HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
USA - NYSE:HRI - US42704L1044 - Common Stock
138.82 USD
+4.74 (+3.54%)
138.82 USD
0 (0%)
HRI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. HRI has a medium profitability rating, but doesn't score so well on its financial health evaluation. HRI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HRI had positive earnings in the past year.
In the past year HRI had a positive cash flow from operations.
HRI had positive earnings in each of the past 5 years.
Each year in the past 5 years HRI had a positive operating cash flow.
1.2 Ratios
HRI has a Return On Assets of -0.50%. This is in the lower half of the industry: HRI underperforms 64.71% of its industry peers.
The Return On Equity of HRI (-3.58%) is worse than 68.63% of its industry peers.
The Return On Invested Capital of HRI (4.08%) is comparable to the rest of the industry.
HRI had an Average Return On Invested Capital over the past 3 years of 7.69%. This is below the industry average of 10.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -3.58% | ||
| ROIC | 4.08% |
ROA(3y)4.38%
ROA(5y)4.04%
ROE(3y)24.04%
ROE(5y)21%
ROIC(3y)7.69%
ROIC(5y)7%
1.3 Margins
HRI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.31%, HRI belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
HRI's Operating Margin has improved in the last couple of years.
HRI's Gross Margin of 58.30% is amongst the best of the industry. HRI outperforms 92.16% of its industry peers.
In the last couple of years the Gross Margin of HRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.31% | ||
| PM (TTM) | N/A | ||
| GM | 58.31% |
OM growth 3Y4.56%
OM growth 5Y10.96%
PM growth 3Y-18.21%
PM growth 5Y20%
GM growth 3Y1.25%
GM growth 5Y3.11%
2. Health
2.1 Basic Checks
HRI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HRI has more shares outstanding
Compared to 5 years ago, HRI has less shares outstanding
HRI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that HRI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.76, HRI is not doing good in the industry: 78.43% of the companies in the same industry are doing better.
HRI has a Debt/Equity ratio of 4.28. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.28, HRI is not doing good in the industry: 86.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.45
WACC9.11%
2.3 Liquidity
HRI has a Current Ratio of 1.22. This is a normal value and indicates that HRI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.22, HRI is not doing good in the industry: 80.39% of the companies in the same industry are doing better.
HRI has a Quick Ratio of 1.22. This is a normal value and indicates that HRI is financially healthy and should not expect problems in meeting its short term obligations.
HRI has a Quick ratio of 1.22. This is comparable to the rest of the industry: HRI outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for HRI have decreased strongly by -28.53% in the last year.
HRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.42% yearly.
Looking at the last year, HRI shows a quite strong growth in Revenue. The Revenue has grown by 19.40% in the last year.
The Revenue has been growing by 12.29% on average over the past years. This is quite good.
EPS 1Y (TTM)-28.53%
EPS 3Y19.73%
EPS 5Y48.42%
EPS Q2Q%-48.97%
Revenue 1Y (TTM)19.4%
Revenue growth 3Y19.84%
Revenue growth 5Y12.29%
Sales Q2Q%35.13%
3.2 Future
HRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.16% yearly.
Based on estimates for the next years, HRI will show a quite strong growth in Revenue. The Revenue will grow by 13.47% on average per year.
EPS Next Y-37.38%
EPS Next 2Y-16.06%
EPS Next 3Y0.56%
EPS Next 5Y11.16%
Revenue Next Year24.8%
Revenue Next 2Y19.75%
Revenue Next 3Y14.67%
Revenue Next 5Y13.47%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.48, which indicates a correct valuation of HRI.
Based on the Price/Earnings ratio, HRI is valued a bit cheaper than 78.43% of the companies in the same industry.
HRI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
HRI is valuated correctly with a Price/Forward Earnings ratio of 15.29.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRI indicates a somewhat cheap valuation: HRI is cheaper than 74.51% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HRI to the average of the S&P500 Index (22.35), we can say HRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 15.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRI is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.51 |
4.3 Compensation for Growth
The decent profitability rating of HRI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-16.06%
EPS Next 3Y0.56%
5. Dividend
5.1 Amount
HRI has a Yearly Dividend Yield of 2.09%.
HRI's Dividend Yield is rather good when compared to the industry average which is at 1.97. HRI pays more dividend than 86.27% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HRI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
5.2 History
HRI has been paying a dividend for over 5 years, so it has already some track record.
