NYSE:HRI

Stock Analysis Report

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Executive Summary

Herc Holdings Inc., through 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.7%

HRI

-2.9%

US Trade Distributors

1.3%

US Market


1 Year Return

-32.1%

HRI

-1.1%

US Trade Distributors

6.1%

US Market

Return vs Industry: HRI underperformed the US Trade Distributors industry which returned 0.8% over the past year.

Return vs Market: HRI underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

HRIIndustryMarket
7 Day-2.7%-2.9%1.3%
30 Day-14.3%-7.9%-0.3%
90 Day24.5%17.7%16.6%
1 Year-32.1%-32.1%0.9%-1.1%8.4%6.1%
3 Year-33.9%-33.9%17.7%12.3%35.8%26.9%
5 Yearn/a25.2%16.1%62.7%44.7%

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?

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HRI ($29.35) is trading below our estimate of fair value ($46.73)

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 (16.7x) compared to the Trade Distributors industry average (15x).

PE vs Market: HRI is poor value based on its PE Ratio (16.7x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: HRI is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: HRI is overvalued based on its PB Ratio (1.4x) compared to the US Trade Distributors industry average (1.3x).


Next Steps

Future Growth

How is Herc Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRI's forecast earnings growth (27.9% per year) is above the savings rate (2.2%).

Earnings vs Market: HRI's earnings (27.9% per year) are forecast to grow faster than the US market (22.8% per year).

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

Revenue vs Market: HRI's revenue (3.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: HRI's revenue (3.7% 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?

7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRI has a large one-off loss of $72.7M impacting its March 31 2020 financial results.

Growing Profit Margin: HRI's current net profit margins (2.6%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: HRI's earnings have grown by 7.6% 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 (-30.5%) over the past year, making it difficult to compare to the Trade Distributors industry average (-9.9%).


Return on Equity

High ROE: HRI's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Herc Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HRI's short term assets ($395.5M) exceed its short term liabilities ($299.1M).

Long Term Liabilities: HRI's short term assets ($395.5M) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: HRI's debt to equity ratio (343.9%) is considered high.

Reducing Debt: HRI's debt to equity ratio has increased from 37.7% to 343.9% over the past 5 years.

Debt Coverage: HRI's debt is well covered by operating cash flow (28.4%).

Interest Coverage: HRI's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

3.0yrs

Average management tenure


CEO

Larry Silber (63yo)

5.17yrs

Tenure

US$4,183,267

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 ($USD4.18M) is above average for companies of similar size in the US market ($USD3.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lawrence Silber
President5.17yrsUS$4.18m0.36% $3.1m
Mark Irion
Senior VP & CFO2.08yrsUS$1.56m0.030% $257.0k
Tamir Peres
Senior VP & Chief Information Officer2.83yrsUS$1.16m0.032% $276.1k
Christian Cunningham
Senior VP & Chief Human Resources Officer4.08yrsUS$1.18m0.11% $900.6k
Aaron Birnbaum
Senior VP & COO0.50yrno data0.042% $358.8k
W. Humphrey
VP, Controller & Chief Accounting Officer3.25yrsUS$895.60k0.018% $158.1k
Elizabeth Higashi
Vice President of Investor Relationsno datano datano data
Samuel Sheek
Senior VP0.67yrno datano data
Paul Dickard
Vice President of Communicationsno datano datano data
Mustally Hussain
VP & Corporate Treasurer4.5yrsno datano data

3.0yrs

Average Tenure

54yo

Average Age

Experienced Management: HRI's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lawrence Silber
President5.17yrsUS$4.18m0.36% $3.1m
Nicholas Graziano
Independent Director2.17yrsUS$185.06kno data
Jean Holley
Independent Director2.92yrsUS$196.69k0.012% $101.0k
Herbert Henkel
Independent Non-Executive Chairman4.08yrsUS$329.27k0.089% $762.1k
Patrick Campbell
Independent Director4.08yrsUS$201.70k0.023% $200.2k
Jacob Katz
Independent Director2.92yrsUS$196.69k0.013% $110.0k
Michael Kelly
Independent Director4.08yrsUS$194.20k0.032% $275.9k
James Browning
Independent Director4.08yrsUS$206.70k0.024% $207.3k
Mary Salomone
Independent Director4.08yrsUS$201.70k0.0015% $12.6k
Jonathan Frates
Independent Director0.92yrUS$121.28kno data

4.1yrs

Average Tenure

63yo

Average Age

Experienced Board: HRI's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HRI insiders have bought and sold the same number of shares 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$854.414m
  • Shares outstanding: 29.11m
  • 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., through 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. The company also provides ProSolutions, an industry specific solution based services, such as power generation, climate control, remediation and restoration, and studio and production equipment; and ProContractor professional grade tools. In addition, it offers various services, including repair, maintenance, equipment management, and safety training; and equipment re-rental and on-site support services, as well as ancillary services, such as equipment transport, rental protection, cleaning, refueling, and labor. Further, the company sells used equipment and contractor supplies, such as construction consumables, tools, small equipment, and safety supplies. 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. The company sells its products through its sales team and industry catalogs, as well as through participation and sponsorship of industry events, trade shows, and Internet. 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 Analysis2020/07/09 23:58
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.