HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
USA - NYSE:HRI - US42704L1044 - Common Stock
131.202 USD
+1.83 (+1.42%)
Overall HRI gets a fundamental rating of 4 out of 10. We evaluated HRI against 49 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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years HRI had a positive operating cash flow.
1.2 Ratios
HRI has a worse Return On Assets (0.16%) than 65.31% of its industry peers.
The Return On Equity of HRI (1.20%) is worse than 63.27% of its industry peers.
With a Return On Invested Capital value of 4.17%, HRI perfoms like the industry average, outperforming 40.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HRI is below the industry average of 10.04%.
| 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's Profit Margin of 0.61% is on the low side compared to the rest of the industry. HRI is outperformed by 63.27% of its industry peers.
HRI's Profit Margin has improved in the last couple of years.
HRI has a better Operating Margin (19.40%) than 79.59% of its industry peers.
HRI's Operating Margin has improved in the last couple of years.
HRI has a Gross Margin of 59.67%. This is amongst the best in the industry. HRI outperforms 91.84% of its industry peers.
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
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
HRI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HRI has an improved debt to assets ratio.
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.
HRI has a worse Altman-Z score (0.72) than 87.76% of its industry peers.
A Debt/Equity ratio of 4.37 is on the high side and indicates that HRI has dependencies on debt financing.
HRI's Debt to Equity ratio of 4.37 is on the low side compared to the rest of the industry. HRI is outperformed by 87.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.46
WACC9.07%
2.3 Liquidity
HRI has a Current Ratio of 1.15. 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 1.15, HRI is not doing good in the industry: 83.67% of the companies in the same industry are doing better.
HRI has a Quick Ratio of 1.15. This is a normal value and indicates that HRI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.15, HRI is in line with its industry, outperforming 42.86% 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.
Looking at the last year, HRI shows a quite strong growth in Revenue. The Revenue has grown by 11.41% in the last year.
Measured over the past years, HRI shows a quite strong growth in Revenue. The Revenue has been growing by 12.29% on average per year.
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-34.22%
EPS Next 2Y-8%
EPS Next 3Y2.01%
EPS Next 5Y12.12%
Revenue Next Year25.3%
Revenue Next 2Y19.56%
Revenue Next 3Y15.88%
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
HRI is valuated reasonably with a Price/Earnings ratio of 11.82.
HRI's Price/Earnings ratio is rather cheap when compared to the industry. HRI is cheaper than 87.76% of the companies in the same industry.
HRI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.77.
A Price/Forward Earnings ratio of 12.02 indicates a correct valuation of HRI.
Based on the Price/Forward Earnings ratio, HRI is valued cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, HRI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
81.63% 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 | 7.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-8%
EPS Next 3Y2.01%
5. Dividend
5.1 Amount
HRI has a Yearly Dividend Yield of 2.16%.
Compared to an average industry Dividend Yield of 1.81, HRI pays a better dividend. On top of this HRI pays more dividend than 89.80% of the companies listed in the same industry.
HRI's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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-8%
EPS Next 3Y2.01%
NYSE:HRI (10/22/2025, 12:24:05 PM)
131.202
+1.83 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners102.39%
Inst Owner Change0.04%
Ins Owners2.01%
Ins Owner Change0.8%
Market Cap4.36B
Revenue(TTM)3.78B
Net Income(TTM)23.00M
Analysts75.38
Price Target153.58 (17.06%)
Short Float %7.41%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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)0%
PT rev (3m)-13.71%
EPS NQ rev (1m)-10.67%
EPS NQ rev (3m)-24.76%
EPS NY rev (1m)-7.21%
EPS NY rev (3m)-21.36%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 12.02 | ||
| P/S | 1.15 | ||
| P/FCF | N/A | ||
| P/OCF | 4.04 | ||
| P/B | 2.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.89 |
EPS(TTM)11.1
EY8.46%
EPS(NY)10.91
Fwd EY8.32%
FCF(TTM)-2.77
FCFYN/A
OCF(TTM)32.46
OCFY24.74%
SpS113.69
BVpS57.49
TBVpS-78.58
PEG (NY)N/A
PEG (5Y)0.24
Graham Number119.83
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%
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-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
WACC9.07%
ROIC/WACC0.46
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-34.22%
EPS Next 2Y-8%
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 2Y19.56%
Revenue Next 3Y15.88%
Revenue Next 5Y14.16%
EBIT growth 1Y7.95%
EBIT growth 3Y25.3%
EBIT growth 5Y24.59%
EBIT Next Year149.71%
EBIT Next 3Y49.34%
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%