HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
USA - NYSE:HRI - US42704L1044 - Common Stock
132.32 USD
+3.11 (+2.41%)
132.32 USD
0 (0%)
Overall HRI gets a fundamental rating of 4 out of 10. We evaluated HRI against 50 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of HRI while its profitability can be described as average. HRI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HRI was profitable.
In the past year HRI had a positive cash flow from operations.
HRI had positive earnings in each of the past 5 years.
In the past 5 years HRI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.16%, HRI is doing worse than 66.00% of the companies in the same industry.
HRI has a worse Return On Equity (1.20%) than 64.00% of its industry peers.
The Return On Invested Capital of HRI (4.17%) is worse than 62.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HRI is below the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.16% | ||
| ROE | 1.2% | ||
| ROIC | 4.17% |
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 has a worse Profit Margin (0.61%) than 64.00% of its industry peers.
HRI's Profit Margin has improved in the last couple of years.
HRI's Operating Margin of 19.40% is fine compared to the rest of the industry. HRI outperforms 80.00% of its industry peers.
HRI's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 59.67%, HRI belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
In the last couple of years the Gross Margin of HRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.4% | ||
| PM (TTM) | 0.61% | ||
| GM | 59.67% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRI is destroying value.
The number of shares outstanding for HRI has been increased compared to 1 year ago.
The number of shares outstanding for HRI has been reduced compared to 5 years ago.
HRI has a better debt/assets ratio than last year.
2.2 Solvency
HRI has an Altman-Z score of 0.72. This is a bad value and indicates that HRI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HRI (0.72) is worse than 90.00% of its industry peers.
HRI has a Debt/Equity ratio of 4.37. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.37, HRI is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.45
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.15 indicates that HRI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.15, HRI is doing worse than 86.00% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that HRI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, HRI is in line with its industry, outperforming 42.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for HRI have decreased by -9.02% 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.
The Revenue has grown by 11.41% in the past year. This is quite good.
HRI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.29% yearly.
EPS 1Y (TTM)-9.02%
EPS 3Y19.73%
EPS 5Y48.42%
EPS Q2Q%-28.08%
Revenue 1Y (TTM)11.41%
Revenue growth 3Y19.84%
Revenue growth 5Y12.29%
Sales Q2Q%18.16%
3.2 Future
Based on estimates for the next years, HRI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.12% on average per year.
Based on estimates for the next years, HRI will show a quite strong growth in Revenue. The Revenue will grow by 14.16% on average per year.
EPS Next Y-29.11%
EPS Next 2Y-9.31%
EPS Next 3Y2.01%
EPS Next 5Y12.12%
Revenue Next Year25.3%
Revenue Next 2Y19.65%
Revenue Next 3Y16.78%
Revenue Next 5Y14.16%
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
With a Price/Earnings ratio of 11.92, the valuation of HRI can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HRI indicates a rather cheap valuation: HRI is cheaper than 90.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HRI to the average of the S&P500 Index (27.20), we can say HRI is valued rather cheaply.
HRI is valuated correctly with a Price/Forward Earnings ratio of 12.48.
HRI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRI is cheaper than 86.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HRI to the average of the S&P500 Index (22.71), we can say HRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 12.48 |
4.2 Price Multiples
82.00% of the companies in the same industry are more expensive than HRI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-9.31%
EPS Next 3Y2.01%
5. Dividend
5.1 Amount
HRI has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.74, HRI pays a better dividend. On top of this HRI pays more dividend than 82.00% of the companies listed in the same industry.
HRI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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 pays out 343.48% of its income as dividend. This is not a sustainable payout ratio.
DP343.48%
EPS Next 2Y-9.31%
EPS Next 3Y2.01%
132.32
+3.11 (+2.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.83%
Inst Owner Change11.59%
Ins Owners2.01%
Ins Owner Change0.8%
Market Cap4.40B
Analysts75.38
Price Target153.58 (16.07%)
Short Float %7.59%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend2.72
Dividend Growth(5Y)N/A
DP343.48%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.6%
Min EPS beat(2)-42.15%
Max EPS beat(2)20.95%
EPS beat(4)1
Avg EPS beat(4)-8.78%
Min EPS beat(4)-42.15%
Max EPS beat(4)20.95%
EPS beat(8)2
Avg EPS beat(8)-6.25%
EPS beat(12)3
Avg EPS beat(12)-5.38%
EPS beat(16)4
Avg EPS beat(16)-4.53%
Revenue beat(2)2
Avg Revenue beat(2)0.73%
Min Revenue beat(2)0.38%
Max Revenue beat(2)1.09%
Revenue beat(4)4
Avg Revenue beat(4)1.48%
Min Revenue beat(4)0.38%
Max Revenue beat(4)2.59%
Revenue beat(8)7
Avg Revenue beat(8)0.55%
Revenue beat(12)9
Avg Revenue beat(12)0.35%
Revenue beat(16)11
Avg Revenue beat(16)0.18%
PT rev (1m)-8.67%
PT rev (3m)-14.87%
EPS NQ rev (1m)-5.48%
EPS NQ rev (3m)-36.72%
EPS NY rev (1m)-15.25%
EPS NY rev (3m)-28.23%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)21.66%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)21.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 12.48 | ||
| P/S | 1.16 | ||
| P/FCF | N/A | ||
| P/OCF | 4.08 | ||
| P/B | 2.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)11.1
EY8.39%
EPS(NY)10.6
Fwd EY8.01%
FCF(TTM)-2.77
FCFYN/A
OCF(TTM)32.46
OCFY24.53%
SpS113.69
BVpS57.49
TBVpS-78.58
PEG (NY)N/A
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.16% | ||
| ROE | 1.2% | ||
| ROCE | 5.55% | ||
| ROIC | 4.17% | ||
| ROICexc | 4.19% | ||
| ROICexgc | 6.38% | ||
| OM | 19.4% | ||
| PM (TTM) | 0.61% | ||
| GM | 59.67% | ||
| 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%
ROICexcg growth 3Y2.77%
ROICexcg 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-Score3
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.22 | ||
| Cap/Depr | 135.06% | ||
| Cap/Sales | 30.99% | ||
| Interest Coverage | 2.89 | ||
| Cash Conversion | 67.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 0.72 |
F-Score3
WACC9.27%
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)-9.02%
EPS 3Y19.73%
EPS 5Y48.42%
EPS Q2Q%-28.08%
EPS Next Y-29.11%
EPS Next 2Y-9.31%
EPS Next 3Y2.01%
EPS Next 5Y12.12%
Revenue 1Y (TTM)11.41%
Revenue growth 3Y19.84%
Revenue growth 5Y12.29%
Sales Q2Q%18.16%
Revenue Next Year25.3%
Revenue Next 2Y19.65%
Revenue Next 3Y16.78%
Revenue Next 5Y14.16%
EBIT growth 1Y7.95%
EBIT growth 3Y25.3%
EBIT growth 5Y24.59%
EBIT Next Year151.83%
EBIT Next 3Y49.54%
EBIT Next 5Y32.27%
FCF growth 1Y76.74%
FCF growth 3Y-46.1%
FCF growth 5YN/A
OCF growth 1Y0.48%
OCF growth 3Y18.08%
OCF growth 5Y14.02%