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%)
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. 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.
In the past year HRI had a positive cash flow from operations.
HRI had positive earnings in each of the past 5 years.
Each year in the past 5 years HRI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.50%, HRI is doing worse than 66.00% of the companies in the same industry.
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.
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 9.63%.
| 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.
HRI's Operating Margin has improved in the last couple of years.
HRI's Gross Margin of 58.30% is amongst the best of the industry. HRI outperforms 94.00% of its industry peers.
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
HRI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HRI has been increased compared to 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
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.
With a Altman-Z score value of 0.78, HRI is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
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 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
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.
The Current ratio of HRI (1.22) is worse 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
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
HRI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.40%.
Measured over the past years, HRI shows a quite strong growth in Revenue. The Revenue has been growing by 12.29% on average per year.
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-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
With a Price/Earnings ratio of 16.54, HRI is valued correctly.
HRI's Price/Earnings ratio is a bit cheaper when compared to the industry. HRI is cheaper than 76.00% of the companies in the same industry.
HRI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 17.46, HRI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HRI is valued a bit cheaper than 64.00% of the companies in the same industry.
HRI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 17.46 |
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 82.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
The decent profitability rating of HRI 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
With a Yearly Dividend Yield of 1.79%, 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 84.00% of the companies in the same industry.
HRI's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| 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
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%
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
WACC9.44%
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.