HERC HOLDINGS INC (HRI) Fundamental Analysis & Valuation
NYSE:HRI • US42704L1044
137.93 USD
-0.26 (-0.19%)
At close: Mar 4, 2026
137.93 USD
0 (0%)
After Hours: 3/4/2026, 7:00:00 PM
This HRI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
HRI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 47 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. HRI Profitability Analysis
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 0.01%, HRI is doing worse than 61.70% of the companies in the same industry.
- HRI has a Return On Equity (0.05%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 3.72%, HRI perfoms like the industry average, outperforming 44.68% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HRI is below the industry average of 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.05% | ||
| ROIC | 3.72% |
ROA(3y)2.53%
ROA(5y)3.63%
ROE(3y)14.14%
ROE(5y)19.02%
ROIC(3y)6.14%
ROIC(5y)6.58%
1.3 Margins
- The Profit Margin of HRI (0.02%) is comparable to the rest of the industry.
- HRI's Profit Margin has declined in the last couple of years.
- HRI's Operating Margin of 15.31% is amongst the best of the industry. HRI outperforms 82.98% of its industry peers.
- HRI's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 57.20%, HRI belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
- HRI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.31% | ||
| PM (TTM) | 0.02% | ||
| GM | 57.2% |
OM growth 3Y-9.14%
OM growth 5Y5.7%
PM growth 3Y-87.62%
PM growth 5Y-64.65%
GM growth 3Y-3.45%
GM growth 5Y1.39%
2. HRI Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRI is destroying value.
- HRI has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HRI has more shares outstanding
- HRI has a worse debt/assets ratio than last year.
2.2 Solvency
- HRI has an Altman-Z score of 0.79. This is a bad value and indicates that HRI is not financially healthy and even has some risk of bankruptcy.
- HRI has a worse Altman-Z score (0.79) than 76.60% of its industry peers.
- HRI has a Debt/Equity ratio of 4.17. This is a high value indicating a heavy dependency on external financing.
- HRI's Debt to Equity ratio of 4.17 is on the low side compared to the rest of the industry. HRI is outperformed by 85.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.41
WACC9.15%
2.3 Liquidity
- HRI has a Current Ratio of 1.31. 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 1.31, HRI is not doing good in the industry: 68.09% of the companies in the same industry are doing better.
- A Quick Ratio of 1.31 indicates that HRI should not have too much problems paying its short term obligations.
- HRI's Quick ratio of 1.31 is fine compared to the rest of the industry. HRI outperforms 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. HRI Growth Analysis
3.1 Past
- The earnings per share for HRI have decreased strongly by -42.13% 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 20.06% on average per year.
- HRI shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.65%.
- HRI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.69% yearly.
EPS 1Y (TTM)-42.13%
EPS 3Y-12.87%
EPS 5Y20.06%
EPS Q2Q%-42.18%
Revenue 1Y (TTM)22.65%
Revenue growth 3Y16.91%
Revenue growth 5Y19.69%
Sales Q2Q%27.13%
3.2 Future
- Based on estimates for the next years, HRI will show a very strong growth in Earnings Per Share. The EPS will grow by 30.86% on average per year.
- HRI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.78% yearly.
EPS Next Y22.64%
EPS Next 2Y34.18%
EPS Next 3Y37.4%
EPS Next 5Y30.86%
Revenue Next Year14.62%
Revenue Next 2Y10.06%
Revenue Next 3Y12.89%
Revenue Next 5Y10.78%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. HRI Valuation Analysis
4.1 Price/Earnings Ratio
- HRI is valuated rather expensively with a Price/Earnings ratio of 18.49.
- HRI's Price/Earnings ratio is a bit cheaper when compared to the industry. HRI is cheaper than 78.72% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.03, HRI is valued a bit cheaper.
- A Price/Forward Earnings ratio of 15.08 indicates a correct valuation of HRI.
- HRI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRI is cheaper than 89.36% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of HRI to the average of the S&P500 Index (25.11), we can say HRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HRI is valued cheaply inside the industry as 93.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.25 |
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.
- HRI's earnings are expected to grow with 37.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)0.92
EPS Next 2Y34.18%
EPS Next 3Y37.4%
5. HRI Dividend Analysis
5.1 Amount
- HRI has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.80, HRI pays a better dividend. On top of this HRI pays more dividend than 89.36% of the companies listed in the same industry.
- HRI's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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 8700.00% of its income as dividend. This is not a sustainable payout ratio.
