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Herc Holdings

NYSE:HRI
Snowflake Description

Undervalued with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HRI
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Herc Holdings Inc., together with its subsidiaries, operates as an equipment rental supplier primarily in the United States and internationally. The last earnings update was 25 days ago. More info.


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  • Herc Holdings has significant price volatility in the past 3 months.
HRI Share Price and Events
7 Day Returns
-8%
NYSE:HRI
-3.3%
US Trade Distributors
-1.4%
US Market
1 Year Returns
-34.9%
NYSE:HRI
-11.7%
US Trade Distributors
1.6%
US Market
HRI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Herc Holdings (HRI) -8% -22.4% -9.6% -34.9% - -
US Trade Distributors -3.3% -8.8% -6.6% -11.7% 24% 3.5%
US Market -1.4% -3.9% 0.1% 1.6% 33.2% 38.2%
1 Year Return vs Industry and Market
  • HRI underperformed the Trade Distributors industry which returned -11.7% over the past year.
  • HRI underperformed the Market in United States of America which returned 1.6% over the past year.
Price Volatility
HRI
Industry
5yr Volatility vs Market

HRI Value

 Is Herc Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Herc Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Herc Holdings.

NYSE:HRI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HRI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.894 (1 + (1- 21%) (220.43%))
1.973
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.973 * 5.96%)
14.49%

Discounted Cash Flow Calculation for NYSE:HRI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Herc Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HRI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.49%)
2019 108.85 Analyst x2 95.07
2020 179.15 Analyst x2 136.68
2021 296.00 Analyst x1 197.24
2022 400.40 Est @ 35.27% 233.05
2023 502.54 Est @ 25.51% 255.48
2024 596.39 Est @ 18.68% 264.82
2025 679.24 Est @ 13.89% 263.44
2026 750.85 Est @ 10.54% 254.36
2027 812.41 Est @ 8.2% 240.39
2028 865.69 Est @ 6.56% 223.74
Present value of next 10 years cash flows $2,164.27
NYSE:HRI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $865.69 × (1 + 2.73%) ÷ (14.49% – 2.73%)
$7,563.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,563.16 ÷ (1 + 14.49%)10
$1,954.69
NYSE:HRI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,164.27 + $1,954.69
$4,118.96
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,118.96 / 28.66
$143.73
NYSE:HRI Discount to Share Price
Calculation Result
Value per share (USD) From above. $143.73
Current discount Discount to share price of $36.89
= -1 x ($36.89 - $143.73) / $143.73
74.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Herc Holdings is available for.
Intrinsic value
>50%
Share price is $36.89 vs Future cash flow value of $143.73
Current Discount Checks
For Herc Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Herc Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Herc Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Herc Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Herc Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HRI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.55
NYSE:HRI Share Price ** NYSE (2019-05-24) in USD $36.89
United States of America Trade Distributors Industry PE Ratio Median Figure of 41 Publicly-Listed Trade Distributors Companies 15.47x
United States of America Market PE Ratio Median Figure of 3,086 Publicly-Listed Companies 17.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Herc Holdings.

NYSE:HRI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HRI Share Price ÷ EPS (both in USD)

= 36.89 ÷ 2.55

14.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Herc Holdings is good value based on earnings compared to the US Trade Distributors industry average.
  • Herc Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Herc Holdings's expected growth come at a high price?
Raw Data
NYSE:HRI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
19.7%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 33 Publicly-Listed Trade Distributors Companies 1.28x
United States of America Market PEG Ratio Median Figure of 2,121 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:HRI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.48x ÷ 19.7%

0.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Herc Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Herc Holdings's assets?
Raw Data
NYSE:HRI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $19.78
NYSE:HRI Share Price * NYSE (2019-05-24) in USD $36.89
United States of America Trade Distributors Industry PB Ratio Median Figure of 53 Publicly-Listed Trade Distributors Companies 1.57x
United States of America Market PB Ratio Median Figure of 5,208 Publicly-Listed Companies 1.8x
NYSE:HRI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HRI Share Price ÷ Book Value per Share (both in USD)

= 36.89 ÷ 19.78

1.86x

* Primary Listing of Herc Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Herc Holdings is overvalued based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess Herc Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Herc Holdings has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HRI Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Herc Holdings expected to grow at an attractive rate?
  • Herc Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Herc Holdings's earnings growth is expected to exceed the United States of America market average.
  • Herc Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HRI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HRI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 19.7%
NYSE:HRI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 1.8%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 15.8%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HRI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HRI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,132 130 3
2020-12-31 2,125 620 114 6
2019-12-31 2,072 585 95 6
NYSE:HRI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,021 561 73
2018-12-31 1,977 559 69
2018-09-30 1,925 463 250
2018-06-30 1,866 448 217
2018-03-31 1,796 388 189
2017-12-31 1,755 349 160
2017-09-30 1,668 316 -67
2017-06-30 1,614 352 -77
2017-03-31 1,579 421 -57
2016-12-31 1,555 433 -20
2016-09-30 1,572 490 72
2016-06-30 1,600 456 90

