HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
NYSE:HRI - New York Stock Exchange, Inc. - US42704L1044 - Common Stock - Currency: USD
HRI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 47 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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years HRI had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.66%, HRI is not doing good in the industry: 61.70% of the companies in the same industry are doing better.
HRI has a Return On Equity (9.43%) which is in line with its industry peers.
HRI has a Return On Invested Capital (7.56%) which is comparable to the rest of the industry.
HRI had an Average Return On Invested Capital over the past 3 years of 7.69%. This is in line with the industry average of 9.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 9.43% | ||
| ROIC | 7.56% |
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
With a Profit Margin value of 3.53%, HRI perfoms like the industry average, outperforming 53.19% of the companies in the same industry.
HRI's Profit Margin has improved in the last couple of years.
HRI has a Operating Margin of 20.11%. This is amongst the best in the industry. HRI outperforms 87.23% of its industry peers.
HRI's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 60.52%, HRI belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
HRI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.11% | ||
| PM (TTM) | 3.53% | ||
| GM | 60.52% |
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
HRI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that HRI is in the distress zone and has some risk of bankruptcy.
HRI has a Altman-Z score of 1.23. This is in the lower half of the industry: HRI underperforms 78.72% of its industry peers.
A Debt/Equity ratio of 3.04 is on the high side and indicates that HRI has dependencies on debt financing.
HRI has a worse Debt to Equity ratio (3.04) than 85.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.23 |
ROIC/WACC0.79
WACC9.55%
2.3 Liquidity
A Current Ratio of 1.50 indicates that HRI should not have too much problems paying its short term obligations.
HRI has a worse Current ratio (1.50) than 68.09% of its industry peers.
HRI has a Quick Ratio of 1.50. This is a normal value and indicates that HRI is financially healthy and should not expect problems in meeting its short term obligations.
HRI has a better Quick ratio (1.50) than 63.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
HRI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.74%.
HRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.42% yearly.
The Revenue has grown by 8.34% 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)-3.74%
EPS 3Y19.73%
EPS 5Y48.42%
EPS Q2Q%-44.92%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y19.84%
Revenue growth 5Y12.29%
Sales Q2Q%7.09%
3.2 Future
The Earnings Per Share is expected to grow by 10.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y-1.24%
EPS Next 2Y8.57%
EPS Next 3Y10.4%
EPS Next 5Y10.33%
Revenue Next Year3.03%
Revenue Next 2Y3.43%
Revenue Next 3Y3.52%
Revenue Next 5Y5.29%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
The Price/Earnings ratio is 9.72, which indicates a very decent valuation of HRI.
91.49% of the companies in the same industry are more expensive than HRI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.35, HRI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.57, the valuation of HRI can be described as very cheap.
Based on the Price/Forward Earnings ratio, HRI is valued cheaply inside the industry as 89.36% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.19. HRI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than HRI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.69 |
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)0.2
EPS Next 2Y8.57%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
HRI has a Yearly Dividend Yield of 2.51%.
Compared to an average industry Dividend Yield of 2.26, HRI pays a better dividend. On top of this HRI pays more dividend than 87.23% of the companies listed in the same industry.
HRI's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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 pays out 60.94% of its income as dividend. This is not a sustainable payout ratio.
DP60.94%
EPS Next 2Y8.57%
EPS Next 3Y10.4%
114.98
+3.3 (+2.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners92.32%
Inst Owner Change5.6%
Ins Owners2.01%
Ins Owner Change4.97%
Market Cap3.28B
Analysts75.71
Price Target168.81 (46.82%)
Short Float %11.21%
Short Ratio6.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend2.72
Dividend Growth(5Y)N/A
DP60.94%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.13%
Min EPS beat(2)-42.15%
Max EPS beat(2)-10.11%
EPS beat(4)0
Avg EPS beat(4)-16.9%
Min EPS beat(4)-42.15%
Max EPS beat(4)-3.79%
EPS beat(8)1
Avg EPS beat(8)-10.72%
EPS beat(12)2
Avg EPS beat(12)-7.68%
EPS beat(16)4
Avg EPS beat(16)-4.26%
Revenue beat(2)2
Avg Revenue beat(2)1.13%
Min Revenue beat(2)0.38%
Max Revenue beat(2)1.87%
Revenue beat(4)4
Avg Revenue beat(4)1.44%
Min Revenue beat(4)0.38%
Max Revenue beat(4)2.59%
Revenue beat(8)6
Avg Revenue beat(8)0.1%
Revenue beat(12)9
Avg Revenue beat(12)0.31%
Revenue beat(16)11
Avg Revenue beat(16)0.46%
PT rev (1m)1%
PT rev (3m)-20.43%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.11%
Revenue NQ rev (1m)3.48%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 7.57 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 2.83 | ||
| P/B | 2.41 | ||
| P/tB | 29.26 | ||
| EV/EBITDA | 4.69 |
EPS(TTM)11.83
EY10.29%
EPS(NY)15.19
Fwd EY13.21%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)40.56
OCFY35.28%
SpS127.19
BVpS47.65
TBVpS3.93
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 9.43% | ||
| ROCE | 10.08% | ||
| ROIC | 7.56% | ||
| ROICexc | 7.61% | ||
| ROICexgc | 9.21% | ||
| OM | 20.11% | ||
| PM (TTM) | 3.53% | ||
| GM | 60.52% | ||
| 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%
ROICexcg growth 3Y2.77%
ROICexcg 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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 148.18% | ||
| Cap/Sales | 33.6% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 74.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 1.23 |
F-Score4
WACC9.55%
ROIC/WACC0.79
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)-3.74%
EPS 3Y19.73%
EPS 5Y48.42%
EPS Q2Q%-44.92%
EPS Next Y-1.24%
EPS Next 2Y8.57%
EPS Next 3Y10.4%
EPS Next 5Y10.33%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y19.84%
Revenue growth 5Y12.29%
Sales Q2Q%7.09%
Revenue Next Year3.03%
Revenue Next 2Y3.43%
Revenue Next 3Y3.52%
Revenue Next 5Y5.29%
EBIT growth 1Y7.21%
EBIT growth 3Y25.3%
EBIT growth 5Y24.59%
EBIT Next Year109.75%
EBIT Next 3Y32.73%
EBIT Next 5Y25.96%
FCF growth 1Y81.14%
FCF growth 3Y-46.1%
FCF growth 5YN/A
OCF growth 1Y14.6%
OCF growth 3Y18.08%
OCF growth 5Y14.02%