion. Net income according to EDGAR was approximately $438 million, and gross profit was $1.2 billion. Adjusted EPS also rose 20.4% to $1.18, compared with EPS according to EDGAR of $1.07. Adjusted operating profit increased 13.8% to $759 million, and its margin expanded to 24.4%.
Management raised guidance after strong and broad-based growth in Q1 FY2027, particularly among large and strategic customers and in megaprojects and power. It now expects total revenue growth of between 6% and 9% and rental revenue growth of between 7% and 10%. It also raised its adjusted EBITDA forecast to $4.92–$5.12 billion, while expecting the full-year margin to remain close to the prior year. It also raised net rental capital expenditure to $2.4–$2.8 billion to fund opportunities tied to specific customer demand.
North America Specialty generated revenue of $1.1 billion in Q1 FY2027, up 24.5%, and its rental revenue grew 25.3%. Dollar utilization improved 300 basis points to 77%, with strength in Power & HVAC, power management, climate control, pumping, and scaffolding. The Aries acquisition added approximately 300 basis points to rental revenue growth in the business, while its integration generated 669 cross-selling opportunities worth $24 million in a single quarter. Conversely, the business's adjusted EBITDA margin declined from 48% to 45.8% due to faster growth in labor-intensive ancillary revenue.
Automated analysis for informational purposes only — not investment advice.
Management estimated that FIFA World Cup 2026 business added approximately 250 basis points to rental revenue growth in Q1 FY2027. Approximately 75% to 80% of this revenue was allocated to Specialty, while the remainder went to General Tool. Management confirmed that the impact enhanced the adjusted operating profit margin, with a negligible effect on rental pricing. This demonstrates the company's ability to combine equipment and specialty services to serve large events, but it represents a time-specific contribution that should not automatically be extrapolated to every subsequent quarter.
According to management's presentation on September 9, 2026, data centers represent 13% and semiconductors 3% of the megaproject portfolio, or 16% combined. The remainder of the portfolio includes diverse areas such as power, infrastructure, transportation, and entertainment facilities. In addition, 80% of megaprojects are in preparation, ramp-up, or active phases, compared with 20% in the wind-down phase. The company acknowledged stop-work decisions at some data center-related sites, but noted that a number of projects began before those restrictions took effect.
Free cash flow was only $70 million in Q1 FY2027 after net rental capital expenditure rose 78% to $682 million. Conversely, the company ended July 2026 with net leverage of 1.8 times and liquidity of approximately $3.8 billion, within its long-term target leverage range of one to two times. During the quarter, it issued $1.2 billion of senior unsecured notes, comprising $450 million at 4.95% and $750 million at 5.65%. Therefore, improvement in cash flow during the remainder of FY2027 depends on converting the high level of fleet investment into strong revenue and utilization as management expects.
