HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRI - US42704L1044 - Common Stock
154.16 USD
-3.79 (-2.4%)
154.16 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HRI. HRI was compared to 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.
- HRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.50%, HRI is doing worse than 66.00% of the companies in the same industry.
- With a Return On Equity value of -3.58%, HRI is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
- Looking at the Return On Invested Capital, with a value of 4.08%, HRI is in line with its industry, outperforming 42.00% of the companies in the same industry.
- HRI had an Average Return On Invested Capital over the past 3 years of 7.69%. This is in line with the industry average of 9.63%.
| 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
- In the last couple of years the Profit Margin of HRI has grown nicely.
- With a decent Operating Margin value of 17.31%, HRI is doing good in the industry, outperforming 78.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of HRI has grown nicely.
- Looking at the Gross Margin, with a value of 58.30%, HRI belongs to the top of the industry, outperforming 94.00% 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 | 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.
- 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
- Based on the Altman-Z score of 0.80, we must say that HRI is in the distress zone and has some risk of bankruptcy.
- HRI's Altman-Z score of 0.80 is on the low side compared to the rest of the industry. HRI is outperformed by 88.00% of its industry peers.
- A Debt/Equity ratio of 4.28 is on the high side and indicates that HRI has dependencies on debt financing.
- HRI's Debt to Equity ratio of 4.28 is on the low side compared to the rest of the industry. HRI is outperformed by 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.43
WACC9.45%
2.3 Liquidity
- A Current Ratio of 1.22 indicates that HRI should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.22, HRI is doing worse than 78.00% of the companies in the same industry.
- 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 48.00% 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.
- Measured over the past years, HRI shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.42% on average per year.
- Looking at the last year, HRI shows a quite strong growth in Revenue. The Revenue has grown by 19.40% in the last year.
- 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)-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-42.78%
EPS Next 2Y-18.79%
EPS Next 3Y-0.45%
EPS Next 5Y11.16%
Revenue Next Year24.91%
Revenue Next 2Y19.69%
Revenue Next 3Y14.75%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HRI is valuated rather expensively with a Price/Earnings ratio of 17.19.
- Compared to the rest of the industry, the Price/Earnings ratio of HRI indicates a somewhat cheap valuation: HRI is cheaper than 76.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.94. HRI is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 18.14, the valuation of HRI can be described as rather expensive.
- HRI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HRI is cheaper than 68.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, HRI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 18.14 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRI indicates a rather cheap valuation: HRI is cheaper than 82.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.98 |
4.3 Compensation for Growth
- The decent profitability rating of HRI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-18.79%
EPS Next 3Y-0.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.76%, HRI has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.48, HRI pays a bit more dividend than its industry peers.
- HRI's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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
- The earnings of HRI are negative and hence is the payout ratio. HRI will probably not be able to sustain this dividend level.
DP-120.29%
EPS Next 2Y-18.79%
EPS Next 3Y-0.45%
154.16
-3.79 (-2.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners104.38%
Inst Owner Change-0.91%
Ins Owners1.99%
Ins Owner Change0.05%
Market Cap5.13B
Revenue(TTM)4.12B
Net Income(TTM)-69.00M
Analysts76.92
Price Target173.29 (12.41%)
Short Float %7.42%
Short Ratio5.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend2.72
Dividend Growth(5Y)N/A
DP-120.29%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)3.04%
PT rev (3m)12.83%
EPS NQ rev (1m)2.78%
EPS NQ rev (3m)-6.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.02%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 18.14 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | 4.66 | ||
| P/B | 2.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.98 |
EPS(TTM)8.97
EY5.82%
EPS(NY)8.5
Fwd EY5.51%
FCF(TTM)-5.59
FCFYN/A
OCF(TTM)33.09
OCFY21.47%
SpS123.78
BVpS57.98
TBVpS-78.99
PEG (NY)N/A
PEG (5Y)0.35
Graham Number108.18
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 | 0.8 |
F-Score2
WACC9.45%
ROIC/WACC0.43
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-42.78%
EPS Next 2Y-18.79%
EPS Next 3Y-0.45%
EPS Next 5Y11.16%
Revenue 1Y (TTM)19.4%
Revenue growth 3Y19.84%
Revenue growth 5Y12.29%
Sales Q2Q%35.13%
Revenue Next Year24.91%
Revenue Next 2Y19.69%
Revenue Next 3Y14.75%
Revenue Next 5Y13.47%
EBIT growth 1Y1.13%
EBIT growth 3Y25.3%
EBIT growth 5Y24.59%
EBIT Next Year146.67%
EBIT Next 3Y46.99%
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
What is the ChartMill fundamental rating of HERC HOLDINGS INC (HRI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to HRI.
Can you provide the valuation status for HERC HOLDINGS INC?
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.
What is the valuation of HERC HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HERC HOLDINGS INC (HRI) is 17.19 and the Price/Book (PB) ratio is 2.66.
What is the expected EPS growth for HERC HOLDINGS INC (HRI) stock?
The Earnings per Share (EPS) of HERC HOLDINGS INC (HRI) is expected to decline by -42.78% in the next year.