HERC HOLDINGS INC (HRI)
US42704L1044 - Common Stock
Overall HRI gets a fundamental rating of 5 out of 10. We evaluated HRI against 48 industry peers in the Trading Companies & Distributors industry. While HRI belongs to the best of the industry regarding profitability, there are concerns on its financial health. HRI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HRI had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 4.26%, HRI is in line with its industry, outperforming 48.94% of the companies in the same industry.
The Return On Equity of HRI (23.56%) is better than 87.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.25%, HRI is in line with its industry, outperforming 44.68% of the companies in the same industry.
HRI had an Average Return On Invested Capital over the past 3 years of 7.71%. This is below the industry average of 9.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.26% | ||
| ROE | 23.56% | ||
| ROIC | 7.25% |
ROA(3y)5.15%
ROA(5y)3.75%
ROE(3y)26.65%
ROE(5y)19.45%
ROIC(3y)7.71%
ROIC(5y)6.69%
1.3 Margins
HRI has a better Profit Margin (10.09%) than 80.85% of its industry peers.
HRI's Profit Margin has improved in the last couple of years.
HRI's Operating Margin of 20.44% is fine compared to the rest of the industry. HRI outperforms 78.72% of its industry peers.
HRI's Operating Margin has improved in the last couple of years.
The Gross Margin of HRI (61.24%) is better than 93.62% of its industry peers.
In the last couple of years the Gross Margin of HRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.44% | ||
| PM (TTM) | 10.09% | ||
| GM | 61.24% |
OM growth 3Y20.3%
OM growth 5Y14.16%
PM growth 3Y36.72%
PM growth 5Y24.78%
GM growth 3Y4.47%
GM growth 5Y5.85%
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 less shares outstanding than it did 1 year ago.
HRI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HRI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that HRI is in the distress zone and has some risk of bankruptcy.
HRI's Altman-Z score of 1.33 is on the low side compared to the rest of the industry. HRI is outperformed by 78.72% of its industry peers.
The Debt to FCF ratio of HRI is 91.15, which is on the high side as it means it would take HRI, 91.15 years of fcf income to pay off all of its debts.
HRI has a Debt to FCF ratio (91.15) which is in line with its industry peers.
HRI has a Debt/Equity ratio of 2.89. This is a high value indicating a heavy dependency on external financing.
HRI has a Debt to Equity ratio of 2.89. This is amonst the worse of the industry: HRI underperforms 82.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 91.15 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.69
WACC10.55%
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 87.23% of its industry peers.
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's Quick ratio of 1.22 is in line compared to the rest of the industry. HRI outperforms 51.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
HRI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.56%.
HRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.73% yearly.
Looking at the last year, HRI shows a small growth in Revenue. The Revenue has grown by 6.58% in the last year.
Measured over the past years, HRI shows a quite strong growth in Revenue. The Revenue has been growing by 10.67% on average per year.
EPS 1Y (TTM)0.56%
EPS 3Y60.14%
EPS 5Y38.73%
EPS Q2Q%8.75%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y22.59%
Revenue growth 5Y10.67%
Sales Q2Q%6.28%
3.2 Future
Based on estimates for the next years, HRI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.24% on average per year.
The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y12.06%
EPS Next 2Y10.92%
EPS Next 3Y13.58%
EPS Next 5Y9.24%
Revenue Next Year6.38%
Revenue Next 2Y6.68%
Revenue Next 3Y6.79%
Revenue Next 5Y5.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HRI is valuated correctly with a Price/Earnings ratio of 15.01.
The rest of the industry has a similar Price/Earnings ratio as HRI.
Compared to an average S&P500 Price/Earnings ratio of 27.17, HRI is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.47 indicates a correct valuation of HRI.
Based on the Price/Forward Earnings ratio, HRI is valued a bit cheaper than 72.34% of the companies in the same industry.
HRI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
87.23% of the companies in the same industry are more expensive than HRI, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as HRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 113.84 | ||
| EV/EBITDA | 6.4 |
4.3 Compensation for Growth
HRI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HRI has a very decent profitability rating, which may justify a higher PE ratio.
HRI's earnings are expected to grow with 13.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)0.39
EPS Next 2Y10.92%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, HRI has a reasonable but not impressive dividend return.
HRI's Dividend Yield is a higher than the industry average which is at 1.86.
Compared to the average S&P500 Dividend Yield of 2.30, HRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
HRI has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HRI pays out 21.55% of its income as dividend. This is a sustainable payout ratio.
