Buffett Brain · Research note
Score updated 22 Oct 2026
SUNB· Financial Services
Sunbelt Rentals Holdings
Sunbelt Rentals' 9.6% ROIC is below Buffett's 15% threshold, suggesting a limited moat in the competitive equipment rental industry.
Buffett fit
Partial fit
Owner
52
Durability
90
Management
54
Price
46
Score updated 22 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Sunbelt Rentals, we'd focus on maintaining its steady revenue growth of 10.67% CAGR while managing the debt load, with a net debt/EBITDA of 2.33.
The full reasoning comes with a free account.
Sunbelt Rentals has demonstrated durability with consistent profitability over the last five years and a minimal EPS decline of 0.54%.
The full reasoning comes with a free account.
Sunbelt's management has slightly reduced share count with a CAGR of -1.0% and a yield of 0.95%, suggesting a modest focus on shareholder returns.
The full reasoning comes with a free account.
The current of 23.5 and EV/ of 16.7 suggest a valuation that prices in future growth.
The full reasoning comes with a free account.
Free account
Read the full Sunbelt Rentals Holdings analysis free
- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
3 full analyses a week · no card needed
For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue CAGR of 10.67% over 5 years indicates strong top-line growth.
- 2 of 75.38% reflects efficient cost management.
- 3Consistent profitability over the last 5 years with minimal EPS decline.
- 4/Net Income ratio of 1.14 indicates high-quality earnings.
Concerns
5- 1 of 9.6% is below the 15% threshold, indicating a weaker competitive position.
- 2Net debt/EBITDA of 2.33 suggests is on the higher side.
- 3Interest coverage ratio of 4.8 is below the preferred 5x threshold, indicating potential vulnerability in downturns.
- 4 of 21.6% is significantly below sector top-quintile cutoff of 58.8%.
Price history
$78.87+6.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Sunbelt Rentals operates in the equipment rental industry, providing tools and machinery for construction and industrial markets. Its revenue is primarily driven by the North America-General Tool and Specialty segments, with a total revenue of $10.79 billion. The company maintains a of 75.38% and an of 21.6%. The unit economics suggest moderate profitability, but the industry's competitive nature limits .
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Financial Services
Free weekly email
Liked the read on SUNB? Get the next ones on Monday.
Every Monday: the stocks most of the seven investors newly agree on. One email, unsubscribe any time.
Research, not investment advice.
See the Buffett analysis of Sunbelt Rentals Holdings
The score, the checklist and the full reasoning open with a free account. You get 3 full analyses a week, and this stock is the first one. No card needed.
Create a free account3 full analyses a week · no card needed
Already have an account? Sign in