HERC HOLDINGS INC (HRI) Stock Fundamental Analysis
NYSE:HRI - US42704L1044 - Common Stock
132.69 USD
+0.09 (+0.07%)
132.69 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HRI. HRI was compared to 48 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HRI had positive earnings in the past year.
In the past year HRI had a positive cash flow from operations.
In the past 5 years HRI has always been profitable.
In the past 5 years HRI always reported a positive cash flow from operatings.
1.2 Ratios
HRI has a worse Return On Assets (0.16%) than 68.75% of its industry peers.
HRI's Return On Equity of 1.20% is on the low side compared to the rest of the industry. HRI is outperformed by 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.17%, HRI is doing worse than 66.67% of the companies in the same industry.
HRI had an Average Return On Invested Capital over the past 3 years of 7.69%. This is below the industry average of 9.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.16% | ||
| ROE | 1.2% | ||
| ROIC | 4.17% |
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 of 0.61% is on the low side compared to the rest of the industry. HRI is outperformed by 66.67% of its industry peers.
HRI's Profit Margin has improved in the last couple of years.
HRI has a better Operating Margin (19.40%) than 79.17% of its industry peers.
HRI's Operating Margin has improved in the last couple of years.
HRI has a Gross Margin of 59.67%. This is amongst the best in the industry. HRI outperforms 91.67% of its industry peers.
In the last couple of years the Gross Margin of HRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.4% | ||
| PM (TTM) | 0.61% | ||
| GM | 59.67% |
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.
Compared to 1 year ago, HRI has more shares outstanding
HRI has less shares outstanding than it did 5 years ago.
HRI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.73, we must say that HRI is in the distress zone and has some risk of bankruptcy.
HRI's Altman-Z score of 0.73 is on the low side compared to the rest of the industry. HRI is outperformed by 93.75% of its industry peers.
A Debt/Equity ratio of 4.37 is on the high side and indicates that HRI has dependencies on debt financing.
HRI's Debt to Equity ratio of 4.37 is on the low side compared to the rest of the industry. HRI is outperformed by 89.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.45
WACC9.29%
2.3 Liquidity
HRI has a Current Ratio of 1.15. 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 Current ratio of 1.15. This is amonst the worse of the industry: HRI underperforms 89.58% of its industry peers.
HRI has a Quick Ratio of 1.15. 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 Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
HRI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.02%.
HRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.42% yearly.
Looking at the last year, HRI shows a quite strong growth in Revenue. The Revenue has grown by 11.41% in the last year.
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)-9.02%
EPS 3Y19.73%
EPS 5Y48.42%
EPS Q2Q%-28.08%
Revenue 1Y (TTM)11.41%
Revenue growth 3Y19.84%
Revenue growth 5Y12.29%
Sales Q2Q%18.16%
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 12.12% yearly.
HRI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.16% yearly.
EPS Next Y-29.11%
EPS Next 2Y-9.31%
EPS Next 3Y2.01%
EPS Next 5Y12.12%
Revenue Next Year25.33%
Revenue Next 2Y19.68%
Revenue Next 3Y16.78%
Revenue Next 5Y14.16%
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.
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
A Price/Earnings ratio of 11.95 indicates a reasonable valuation of HRI.
Based on the Price/Earnings ratio, HRI is valued cheaper than 87.50% of the companies in the same industry.
HRI is valuated cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.51, HRI is valued correctly.
85.42% of the companies in the same industry are more expensive than HRI, based on the Price/Forward Earnings ratio.
HRI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRI is valued cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-9.31%
EPS Next 3Y2.01%
5. Dividend
5.1 Amount
HRI has a Yearly Dividend Yield of 2.36%.
Compared to an average industry Dividend Yield of 2.69, HRI pays a better dividend. On top of this HRI pays more dividend than 83.33% of the companies listed in the same industry.
HRI's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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 343.48% of its income as dividend. This is not a sustainable payout ratio.
DP343.48%
EPS Next 2Y-9.31%
EPS Next 3Y2.01%
132.69
+0.09 (+0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.83%
Inst Owner Change11.59%
Ins Owners2.01%
Ins Owner Change0.78%
Market Cap4.41B
Analysts75.38
Price Target153.58 (15.74%)
Short Float %8.07%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend2.72
Dividend Growth(5Y)N/A
DP343.48%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.6%
Min EPS beat(2)-42.15%
Max EPS beat(2)20.95%
EPS beat(4)1
Avg EPS beat(4)-8.78%
Min EPS beat(4)-42.15%
Max EPS beat(4)20.95%
EPS beat(8)2
Avg EPS beat(8)-6.25%
EPS beat(12)3
Avg EPS beat(12)-5.38%
EPS beat(16)4
Avg EPS beat(16)-4.53%
Revenue beat(2)2
Avg Revenue beat(2)0.73%
Min Revenue beat(2)0.38%
Max Revenue beat(2)1.09%
Revenue beat(4)4
Avg Revenue beat(4)1.48%
Min Revenue beat(4)0.38%
Max Revenue beat(4)2.59%
Revenue beat(8)7
Avg Revenue beat(8)0.55%
Revenue beat(12)9
Avg Revenue beat(12)0.35%
Revenue beat(16)11
Avg Revenue beat(16)0.18%
PT rev (1m)-13.71%
PT rev (3m)-14.02%
EPS NQ rev (1m)-6.26%
EPS NQ rev (3m)-31.1%
EPS NY rev (1m)-15.25%
EPS NY rev (3m)-28.23%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)31.22%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)21.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 12.51 | ||
| P/S | 1.17 | ||
| P/FCF | N/A | ||
| P/OCF | 4.09 | ||
| P/B | 2.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.96 |
EPS(TTM)11.1
EY8.37%
EPS(NY)10.6
Fwd EY7.99%
FCF(TTM)-2.77
FCFYN/A
OCF(TTM)32.46
OCFY24.46%
SpS113.69
BVpS57.49
TBVpS-78.58
PEG (NY)N/A
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.16% | ||
| ROE | 1.2% | ||
| ROCE | 5.55% | ||
| ROIC | 4.17% | ||
| ROICexc | 4.19% | ||
| ROICexgc | 6.38% | ||
| OM | 19.4% | ||
| PM (TTM) | 0.61% | ||
| GM | 59.67% | ||
| 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-Score3
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.22 | ||
| Cap/Depr | 135.06% | ||
| Cap/Sales | 30.99% | ||
| Interest Coverage | 2.89 | ||
| Cash Conversion | 67.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 0.73 |
F-Score3
WACC9.29%
ROIC/WACC0.45
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)-9.02%
EPS 3Y19.73%
EPS 5Y48.42%
EPS Q2Q%-28.08%
EPS Next Y-29.11%
EPS Next 2Y-9.31%
EPS Next 3Y2.01%
EPS Next 5Y12.12%
Revenue 1Y (TTM)11.41%
Revenue growth 3Y19.84%
Revenue growth 5Y12.29%
Sales Q2Q%18.16%
Revenue Next Year25.33%
Revenue Next 2Y19.68%
Revenue Next 3Y16.78%
Revenue Next 5Y14.16%
EBIT growth 1Y7.95%
EBIT growth 3Y25.3%
EBIT growth 5Y24.59%
EBIT Next Year151.83%
EBIT Next 3Y49.54%
EBIT Next 5Y32.27%
FCF growth 1Y76.74%
FCF growth 3Y-46.1%
FCF growth 5YN/A
OCF growth 1Y0.48%
OCF growth 3Y18.08%
OCF growth 5Y14.02%