HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRI - US42704L1044 - Common Stock
133.46 USD
+1.34 (+1.01%)
133.46 USD
0 (0%)
Taking everything into account, HRI scores 4 out of 10 in our fundamental rating. HRI was compared to 49 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 has a decent growth rate and is not valued too expensively.
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 63.27% of its industry peers.
The Return On Equity of HRI (-3.58%) is worse than 69.39% of its industry peers.
HRI has a Return On Invested Capital (4.08%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for HRI is in line with the industry average of 9.22%.
| 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.
HRI has a better Operating Margin (17.31%) than 79.59% of its industry peers.
In the last couple of years the Operating Margin of HRI has grown nicely.
With an excellent Gross Margin value of 58.30%, HRI belongs to the best of the industry, outperforming 93.88% 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.
Compared to 1 year ago, HRI has more shares outstanding
Compared to 5 years ago, HRI has less shares outstanding
The debt/assets ratio for HRI has been reduced compared to a year ago.
2.2 Solvency
HRI has an Altman-Z score of 0.75. This is a bad value and indicates that HRI is not financially healthy and even has some risk of bankruptcy.
HRI has a Altman-Z score of 0.75. This is amonst the worse of the industry: HRI underperforms 89.80% of its industry peers.
HRI has a Debt/Equity ratio of 4.28. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.28, HRI is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.42
WACC9.6%
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: 77.55% 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 48.98% 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
The Earnings Per Share is expected to grow by 11.16% on average over the next years. This is quite good.
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.
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
With a Price/Earnings ratio of 14.88, HRI is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HRI indicates a somewhat cheap valuation: HRI is cheaper than 77.55% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.47. HRI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.69, which indicates a correct valuation of HRI.
71.43% of the companies in the same industry are more expensive than HRI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.42. HRI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 14.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRI indicates a somewhat cheap valuation: HRI is cheaper than 79.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.47 |
4.3 Compensation for Growth
HRI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-16.06%
EPS Next 3Y0.56%
5. Dividend
5.1 Amount
HRI has a Yearly Dividend Yield of 2.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.08, HRI pays a better dividend. On top of this HRI pays more dividend than 89.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, HRI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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-16.06%
EPS Next 3Y0.56%
133.46
+1.34 (+1.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners102.39%
Inst Owner Change1.06%
Ins Owners2.01%
Ins Owner Change0.13%
Market Cap4.44B
Revenue(TTM)4.12B
Net Income(TTM)-69.00M
Analysts76.67
Price Target168.17 (26.01%)
Short Float %7.42%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)9.5%
PT rev (3m)9.5%
EPS NQ rev (1m)-10.48%
EPS NQ rev (3m)-33.36%
EPS NY rev (1m)-3.34%
EPS NY rev (3m)-11.66%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 14.69 | ||
| P/S | 1.08 | ||
| P/FCF | N/A | ||
| P/OCF | 4.03 | ||
| P/B | 2.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.47 |
EPS(TTM)8.97
EY6.72%
EPS(NY)9.08
Fwd EY6.81%
FCF(TTM)-5.6
FCFYN/A
OCF(TTM)33.12
OCFY24.82%
SpS123.89
BVpS58.03
TBVpS-79.06
PEG (NY)N/A
PEG (5Y)0.31
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 | 0.75 |
F-Score2
WACC9.6%
ROIC/WACC0.42
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%.