HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRI - US42704L1044 - Common Stock
148.38 USD
-4.29 (-2.81%)
148.38 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. While HRI is still in line with the averages on profitability rating, there are concerns on its financial health. HRI has a correct valuation and a medium 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 worse Return On Assets (-0.50%) than 66.00% of its industry peers.
Looking at the Return On Equity, with a value of -3.58%, HRI is doing worse than 72.00% of the companies in the same industry.
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
HRI's Profit Margin has improved in the last couple of years.
HRI's Operating Margin of 17.31% is fine compared to the rest of the industry. HRI outperforms 78.00% of its industry peers.
In the last couple of years the Operating Margin of HRI has grown nicely.
HRI has a better Gross Margin (58.30%) than 94.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HRI is destroying value.
HRI has more shares outstanding than it did 1 year ago.
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 0.78. This is a bad value and indicates that HRI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HRI (0.78) is worse than 88.00% 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.
Looking at the Debt to Equity ratio, with a value of 4.28, HRI is doing worse than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.43
WACC9.5%
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 worse Current ratio (1.22) than 78.00% of its industry peers.
A Quick Ratio of 1.22 indicates that HRI should not have too much problems paying its short term obligations.
The Quick ratio of HRI (1.22) 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
The earnings per share for HRI have decreased strongly by -28.53% in the last year.
The Earnings Per Share has been growing by 48.42% on average over the past years. This is a very strong growth
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-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
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 correctly with a Price/Earnings ratio of 16.54.
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 26.51. HRI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.46, the valuation of HRI can be described as rather expensive.
64.00% 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 23.13. HRI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 17.46 |
4.2 Price Multiples
HRI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HRI is cheaper than 82.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.8 |
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)0.34
EPS Next 2Y-18.79%
EPS Next 3Y-0.45%
5. Dividend
5.1 Amount
HRI has a Yearly Dividend Yield of 1.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.98, HRI pays a better dividend. On top of this HRI pays more dividend than 84.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, HRI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-120.29%
EPS Next 2Y-18.79%
EPS Next 3Y-0.45%
148.38
-4.29 (-2.81%)
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 Cap4.94B
Revenue(TTM)4.12B
Net Income(TTM)-69.00M
Analysts76.92
Price Target173.29 (16.79%)
Short Float %7.81%
Short Ratio5.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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)-8.63%
EPS NY rev (3m)-13.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 17.46 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | 4.48 | ||
| P/B | 2.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.8 |
EPS(TTM)8.97
EY6.05%
EPS(NY)8.5
Fwd EY5.73%
FCF(TTM)-5.59
FCFYN/A
OCF(TTM)33.09
OCFY22.3%
SpS123.78
BVpS57.98
TBVpS-78.99
PEG (NY)N/A
PEG (5Y)0.34
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 | 0.78 |
F-Score2
WACC9.5%
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 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 16.54 and the Price/Book (PB) ratio is 2.56.
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.