Filing Flows › Companies › Sunbelt Rentals Holdings › Analysis traps
Sunbelt Rentals Holdings (SUNB): analysis traps
Where its figures could mislead a reader, and what to check before taking them at face value · Data: Q1 FY27, to Jul 31, 2026, filed Sep 9, 2026; rules v1.1
Sunbelt Rentals Holdings (SUNB): 0 rules of 10 triggered on the filings to Jul 31, 2026. 1 to review; 4 with insufficient data; 2 not applicable. Each is a question to verify, with the normal explanation that would produce the same figures.
Check these first
A precise DCF value = the true value To review · confidence high
The DCF's point value is 62.50 a share (price 77.03); 49% of it is the terminal value, a number about years no one has seen. Moving revenue growth (each year) by ±5 pts alone takes it from 48.99 to 78.45; across every method the research ran the range is 17 to 251. The value is a range; the decimals are not information.
Innocent reading: A stable, mature business with a narrow range of outcomes, where the point value is a fair summary.
Every rule
A01 FCF growth = the business improved Insufficient data
fewer than two fiscal years with operating cash flow and capital expenditure on file
A07 Stock compensation added back = no economic cost Not triggered confidence high
Stock compensation is 0.7% of revenue: small enough that adding it back changes little.
The figures and how they are read
| Fiscal year | FY26 |
| Stock compensation | $80M |
| Revenue | $11.2B |
| SBC / revenue | +0.7% |
| Buybacks | $1.4B |
| Buybacks / SBC | 17.7 |
| Diluted shares, year before | 437.0M shares |
| Diluted shares | 421.0M shares |
| Diluted shares: change | -3.6% |
SBC / revenue from the cash flow statement's add-back; the diluted weighted share count year over year; buybacks from the financing section
Source: FY26 (stock compensation, buybacks and the diluted share count, fiscal year)
B02 Receivables growing = future cash is certain Insufficient data
fewer than five quarters with receivables and revenue on file (a year-over-year comparison needs five)
B08 Adjusted profit = economic profit Insufficient data
no reconciliation table read from the releases yet and fewer than three quarters with both an adjusted and a GAAP EPS
C02 Low net debt = no refinancing risk Not triggered confidence medium
$550M comes due within a year, 6.9× covered by cash and investments of $29M plus $3.8B of free cash flow.
The figures and how they are read
| Cash and investments | $29M |
| Debt | $7.6B |
| Net debt | $7.6B |
| Due within a year | $550M |
| Read from | the debt maturity table |
| Free cash flow, twelve months | $3.8B |
| Cash plus free cash flow | $3.8B |
| Coverage of what is due | 6.9 |
| Due in the second year | $598M |
| Balance sheet date | 2026-04-30 |
due within a year from the maturity table (else the current portion of debt), against cash and investments plus free cash flow over the last twelve months (zero if negative); no credit lines assumed
Source: FY26 (debt maturities, cash and investments)
D03 EPS growth = profit growth Not triggered confidence high
EPS rose 23% and net income rose 17% in Q1 FY27; the share count fell 4.1%: EPS growth follows profit growth.
The figures and how they are read
| Quarter | Q1 FY27 |
| Quarter before | Q1 FY26 |
| EPS, year before | $0.87 |
| EPS | $1.06 |
| Net income, year before | $373M |
| Net income | $438M |
| Diluted shares, year before | 429.0M shares |
| Diluted shares | 411.3M shares |
| EPS growth | +22.6% |
| Net income growth | +17.4% |
| Diluted shares: change | -4.1% |
| eps from profit | $0.15 |
| eps from share count | $0.04 |
EPS and net income against the same quarter a year earlier; the EPS bridge attributes the change to profit first, then to the share count (the order is fixed and disclosed)
Source: Q1 FY27 (net income, diluted shares, EPS) · Q1 FY26 (the same quarter a year earlier)
E02 Low P/E at a cyclical peak = undervalued Insufficient data
3 fiscal years of net income on file; a cycle needs five
E07 A precise DCF value = the true value To review confidence high
The DCF's point value is 62.50 a share (price 77.03); 49% of it is the terminal value, a number about years no one has seen. Moving revenue growth (each year) by ±5 pts alone takes it from 48.99 to 78.45; across every method the research ran the range is 17 to 251. The value is a range; the decimals are not information.
The figures and how they are read
| dcf value | 62.50 |
| price | 77.03 |
| terminal value share | +49.0% |
| swing by input | Revenue growth (each year) / ±5 pts / 48.99 / 78.45; WACC / ±1 pt / 54.37 / 73.54; Operating margin / ±3 pts / 53.83 / 71.17; Tax rate / ±5 pts / 58.66 / 66.34 |
| range all methods | 17.35; 251.17 |
the DCF's point value against the share of it that is the terminal value and the value at each input moved by one step (growth ±5 pts, WACC ±1 pt, margin ±3 pts …); the range across every method the research ran
Source: 2026-11-08 (valuation research)
What would explain it innocently
- A stable, mature business with a narrow range of outcomes, where the point value is a fair summary
- The inputs that matter most are themselves well known (a regulated return, a long contract)
What to look for in the filing
- Which input you believe differs from the research's and why
- What the price implies for growth (the reverse DCF on the fair-value page)
What would show the trap does not apply
- The DCF's value is robust to the terminal growth and discount rate (the range's low end is still above the price)
- The company's cash flows over the next three years track the DCF's early years
Look again: next filing.
J06 A bank's low P/E and high profit = safe Not applicable
not a bank
J08 A REIT's low net income = the dividend is unsafe Not applicable
not a REIT
What the statuses mean
Triggered: the filings show the pattern; read the normal explanations and the missing evidence before concluding anything. To review: one quarter or a weak signal; a reader's judgement, not a pattern. Not triggered: the pattern is absent on these figures. Insufficient data: the filings read so far do not hold what the rule needs; this is not a clean bill. Not applicable: the rule is not meant for this kind of company (a bank's working capital, a loss-making quarter's EPS growth). Out of date: the latest filing is more than fifteen months old.
Severity is what the pattern could mean for cash, value or solvency; confidence is how reliable the inputs and the reading are. The two are kept apart.
Record a view
A reader's judgement, grounds, what would change it and the next review; kept in the browser (needs JavaScript).
Every rule and the companies it triggers on → Sunbelt Rentals Holdings: cash flow →
Each rule reads the company's own filings by a fixed formula and says what would explain the same figures innocently. A triggered rule is a question to verify, not a finding of manipulation, and not a view on the stock. Missing data is shown as missing, never as clear. Not investment advice.