QualityDipStocks / Consumer Discretionary · Diversified Commercial Services
Sunbelt Rentals SUNB
Not in a dip: trading near its 52-week high.
A quality company trading well above our fair value estimate.
Key levels
Every level vs today’s $83.63
- Fair value est.base case$62.45−25.3%
- 52-wk lowlowest close, 1 year$63.09−24.6%
- PriceFri Oct 30 close$83.63you are here
- 52-wk highhighest close, 1 year$86.06+2.9%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, SUNB’s free cash flow would need to grow about 8% a year for five years; our estimate uses 3%.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
Cash returnsShare count down 4.1% in a year: $1.1B of buybacks over 12 months.
ProfitabilityReturn on equity of 18% over the last 12 months.
Cash returnsDividend yield of 2.2% ($771M paid over 12 months, 55% of earnings).
ValuationEV/EBITDA of 9.3×, below the 12.8× median for the 113 Consumer Discretionary companies we cover.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $62.45, 25% below the price.
ProfitabilityOperating margin narrowed to 19.6% in FY2026 from 23.1% in FY2024 (SEC filings).
GrowthDiluted EPS fell 11% to $3.15 in FY2026.
GrowthSales grew only 1.3% a year from FY2024 to FY2026.
ProfitabilityReturn on invested capital of 11%, below the 16% median for the 114 Consumer Discretionary companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on Sunbelt Rentals in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Diversified Commercial Services
All fundamentals
P/E 24.7 · ROE 18%
Valuation
- P/E
- 24.7×Consumer Discretionary median 20.9×
- Price / FCF
- n/anot reported in its SEC filings
- FCF yield
- n/anot reported in its SEC filings
- EV / EBITDA
- 9.3×
- Price / sales
- 3.00×
- Price / book
- 4.62×
- Market cap
- $34.4Bprice × diluted shares
- Enterprise value
- $42.9B
Growth
- Revenue, 12 months
- $11.5B
- Sales growth, 12 months
- n/ano year-ago 12-month revenue
- Sales growth, 3 yrs
- +1.3%/yrfrom FY2024
- Diluted EPS, 12 months
- $3.35
- EPS growth, last FY
- −11.3%
- Net income, 12 months
- $1.4B
- Net income growth
- n/anot reported in its SEC filings
Profitability
- Gross margin
- 38.5%
- Operating margin
- 19.8%
- Net margin
- 12.1%
- FCF margin
- n/anot reported in its SEC filings
- Return on equity
- 18%
- Return on invested capital
- 11%
Balance sheet
- Cash & short-term inv.
- $32M
- Total debt
- $8.6B
- Net cash
- −$8.5B
- Debt / equity
- 1.15×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- n/anot reported in its SEC filings
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 2.24%$771M paid
- Payout ratio
- 55%
- Buybacks, 12 months
- $1.1B3.3% of market cap
- Share count, 1 year
- −4.1%diluted shares vs a year ago
- Stock-based comp
- $83M
Trailing 12 months to Jul 31, 2026; balance sheet at Jul 31, 2026. From Sunbelt Rentals’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $62.45 · FCF value $73.12
Assumes 3.0% growth for 5 years (revenue grew 1.3% a year FY24–FY26; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $3.94 a share (trailing 12 months to Jul 31, 2026), from the 10-Q filed Sep 9, 2026. Capex: rental fleet + other capex, less rental-fleet sale proceeds. Net debt $8.5B, not deducted.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
5 days +6.5%
The business
FCF $1.2B · Sales +11%
- Free cash flow, 12 months$1.2B
- Free-cash-flow yield3.5%
- Free-cash-flow margin10%
- Gross margin38%
- Operating margin20%
- Return on invested capital11%
- Return on equity18%
- Sales growth (latest quarter vs year-ago quarter)+11%
- Net debt / EBITDA2.5×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when SUNB fires a reversal signal
One text when a published rule fires on SUNB or any of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.