Sunbelt Rentals Holdings, Inc.
SUNB
$63.09
-2.11%
Sunbelt Rentals Holdings, Inc. is a major equipment rental company operating primarily in the US, Canada, and the UK. It is the second-largest player in the US market, leveraging its extensive store network and diversified fleet to serve a broad customer base increasingly favoring rental over ownership.…
SUNB
Sunbelt Rentals Holdings, Inc.
$63.09
Investment Opinion: Should I buy SUNB Today?
Based on a synthesis of the data, the objective assessment is a Hold. While the fundamental profile is solid and analyst targets are compelling, the severe technical breakdown, negative momentum, and emerging signs of slowing growth advise caution. The current price near the 52-week low may offer a better entry point for long-term investors, but the near-term outlook is clouded, warranting a wait-and-see approach until the price stabilizes or fundamentals re-accelerate.
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SUNB 12-Month Price Forecast
The data presents a mixed picture. Strong profitability and analyst support are offset by clear technical deterioration and slowing growth. The base case of a gradual recovery towards fair value is most probable, but the path is fraught with volatility given the stock's high beta and economic sensitivity.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Sunbelt Rentals Holdings, Inc.'s 12-month outlook, with a consensus price target around $80.50 and implied upside of +27.6% versus the current price.
Average Target
$80.50
12 analysts
Implied Upside
+27.6%
vs. current price
Analyst Count
12
covering this stock
Price Range
$62 - $115
Analyst target range
Wall Street analysts maintain a consensus 'Buy' recommendation with a mean rating of 2.33. The average 12-month price target is $80.50, representing a potential upside of approximately 24% from the current price of $65.09. The target range is wide, from a low of $62.0 to a high of $115.0, indicating differing views on the company's outlook.
Bulls vs Bears: SUNB Investment Factors
SUNB presents a classic value vs. momentum conflict. Fundamentally, it is a profitable market leader with analyst support and a reasonable valuation. However, the stock is in a clear downtrend with weakening price action and signs of slowing operational growth, creating near-term headwinds.
Bullish
- Strong Analyst Consensus: 12 analysts rate SUNB a 'Buy' with a $80.50 average target, implying 24% upside.
- Solid Profitability Metrics: High ROE of 19.7% and robust operating cash flow demonstrate efficient capital use.
- Attractive Forward Valuation: Forward P/E of 14.8 is moderate, suggesting potential value if growth resumes.
- Market Leadership & Trend: Second-largest US player benefits from structural shift towards equipment rental.
Bearish
- Weak Technical Performance: Stock down 11.8% in a month, underperforming market with poor relative strength.
- Slowing Revenue Growth: Latest quarterly revenue grew only 2.7% YoY, indicating a potential slowdown.
- High Financial Leverage: Debt-to-equity ratio of 1.35 increases risk in a rising interest rate environment.
- Margin Compression: Net margin declined to 11.0% in Q3 from higher levels in prior quarters.
SUNB Technical Analysis
The stock's overall trend has been negative and volatile over the past month, with the price declining from $73.79 on March 2 to $65.09 on March 31, representing an 11.8% drop. This underperformance is significantly worse than the broader market, as indicated by a -6.54 relative strength over one month. Short-term performance shows high volatility, with the price swinging between a high near $75.52 and a low of $63.31 within the provided data period, ending the month down sharply. The current price of $65.09 sits near the lower end of its 52-week range of $61.85 to $76.77, approximately 15% below the yearly high, indicating the stock is in a weakened technical position.
Beta
1.65
1.65x market volatility
Max Drawdown
-16.5%
Largest decline past year
52-Week Range
$62-$77
Price range past year
Annual Return
-14.5%
Cumulative gain past year
| Period | SUNB Return | S&P 500 |
|---|---|---|
| 1m | -13.7% | -3.6% |
| 3m | -14.5% | -4.0% |
| 6m | -14.5% | -2.0% |
| 1y | -14.5% | +16.2% |
| ytd | -14.5% | -3.8% |
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SUNB Fundamental Analysis
Revenue for the latest quarter (Q3 2026) was $2.637 billion, showing modest year-over-year growth of 2.7%. Profitability remains solid with a net margin of 11.0% for the quarter, though it has declined from higher levels seen in prior quarters such as Q2 2025 (14.4%). The company's financial health shows a debt-to-equity ratio of 1.35, indicating a leveraged balance sheet, but it is supported by strong operating cash flow, which was $1.583 billion in the latest quarter. Operational efficiency is demonstrated by a robust return on equity (ROE) of 19.7% and a return on assets (ROA) of 6.7%, reflecting effective use of its capital and assets to generate profits.
Quarterly Revenue
$2.6B
2026-01
Revenue YoY Growth
+0.02%
YoY Comparison
Gross Margin
+0.37%
Latest Quarter
Free Cash Flow
$3.5B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is SUNB Overvalued?
Given the company's positive net income, the primary valuation metric used is the forward P/E ratio, which stands at 14.8. This suggests the market is valuing the company's future earnings at a moderate multiple. Peer comparison data for specific ratios like P/E or P/S is not available in the provided inputs, making a direct industry comparison impossible at this time.
PE
0.0x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 0x~0x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
2.1x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk is macroeconomic sensitivity. As an equipment rental company, SUNB's performance is tied to construction and industrial activity, which can decline during an economic slowdown. This is reflected in the recent deceleration of revenue growth to 2.7%. Financial risk is elevated due to a leveraged balance sheet (Debt/Equity of 1.35), making the company more vulnerable to rising interest costs and potential refinancing challenges. Operational risks include intense competition in the fragmented rental industry and potential for further margin pressure from wage inflation or fleet maintenance costs. The stock's high beta of 1.65 indicates it is significantly more volatile than the broader market, amplifying downside moves during risk-off periods, as seen in its recent sharp decline.
FAQ
Key risks include: 1) Economic cyclicality: Revenue growth slowed to 2.7% last quarter. 2) High financial leverage: A debt-to-equity ratio of 1.35 increases vulnerability to interest rate hikes. 3) Market sentiment: The stock has a high beta of 1.65 and severe negative momentum, underperforming the S&P 500 by over 6% in the past month. 4) Margin pressure, as net income margin has declined from prior peaks.
The 12-month outlook is mixed with a neutral base case. Analysts forecast an average price of $80.50 (range $62-$115). Our synthesis projects a 50% probability for a base case range of $70-$80.50, a 30% chance for a bullish run to $115, and a 20% chance of a bearish decline to test the 52-week low near $62. The forecast hinges on economic conditions and the company's ability to stabilize growth.
Based on forward earnings, SUNB appears reasonably valued or slightly undervalued. Its forward P/E ratio of 14.8 is moderate. The current price of $65.09 is 15% below its 52-week high and 19% below the analyst average target, suggesting the market may be undervaluing its future earnings potential. However, this discount reflects justified concerns about slowing growth and high leverage.
SUNB is a Hold at its current level. While its fundamentals are solid with a 19.7% ROE and a forward P/E of 14.8, the stock is in a pronounced downtrend, having fallen 11.8% in a month. The 24% upside to the average analyst target of $80.50 is attractive, but buying now requires a high tolerance for volatility and a long-term perspective to realize that value.
SUNB is more suitable for long-term investors. The short-term outlook is clouded by high volatility and negative price momentum. Long-term investors can look past this noise to the company's strong market position, the rental-over-ownership trend, and solid cash flow generation. A long horizon allows time for the fundamental value, supported by a 24% analyst upside, to be realized.