HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRI - US42704L1044 - Common Stock
153.83 USD
-0.58 (-0.38%)
153.83 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HRI. HRI was compared to 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 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.
HRI had a positive operating cash flow in each of the past 5 years.
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.
HRI's Return On Equity of -3.58% is on the low side compared to the rest of the industry. HRI is outperformed by 72.00% of its industry peers.
HRI's Return On Invested Capital of 4.08% is in line compared to the rest of the industry. HRI outperforms 42.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HRI 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.
In the last couple of years the Operating Margin of HRI has grown nicely.
HRI's Gross Margin of 58.30% is amongst the best of the industry. HRI outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRI is destroying value.
HRI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HRI has been reduced compared to 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 0.79. 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 (0.79) 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 | 0.79 |
ROIC/WACC0.43
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.22 indicates that HRI should not have too much problems paying 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.
Looking at the Quick ratio, with a value of 1.22, HRI is in line with its industry, outperforming 48.00% of the companies in the same 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.
HRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.42% yearly.
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
HRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.16% yearly.
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-18.82%
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
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.
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 rather expensively with a Price/Earnings ratio of 17.15.
Based on the Price/Earnings ratio, HRI is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HRI to the average of the S&P500 Index (26.39), we can say HRI is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.11, which indicates a rather expensive current valuation of HRI.
64.00% of the companies in the same industry are more expensive than HRI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HRI to the average of the S&P500 Index (23.84), we can say HRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 18.11 |
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 | 7.9 |
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)0.35
EPS Next 2Y-18.82%
EPS Next 3Y-0.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, HRI has a reasonable but not impressive dividend return.
HRI's Dividend Yield is rather good when compared to the industry average which is at 0.98. HRI pays more dividend than 86.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, HRI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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-18.82%
EPS Next 3Y-0.69%
153.83
-0.58 (-0.38%)
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 Cap5.12B
Revenue(TTM)4.12B
Net Income(TTM)-69.00M
Analysts76.92
Price Target168.17 (9.32%)
Short Float %6.92%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)0%
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)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 18.11 | ||
| P/S | 1.24 | ||
| P/FCF | N/A | ||
| P/OCF | 4.65 | ||
| P/B | 2.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.9 |
EPS(TTM)8.97
EY5.83%
EPS(NY)8.49
Fwd EY5.52%
FCF(TTM)-5.59
FCFYN/A
OCF(TTM)33.09
OCFY21.51%
SpS123.78
BVpS57.98
TBVpS-78.99
PEG (NY)N/A
PEG (5Y)0.35
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 | 0.79 |
F-Score2
WACC9.52%
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-18.82%
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%.