Overall HRI gets a fundamental rating of 4 out of 10. We evaluated HRI against 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 has a decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year HRI was profitable.
HRI had a positive operating cash flow in the past year.
Each year in the past 5 years HRI has been profitable.
HRI had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a Return On Assets value of -0.50%, HRI is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
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.
The Average Return On Invested Capital over the past 3 years for HRI is in line with the industry average of 9.64%.

		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 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 has a Gross Margin of 58.30%. This is amongst the best in 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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

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.
HRI has a Altman-Z score of 0.77. This is amonst the worse of the industry: HRI underperforms 86.00% 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.
With a Debt to Equity ratio value of 4.28, HRI is not doing good in the industry: 84.00% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	4.28
Debt/FCF	N/A
Altman-Z	0.77

ROIC/WACC0.43

WACC9.44%

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: 80.00% of the companies in the same industry are doing better.
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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
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

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.
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-38.02%

EPS Next 2Y-15.75%

EPS Next 3Y1.38%

EPS Next 5Y11.16%

Revenue Next Year24.91%

Revenue Next 2Y19.65%

Revenue Next 3Y14.8%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.98, which indicates a correct valuation of HRI.
80.00% of the companies in the same industry are more expensive than HRI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.32. HRI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.67, which indicates a correct valuation of HRI.
80.00% of the companies in the same industry are more expensive than HRI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, HRI is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	15.98
Fwd PE	15.67

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRI indicates a rather cheap valuation: HRI is cheaper than 84.00% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	7.7

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-15.75%

EPS Next 3Y1.38%

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5. Dividend

5.1 Amount

HRI has a Yearly Dividend Yield of 1.90%.
HRI's Dividend Yield is rather good when compared to the industry average which is at 0.88. HRI pays more dividend than 88.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.83, HRI has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	1.9%

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-15.75%

EPS Next 3Y1.38%

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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 15.98 and the Price/Book (PB) ratio is 2.47.

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 -38.02% in the next year.