HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRI - US42704L1044 - Common Stock
141.29 USD
-0.42 (-0.3%)
141.29 USD
0 (0%)
Taking everything into account, HRI scores 4 out of 10 in our fundamental rating. HRI was compared to 50 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
In the past year HRI was profitable.
HRI had a positive operating cash flow in the past year.
In the past 5 years HRI has always been profitable.
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 66.00% of its industry peers.
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.
HRI has a Return On Invested Capital (4.08%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for HRI is in line with the industry average of 9.42%.
| 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.
The Operating Margin of HRI (17.31%) is better than 78.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
Based on the Altman-Z score of 0.77, we must say that HRI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HRI (0.77) is worse than 90.00% 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.
HRI has a Debt to Equity ratio of 4.28. This is amonst the worse of the industry: HRI underperforms 86.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
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.
HRI has a Current ratio of 1.22. This is in the lower half of the industry: HRI underperforms 78.00% of its industry peers.
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 (1.22) which is in line with 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.
HRI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.40%.
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.
HRI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.47% yearly.
EPS Next Y-42.78%
EPS Next 2Y-18.82%
EPS Next 3Y-0.69%
EPS Next 5Y11.16%
Revenue Next Year24.54%
Revenue Next 2Y19.62%
Revenue Next 3Y14.92%
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
Based on the Price/Earnings ratio of 15.75, the valuation of HRI can be described as correct.
HRI's Price/Earnings ratio is a bit cheaper when compared to the industry. HRI is cheaper than 78.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.49. HRI is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.63 indicates a correct valuation of HRI.
Based on the Price/Forward Earnings ratio, HRI is valued a bit cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HRI to the average of the S&P500 Index (23.69), we can say HRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
84.00% 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 | 7.66 |
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)0.33
EPS Next 2Y-18.82%
EPS Next 3Y-0.69%
5. Dividend
5.1 Amount
HRI has a Yearly Dividend Yield of 1.98%. Purely for dividend investing, there may be better candidates out there.
HRI's Dividend Yield is a higher than the industry average which is at 2.97.
Compared to an average S&P500 Dividend Yield of 2.31, HRI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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-18.82%
EPS Next 3Y-0.69%
141.29
-0.42 (-0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners104.45%
Inst Owner Change1.06%
Ins Owners1.99%
Ins Owner Change0.01%
Market Cap4.70B
Revenue(TTM)4.12B
Net Income(TTM)-69.00M
Analysts76.92
Price Target168.17 (19.02%)
Short Float %7.44%
Short Ratio5.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)7.86%
PT rev (3m)9.5%
EPS NQ rev (1m)2.57%
EPS NQ rev (3m)-19.62%
EPS NY rev (1m)-8.63%
EPS NY rev (3m)-19.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 16.63 | ||
| P/S | 1.14 | ||
| P/FCF | N/A | ||
| P/OCF | 4.27 | ||
| P/B | 2.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.66 |
EPS(TTM)8.97
EY6.35%
EPS(NY)8.49
Fwd EY6.01%
FCF(TTM)-5.59
FCFYN/A
OCF(TTM)33.09
OCFY23.42%
SpS123.78
BVpS57.98
TBVpS-78.99
PEG (NY)N/A
PEG (5Y)0.33
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 | 0.77 |
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-42.78%
EPS Next 2Y-18.82%
EPS Next 3Y-0.69%
EPS Next 5Y11.16%
Revenue 1Y (TTM)19.4%
Revenue growth 3Y19.84%
Revenue growth 5Y12.29%
Sales Q2Q%35.13%
Revenue Next Year24.54%
Revenue Next 2Y19.62%
Revenue Next 3Y14.92%
Revenue Next 5Y13.47%
EBIT growth 1Y1.13%
EBIT growth 3Y25.3%
EBIT growth 5Y24.59%
EBIT Next Year146.67%
EBIT Next 3Y46.89%
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%.