DP21.55%
EPS Next 2Y10.92%
EPS Next 3Y13.58%
HERC HOLDINGS INC
NYSE:HRI (1/2/2025, 12:04:55 PM)
188.39
-0.94 (-0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners95.42%
Inst Owner Change4.78%
Ins Owners1.33%
Ins Owner Change-12.7%
Market Cap5.35B
Analysts73.85
Price Target247.86 (31.57%)
Short Float %2.67%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Dividend Growth(5Y)N/A
DP21.55%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.66%
Min EPS beat(2)-11.54%
Max EPS beat(2)-3.79%
EPS beat(4)1
Avg EPS beat(4)-3.56%
Min EPS beat(4)-11.54%
Max EPS beat(4)8.72%
EPS beat(8)2
Avg EPS beat(8)-3.66%
EPS beat(12)3
Avg EPS beat(12)-3.4%
EPS beat(16)6
Avg EPS beat(16)21.4%
Revenue beat(2)2
Avg Revenue beat(2)1.75%
Min Revenue beat(2)0.91%
Max Revenue beat(2)2.59%
Revenue beat(4)3
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-4.37%
Max Revenue beat(4)2.59%
Revenue beat(8)5
Avg Revenue beat(8)-0.1%
Revenue beat(12)8
Avg Revenue beat(12)0.09%
Revenue beat(16)11
Avg Revenue beat(16)0.94%
PT rev (1m)10.58%
PT rev (3m)38.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)1.41%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 12.47 | ||
| P/S | 1.55 | ||
| P/FCF | 113.84 | ||
| P/OCF | 4.52 | ||
| P/B | 3.62 | ||
| P/tB | 21.75 | ||
| EV/EBITDA | 6.4 |
EPS(TTM)12.55
EY6.66%
EPS(NY)15.11
Fwd EY8.02%
FCF(TTM)1.65
FCFY0.88%
OCF(TTM)41.69
OCFY22.13%
SpS121.44
BVpS52.01
TBVpS8.66
PEG (NY)1.24
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.26% | ||
| ROE | 23.56% | ||
| ROCE | 9.43% | ||
| ROIC | 7.25% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 8.88% | ||
| OM | 20.44% | ||
| PM (TTM) | 10.09% | ||
| GM | 61.24% | ||
| FCFM | 1.36% |
ROA(3y)5.15%
ROA(5y)3.75%
ROE(3y)26.65%
ROE(5y)19.45%
ROIC(3y)7.71%
ROIC(5y)6.69%
ROICexc(3y)7.79%
ROICexc(5y)6.76%
ROICexgc(3y)9.22%
ROICexgc(5y)7.89%
ROCE(3y)10.03%
ROCE(5y)8.7%
ROICexcg growth 3Y17.96%
ROICexcg growth 5Y11.03%
ROICexc growth 3Y16.89%
ROICexc growth 5Y10.28%
OM growth 3Y20.3%
OM growth 5Y14.16%
PM growth 3Y36.72%
PM growth 5Y24.78%
GM growth 3Y4.47%
GM growth 5Y5.85%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 91.15 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 145.21% | ||
| Cap/Sales | 32.97% | ||
| Interest Coverage | 2.94 | ||
| Cash Conversion | 79.57% | ||
| Profit Quality | 13.51% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 1.33 |
F-Score6
WACC10.55%
ROIC/WACC0.69
Cap/Depr(3y)176.17%
Cap/Depr(5y)151.81%
Cap/Sales(3y)40.79%
Cap/Sales(5y)35.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.56%
EPS 3Y60.14%
EPS 5Y38.73%
EPS Q2Q%8.75%
EPS Next Y12.06%
EPS Next 2Y10.92%
EPS Next 3Y13.58%
EPS Next 5Y9.24%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y22.59%
Revenue growth 5Y10.67%
Sales Q2Q%6.28%
Revenue Next Year6.38%
Revenue Next 2Y6.68%
Revenue Next 3Y6.79%
Revenue Next 5Y5.49%
EBIT growth 1Y6.33%
EBIT growth 3Y47.48%
EBIT growth 5Y26.35%
EBIT Next Year126.99%
EBIT Next 3Y36.98%
EBIT Next 5Y22.16%
FCF growth 1Y121.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.04%
OCF growth 3Y21.14%
OCF growth 5Y14.2%