HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRI - US42704L1044 - Common Stock
167.99 USD
-0.75 (-0.44%)
167.99 USD
0 (0%)
HRI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 valied quite expensively at the moment, while it does show 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.
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
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.
With a Return On Invested Capital value of 4.08%, HRI perfoms like the industry average, 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.
HRI has a better Operating Margin (17.31%) than 78.00% of its industry peers.
HRI's Operating Margin has improved in the last couple of years.
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.
HRI's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRI is destroying value.
Compared to 1 year ago, HRI has more shares outstanding
Compared to 5 years ago, HRI has less shares outstanding
Compared to 1 year ago, HRI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that HRI is in the distress zone and has some risk of bankruptcy.
HRI's Altman-Z score of 0.81 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.
The Debt to Equity ratio of HRI (4.28) is worse than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.43
WACC9.46%
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 (1.22) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
HRI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.53%.
The Earnings Per Share has been growing by 48.42% on average over the past years. This is a very strong growth
The Revenue has grown by 19.40% 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)-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.
The Revenue is expected to grow by 13.47% on average over the next years. This is quite good.
EPS Next Y-42.78%
EPS Next 2Y-18.79%
EPS Next 3Y-0.45%
EPS Next 5Y11.16%
Revenue Next Year24.54%
Revenue Next 2Y19.64%
Revenue Next 3Y14.97%
Revenue Next 5Y13.47%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 18.73 indicates a rather expensive valuation of HRI.
Based on the Price/Earnings ratio, HRI is valued a bit cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of HRI to the average of the S&P500 Index (27.19), we can say HRI is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.76, which indicates a rather expensive current valuation of HRI.
HRI's Price/Forward Earnings is on the same level as the industry average.
HRI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 19.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRI is valued cheaply inside the industry as 82.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
The decent profitability rating of HRI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-18.79%
EPS Next 3Y-0.45%
5. Dividend
5.1 Amount
HRI has a Yearly Dividend Yield of 1.66%.
Compared to an average industry Dividend Yield of 1.35, HRI pays a bit more dividend than its industry peers.
HRI's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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%
167.99
-0.75 (-0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners104.38%
Inst Owner Change-0.01%
Ins Owners1.99%
Ins Owner Change0.05%
Market Cap5.59B
Revenue(TTM)4.12B
Net Income(TTM)-69.00M
Analysts76.92
Price Target173.29 (3.15%)
Short Float %7.81%
Short Ratio5.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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)0%
EPS NQ rev (3m)-19.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 19.76 | ||
| P/S | 1.36 | ||
| P/FCF | N/A | ||
| P/OCF | 5.08 | ||
| P/B | 2.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.18 |
EPS(TTM)8.97
EY5.34%
EPS(NY)8.5
Fwd EY5.06%
FCF(TTM)-5.59
FCFYN/A
OCF(TTM)33.09
OCFY19.7%
SpS123.78
BVpS57.98
TBVpS-78.99
PEG (NY)N/A
PEG (5Y)0.39
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 | 0.81 |
F-Score2
WACC9.46%
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 Year24.54%
Revenue Next 2Y19.64%
Revenue Next 3Y14.97%
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 3 / 10 to HERC HOLDINGS INC (HRI). This can be considered as Overvalued.
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 18.73 and the Price/Book (PB) ratio is 2.9.
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.