DP8700%
EPS Next 2Y34.18%
EPS Next 3Y37.4%
HRI Fundamentals: All Metrics, Ratios and Statistics
137.93
-0.26 (-0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-17 2026-02-17/bmo
Earnings (Next)04-20 2026-04-20
Inst Owners104.38%
Inst Owner Change12.3%
Ins Owners1.99%
Ins Owner Change7.74%
Market Cap4.59B
Revenue(TTM)4.38B
Net Income(TTM)1.00M
Analysts78.46
Price Target181.05 (31.26%)
Short Float %5.93%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend2.82
Dividend Growth(5Y)N/A
DP8700%
Div Incr Years3
Div Non Decr Years3
Ex-Date02-18 2026-02-18 (0.7)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.82%
Min EPS beat(2)-0.32%
Max EPS beat(2)7.96%
EPS beat(4)2
Avg EPS beat(4)-3.39%
Min EPS beat(4)-42.15%
Max EPS beat(4)20.95%
EPS beat(8)3
Avg EPS beat(8)-3.79%
EPS beat(12)4
Avg EPS beat(12)-4.05%
EPS beat(16)4
Avg EPS beat(16)-4.08%
Revenue beat(2)0
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-3.9%
Max Revenue beat(2)-0.31%
Revenue beat(4)2
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-3.9%
Max Revenue beat(4)1.09%
Revenue beat(8)6
Avg Revenue beat(8)0.54%
Revenue beat(12)7
Avg Revenue beat(12)-0.19%
Revenue beat(16)11
Avg Revenue beat(16)0.12%
PT rev (1m)4.48%
PT rev (3m)7.66%
EPS NQ rev (1m)-58.65%
EPS NQ rev (3m)-58.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)-8.26%
Revenue NQ rev (3m)-8.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 15.08 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | 4.23 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.25 |
EPS(TTM)7.46
EY5.41%
EPS(NY)9.15
Fwd EY6.63%
FCF(TTM)-5.08
FCFYN/A
OCF(TTM)32.61
OCFY23.64%
SpS131.53
BVpS58.55
TBVpS-77.85
PEG (NY)0.82
PEG (5Y)0.92
Graham Number99.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.05% | ||
| ROCE | 5.14% | ||
| ROIC | 3.72% | ||
| ROICexc | 3.74% | ||
| ROICexgc | 5.75% | ||
| OM | 15.31% | ||
| PM (TTM) | 0.02% | ||
| GM | 57.2% | ||
| FCFM | N/A |
ROA(3y)2.53%
ROA(5y)3.63%
ROE(3y)14.14%
ROE(5y)19.02%
ROIC(3y)6.14%
ROIC(5y)6.58%
ROICexc(3y)6.2%
ROICexc(5y)6.65%
ROICexgc(3y)7.81%
ROICexgc(5y)8.17%
ROCE(3y)8.47%
ROCE(5y)9.08%
ROICexgc growth 3Y-14.25%
ROICexgc growth 5Y1.65%
ROICexc growth 3Y-21.23%
ROICexc growth 5Y-4.24%
OM growth 3Y-9.14%
OM growth 5Y5.7%
PM growth 3Y-87.62%
PM growth 5Y-64.65%
GM growth 3Y-3.45%
GM growth 5Y1.39%
F-Score3
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.64 | ||
| Cap/Depr | 116.11% | ||
| Cap/Sales | 28.66% | ||
| Interest Coverage | 1.6 | ||
| Cash Conversion | 62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 0.79 |
F-Score3
WACC9.15%
ROIC/WACC0.41
Cap/Depr(3y)153.87%
Cap/Depr(5y)158.92%
Cap/Sales(3y)35.84%
Cap/Sales(5y)36.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.13%
EPS 3Y-12.87%
EPS 5Y20.06%
EPS Q2Q%-42.18%
EPS Next Y22.64%
EPS Next 2Y34.18%
EPS Next 3Y37.4%
EPS Next 5Y30.86%
Revenue 1Y (TTM)22.65%
Revenue growth 3Y16.91%
Revenue growth 5Y19.69%
Sales Q2Q%27.13%
Revenue Next Year14.62%
Revenue Next 2Y10.06%
Revenue Next 3Y12.89%
Revenue Next 5Y10.78%
EBIT growth 1Y-9.83%
EBIT growth 3Y6.22%
EBIT growth 5Y26.52%
EBIT Next Year170.84%
EBIT Next 3Y49.34%
EBIT Next 5Y39.58%
FCF growth 1Y-1156.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.43%
OCF growth 3Y5.78%
OCF growth 5Y12.17%
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 5 / 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 5 / 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 18.49 and the Price/Book (PB) ratio is 2.36.
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 grow by 22.64% in the next year.