HERC HOLDINGS INC (HRI)
US42704L1044 - Common Stock
Taking everything into account, HRI scores 5 out of 10 in our fundamental rating. HRI was compared to 51 industry peers in the Trading Companies & Distributors industry. HRI scores excellent on profitability, but there are concerns on its financial health. 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.
In the past year HRI had a positive cash flow from operations.
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
With a Return On Assets value of 4.79%, HRI perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
HRI has a Return On Equity of 26.38%. This is in the better half of the industry: HRI outperforms 76.47% of its industry peers.
HRI's Return On Invested Capital of 7.76% is in line compared to the rest of the industry. HRI outperforms 45.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HRI is below the industry average of 11.57%.
The 3 year average ROIC (7.71%) for HRI is below the current ROIC(7.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 26.38% | ||
| ROIC | 7.76% |
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 Profit Margin of 10.31%. This is in the better half of the industry: HRI outperforms 70.59% of its industry peers.
In the last couple of years the Profit Margin of HRI has grown nicely.
HRI has a Operating Margin of 20.32%. This is in the better half of the industry: HRI outperforms 74.51% of its industry peers.
In the last couple of years the Operating Margin of HRI has grown nicely.
HRI's Gross Margin of 60.91% is amongst the best of the industry. HRI outperforms 94.12% of its industry peers.
HRI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.32% | ||
| PM (TTM) | 10.31% | ||
| GM | 60.91% |
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
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 reduced compared to 1 year ago.
HRI has less shares outstanding than it did 5 years ago.
HRI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that HRI is in the distress zone and has some risk of bankruptcy.
HRI has a worse Altman-Z score (1.35) than 74.51% of its industry peers.
A Debt/Equity ratio of 2.87 is on the high side and indicates that HRI has dependencies on debt financing.
The Debt to Equity ratio of HRI (2.87) is worse than 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.86
WACC8.98%
2.3 Liquidity
HRI has a Current Ratio of 1.51. 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 (1.51) is worse than 62.75% of its industry peers.
HRI has a Quick Ratio of 1.51. 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 1.51 is fine compared to the rest of the industry. HRI outperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.22% over the past year.
The Earnings Per Share has been growing by 38.73% on average over the past years. This is a very strong growth
The Revenue has grown by 14.92% in the past year. This is quite good.
The Revenue has been growing by 10.67% on average over the past years. This is quite good.
EPS 1Y (TTM)5.22%
EPS 3Y60.14%
EPS 5Y38.73%
EPS growth Q2Q0.43%
Revenue 1Y (TTM)14.92%
Revenue growth 3Y22.59%
Revenue growth 5Y10.67%
Revenue growth Q2Q8.65%
3.2 Future
The Earnings Per Share is expected to grow by 9.24% on average over the next years. This is quite good.
HRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.
EPS Next Y12.87%
EPS Next 2Y13.96%
EPS Next 3Y15.06%
EPS Next 5Y9.24%
Revenue Next Year3.7%
Revenue Next 2Y5.72%
Revenue Next 3Y6.83%
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
A Price/Earnings ratio of 12.03 indicates a correct valuation of HRI.
HRI's Price/Earnings ratio is a bit cheaper when compared to the industry. HRI is cheaper than 72.55% of the companies in the same industry.
HRI is valuated cheaply when we compare the Price/Earnings ratio to 28.02, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.27, which indicates a very decent valuation of HRI.
Based on the Price/Forward Earnings ratio, HRI is valued cheaper than 92.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.58. HRI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 9.27 |
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 84.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.45 |
4.3 Compensation for Growth
HRI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HRI may justify a higher PE ratio.
HRI's earnings are expected to grow with 15.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)0.31
EPS Next 2Y13.96%
EPS Next 3Y15.06%
5. Dividend
5.1 Amount
HRI has a Yearly Dividend Yield of 1.79%.
HRI's Dividend Yield is rather good when compared to the industry average which is at 1.73. HRI pays more dividend than 84.31% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, HRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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
21.16% of the earnings are spent on dividend by HRI. This is a low number and sustainable payout ratio.
DP21.16%
EPS Next 2Y13.96%
EPS Next 3Y15.06%
HERC HOLDINGS INC
NYSE:HRI (5/6/2024, 6:05:08 PM)
After market: 147.86 0 (0%)147.86
+0.96 (+0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 9.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.93
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 26.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.32% | ||
| PM (TTM) | 10.31% | ||
| GM | 60.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.22%
EPS 3Y60.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.92%
Revenue growth 3Y22.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y