NYSE:HRI

Stock Analysis Report

Executive Summary

Herc Holdings Inc., together with its subsidiaries, operates as an equipment rental supplier primarily in the United States and internationally.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Herc Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HRI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

HRI

-0.6%

US Trade Distributors

-1.1%

US Market


1 Year Return

1.4%

HRI

9.2%

US Trade Distributors

17.8%

US Market

Return vs Industry: HRI underperformed the US Trade Distributors industry which returned 9.1% over the past year.

Return vs Market: HRI underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

HRIIndustryMarket
7 Day-0.7%-0.6%-1.1%
30 Day-4.2%0.3%1.5%
90 Day-9.5%-0.5%6.6%
1 Year1.4%1.4%11.3%9.2%20.2%17.8%
3 Year-15.6%-15.6%20.5%14.9%47.5%38.1%
5 Yearn/a42.9%32.2%71.2%52.4%

Price Volatility Vs. Market

How volatile is Herc Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Herc Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HRI ($42.74) is trading below our estimate of fair value ($111.34)

Significantly Below Fair Value: HRI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HRI is poor value based on its PE Ratio (26.8x) compared to the Trade Distributors industry average (15.9x).

PE vs Market: HRI is poor value based on its PE Ratio (26.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HRI is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: HRI is overvalued based on its PB Ratio (2.1x) compared to the US Trade Distributors industry average (1.6x).


Next Steps

Future Growth

How is Herc Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRI's forecast earnings growth (27.4% per year) is above the savings rate (1.7%).

Earnings vs Market: HRI's earnings (27.4% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HRI's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HRI's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HRI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Herc Holdings performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRI has a large one-off loss of $60.5M impacting its September 30 2019 financial results.

Growing Profit Margin: HRI's current net profit margins (2.3%) are lower than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: HRI's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: HRI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HRI had negative earnings growth (-81.7%) over the past year, making it difficult to compare to the Trade Distributors industry average (5.2%).


Return on Equity

High ROE: HRI's Return on Equity (7.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Herc Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HRI's short term assets ($381.8M) do not cover its short term liabilities ($396.2M).

Long Term Liabilities: HRI's short term assets ($381.8M) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: HRI's debt to equity ratio (379%) is considered high.

Reducing Debt: Insufficient data to determine if HRI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HRI's debt is well covered by operating cash flow (27.8%).

Interest Coverage: HRI's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: HRI has a low level of unsold assets or inventory.

Debt Coverage by Assets: HRI's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Herc Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HRI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HRI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HRI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HRI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HRI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Larry Silber (62yo)

4.8yrs

Tenure

US$4,827,763

Compensation

Mr. Lawrence H. Silber, also known as Larry, has been the Chief Executive Officer and President at Herc Rentals Inc. since May 14, 2015 and Herc Holdings, Inc. since May 21, 2015. Mr. Silber served as an I ...


CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD4.83M) is about average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Larry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lawrence Silber
President4.8yrsUS$4.83m0.33% $4.1m
Mark Irion
Senior VP & CFO1.7yrsUS$2.47mno data
W. Humphrey
VP, Controller & Chief Accounting Officer2.8yrsUS$895.60k0.0010% $12.7k
Tamir Peres
Senior VP & Chief Information Officer2.4yrsUS$1.26m0.029% $359.5k
Maryann Waryjas
Special Counsel & Advisor to the CEO0.3yrsUS$1.52m0.10% $1.3m
Aaron Birnbaum
Senior VP & COO0.08yrsno data0.043% $533.2k
Elizabeth Higashi
Vice President of Investor Relations0yrsno datano data
Samuel Sheek
Senior VP0.3yrsno datano data
Paul Dickard
Vice President of Communications0yrsno datano data
Christian Cunningham
Senior VP & Chief Human Resources Officer3.7yrsUS$1.04m0.098% $1.2m

2.0yrs

Average Tenure

55yo

Average Age

Experienced Management: HRI's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lawrence Silber
President4.8yrsUS$4.83m0.33% $4.1m
Nicholas Graziano
Independent Director1.8yrsUS$140.70kno data
Jean Holley
Independent Director2.5yrsUS$185.04k0.012% $147.1k
Herbert Henkel
Non-Executive Chairman3.7yrsUS$317.67k0.035% $427.5k
Patrick Campbell
Independent Director3.7yrsUS$190.04k0.018% $218.7k
Jacob Katz
Independent Director2.5yrsUS$185.04k0.0071% $87.2k
Michael Kelly
Independent Director3.7yrsUS$182.54k0.024% $291.6k
James Browning
Independent Director3.7yrsUS$257.09k0.019% $229.0k
Mary Salomone
Independent Director3.7yrsUS$190.04k0.0015% $18.5k
Louis Pastor
Independent Director3.7yrsUS$182.54k0.024% $291.6k

3.7yrs

Average Tenure

62yo

Average Age

Experienced Board: HRI's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Herc Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Herc Holdings Inc.
  • Ticker: HRI
  • Exchange: NYSE
  • Founded: 1965
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$1.232b
  • Shares outstanding: 28.82m
  • Website: https://ir.hercrentals.com

Number of Employees


Location

  • Herc Holdings Inc.
  • 27500 Riverview Center Boulevard
  • Suite 100
  • Bonita Springs
  • Florida
  • 34134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRINYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2016
H9B1DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2016
HRI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2016
0J4LLSE (London Stock Exchange)YesCommon StockGBUSDJul 2016

Biography

Herc Holdings Inc., together with its subsidiaries, operates as an equipment rental supplier primarily in the United States and internationally. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment; and provides ProSolutions, an industry specific solution based services, such as pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment. The company also sells used equipment and contractor supplies, such as construction consumables, tools, small equipment, and safety supplies; provides repair, maintenance, equipment management, and safety training services, as well as offers ancillary services, such as equipment transport, rental protection, cleaning, refueling, and labor. It serves non-residential and residential construction, specialty trade, restoration, remediation and environment, and facility maintenance contractors; industrial manufacturing industries, including automotive and aerospace, power, metals and mining, agriculture, pulp, paper and wood, food and beverage, and refineries and petrochemical industries; infrastructure and government sectors; and commercial and retail service, hospitality, healthcare, recreation, entertainment production, and special event management customers through its sales team, industry catalogs, as well as through participation and sponsorship of industry events, trade shows, and Internet. As of February 22, 2019, it operated approximately 270 locations in the United States, Canada, China, the United Kingdom, Saudi Arabia, and Qatar. Herc Holdings Inc. was founded in 1965 and is based in Bonita Springs, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 02:06
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.