HRI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
HRI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-120.29%
EPS Next 2Y-16.06%
EPS Next 3Y0.56%
138.82
+4.74 (+3.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners102.39%
Inst Owner Change-0.96%
Ins Owners2.01%
Ins Owner Change0.8%
Market Cap4.61B
Revenue(TTM)4.12B
Net Income(TTM)-69000000
Analysts76.67
Price Target155.91 (12.31%)
Short Float %7.59%
Short Ratio5.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend2.72
Dividend Growth(5Y)N/A
DP-120.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.32%
Min EPS beat(2)-0.32%
Max EPS beat(2)20.95%
EPS beat(4)1
Avg EPS beat(4)-7.91%
Min EPS beat(4)-42.15%
Max EPS beat(4)20.95%
EPS beat(8)2
Avg EPS beat(8)-5.73%
EPS beat(12)3
Avg EPS beat(12)-5.07%
EPS beat(16)4
Avg EPS beat(16)-4.53%
Revenue beat(2)1
Avg Revenue beat(2)0.39%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)1.09%
Revenue beat(4)3
Avg Revenue beat(4)0.76%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)1.87%
Revenue beat(8)6
Avg Revenue beat(8)0.48%
Revenue beat(12)8
Avg Revenue beat(12)0.18%
Revenue beat(16)11
Avg Revenue beat(16)0.25%
PT rev (1m)1.52%
PT rev (3m)-12.4%
EPS NQ rev (1m)-20.98%
EPS NQ rev (3m)-30.18%
EPS NY rev (1m)-1.5%
EPS NY rev (3m)-22.54%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 15.29 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | 4.19 | ||
| P/B | 2.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.51 |
EPS(TTM)8.97
EY6.46%
EPS(NY)9.08
Fwd EY6.54%
FCF(TTM)-5.6
FCFYN/A
OCF(TTM)33.12
OCFY23.86%
SpS123.89
BVpS58.03
TBVpS-79.06
PEG (NY)N/A
PEG (5Y)0.32
Graham Number108.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -3.58% | ||
| ROCE | 5.43% | ||
| ROIC | 4.08% | ||
| ROICexc | 4.1% | ||
| ROICexgc | 6.29% | ||
| OM | 17.31% | ||
| PM (TTM) | N/A | ||
| GM | 58.31% | ||
| FCFM | N/A |
ROA(3y)4.38%
ROA(5y)4.04%
ROE(3y)24.04%
ROE(5y)21%
ROIC(3y)7.69%
ROIC(5y)7%
ROICexc(3y)7.77%
ROICexc(5y)7.07%
ROICexgc(3y)9.25%
ROICexgc(5y)8.36%
ROCE(3y)10.24%
ROCE(5y)9.32%
ROICexgc growth 3Y2.77%
ROICexgc growth 5Y9.04%
ROICexc growth 3Y2.21%
ROICexc growth 5Y7.51%
OM growth 3Y4.56%
OM growth 5Y10.96%
PM growth 3Y-18.21%
PM growth 5Y20%
GM growth 3Y1.25%
GM growth 5Y3.11%
F-Score2
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.89 | ||
| Cap/Depr | 131.87% | ||
| Cap/Sales | 31.25% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 65.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 0.76 |
F-Score2
WACC9.11%
ROIC/WACC0.45
Cap/Depr(3y)182.39%
Cap/Depr(5y)152.23%
Cap/Sales(3y)41.77%
Cap/Sales(5y)35.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-28.53%
EPS 3Y19.73%
EPS 5Y48.42%
EPS Q2Q%-48.97%
EPS Next Y-37.38%
EPS Next 2Y-16.06%
EPS Next 3Y0.56%
EPS Next 5Y11.16%
Revenue 1Y (TTM)19.4%
Revenue growth 3Y19.84%
Revenue growth 5Y12.29%
Sales Q2Q%35.13%
Revenue Next Year24.8%
Revenue Next 2Y19.75%
Revenue Next 3Y14.67%
Revenue Next 5Y13.47%
EBIT growth 1Y1.13%
EBIT growth 3Y25.3%
EBIT growth 5Y24.59%
EBIT Next Year149.71%
EBIT Next 3Y49.34%
EBIT Next 5Y31.49%
FCF growth 1Y61.15%
FCF growth 3Y-46.1%
FCF growth 5YN/A
OCF growth 1Y1.06%
OCF growth 3Y18.08%
OCF growth 5Y14.02%
HERC HOLDINGS INC / HRI FAQ
Can you provide the ChartMill fundamental rating for HERC HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to HRI.
What is the valuation status of HERC HOLDINGS INC (HRI) stock?
ChartMill assigns a valuation rating of 4 / 10 to HERC HOLDINGS INC (HRI). This can be considered as Fairly Valued.
What is the profitability of HRI stock?
HERC HOLDINGS INC (HRI) has a profitability rating of 6 / 10.
Can you provide the financial health for HRI stock?
The financial health rating of HERC HOLDINGS INC (HRI) is 2 / 10.
Can you provide the dividend sustainability for HRI stock?
The dividend rating of HERC HOLDINGS INC (HRI) is 3 / 10 and the dividend payout ratio is -120.29%.