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SUNB:NYSESunbelt Rentals Holdings, Inc. Analysis

Data as of 2026-05-03 - not real-time

$76.92

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Sunbelt Rentals is trading at $76.92, comfortably above its 20‑day SMA ($70.84) and 200‑day SMA ($70.19), while still below the 52‑week high of $78.05, indicating a bullish momentum that is supported by a 60.8 RSI and a bullish MACD histogram of 0.96. Technical indicators point to continued upside, with a modest 4.3% upside potential to the DCF‑derived fair value of $121.53 and a growing volume trend. Fundamentally, the stock appears undervalued: its PE of 23.6 is well below the industry average of 31.2, and the forward PE of 18.1 suggests earnings acceleration. The company generates robust cash flow ($2.15 B operating, $4.05 B free) and maintains a high gross margin of 94.8%, yet carries a high debt‑to‑equity of 137, mitigated by strong cash generation. A recent share‑repurchase program signals management confidence, and a 2.38% dividend yield with a zero payout ratio indicates sustainable income for shareholders. Overall, the blend of bullish technicals, attractive valuation, and solid cash generation supports a positive outlook across horizons.

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 7/10

Key Factors

  • Bullish technical setup (price above SMAs, RSI 60+, MACD bullish)
  • Undervalued relative to DCF and peer PE multiples
  • Increasing volume supporting momentum

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Sustainable dividend yield of 2.38% with strong cash flow
  • Share repurchase program indicating confidence from management
  • Stable operating margins and high gross margin

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Long‑term DCF upside of ~58% suggesting significant undervaluation
  • Resilient rental demand across construction, green energy, and emergency response sectors
  • Robust free cash flow enabling debt reduction and shareholder returns

Key Metrics & Analysis

Financial Health

Revenue Growth2.70%
Profit Margin12.68%
P/E Ratio23.6
ROE18.14%
ROA6.71%
Debt/Equity137.45
P/B Ratio4.2
Op. Cash Flow$2.2B
Free Cash Flow$4.0B
Industry P/E31.2

Technical Analysis

TrendBullish
RSI60.8
Support$61.03
Resistance$78.05
MA 20$70.84
MA 200$70.19
MACDBullish
VolumeIncreasing
Fear & Greed Index91.09

Valuation

Fair Value$121.53
Target Price$80.23
Upside/Downside4.30%
GradeUndervalued
TypeValue
Dividend Yield2.38%

Risk Assessment

Beta1.33
Volatility55.04%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.