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Herc Holdings's earnings are expected to grow by 19.7% yearly, however this is not considered high growth (20% yearly).
  • Herc Holdings's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HRI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Herc Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HRI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.65 4.65 4.65 1.00
2020-12-31 3.90 4.33 3.40 4.00
2019-12-31 3.32 3.71 2.91 4.00
NYSE:HRI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.55
2018-12-31 2.43
2018-09-30 8.81
2018-06-30 7.64
2018-03-31 6.69
2017-12-31 5.66
2017-09-30 -2.37
2017-06-30 -2.72
2017-03-31 -2.03
2016-12-31 -0.70
2016-09-30 2.51
2016-06-30 3.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Herc Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Herc Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Herc Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HRI Past Performance

  How has Herc Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Herc Holdings's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Herc Holdings's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Herc Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Herc Holdings's 1-year earnings growth is negative, it can't be compared to the US Trade Distributors industry average.
Earnings and Revenue History
Herc Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Herc Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HRI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,021.10 72.50 311.20
2018-12-31 1,976.70 69.10 314.20
2018-09-30 1,924.70 250.10 306.40
2018-06-30 1,866.10 216.70 312.50
2018-03-31 1,796.40 189.40 315.80
2017-12-31 1,754.50 160.30 322.40
2017-09-30 1,668.00 -67.20 316.10
2017-06-30 1,614.00 -77.00 298.40
2017-03-31 1,578.60 -57.40 293.80
2016-12-31 1,554.80 -19.70 274.50
2016-09-30 1,572.00 71.70 263.00
2016-06-30 1,600.20 89.50 254.00
2016-03-31 1,642.50 108.10 250.90
2015-12-31 1,678.20 111.30 262.60
2014-12-31 1,770.40 89.70 251.40
2013-12-31 1,735.60 98.10 204.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Herc Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Herc Holdings used its assets more efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • Herc Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Herc Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Herc Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HRI Health

 How is Herc Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Herc Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Herc Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Herc Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Herc Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Herc Holdings Company Filings, last reported 1 month ago.

NYSE:HRI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 565.80 2,330.30 24.50
2018-12-31 572.70 2,276.10 27.80
2018-09-30 554.30 2,368.80 18.00
2018-06-30 495.30 2,248.00 44.00
2018-03-31 500.30 2,190.60 43.00
2017-12-31 510.40 2,275.40 41.50
2017-09-30 288.80 2,229.90 19.10
2017-06-30 258.80 2,162.40 12.00
2017-03-31 281.70 2,139.10 24.30
2016-12-31 317.70 2,194.30 24.00
2016-09-30 352.40 2,139.90 51.90
2016-06-30 347.40 2,130.40 42.60
2016-03-31 2,219.80 134.70 12.30
2015-12-31 2,302.00 136.70 15.70
2014-12-31 1,705.30 889.40 18.90
2013-12-31
  • Herc Holdings's level of debt (411.9%) compared to net worth is high (greater than 40%).
  • Unable to establish if Herc Holdings's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (24.1%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Herc Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Herc Holdings has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HRI Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Herc Holdings dividends. Estimated to be 0% next year.
If you bought $2,000 of Herc Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Herc Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Herc Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HRI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2007 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HRI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Herc Holdings has not reported any payouts.
  • Unable to verify if Herc Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Herc Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Herc Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Herc Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Herc Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Herc Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Herc Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HRI Management

 What is the CEO of Herc Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Larry Silber
COMPENSATION $4,827,763
AGE 61
TENURE AS CEO 4 years
CEO Bio

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 Interim Chief Executive Officer and Interim President of SMTC Corporation from May 14, 2013 to January 6, 2014. He served as the Chief Executive Officer and President of Hertz Equipment Rental Corporation from May 20, 2015 to July 9, 2016. He has been a Director of HERC Holdings, Inc. since 2016. He served as a Director of SMTC Corporation from October 19, 2012 to September 10, 2015. He served as an Executive Advisor at Court Square Capital Partners, LLP from April 2014 to May 2015. He led Hayward Industries, the world's largest swimming pool equipment manufacturer as Chief Operating Officer from June 2008 to April 2012. From 1978 to 2008, he worked for Ingersoll Rand in a number of roles of increasing responsibility. He led major Ingersoll Rand business groups including Utility Equipment, Rental and Remarketing and the Equipment and Services businesses. In his career, he led Sales, Marketing and Operations functions in the company's Power Tool Division and Construction and Mining Group. He served as a Director of SMTC Corporation from 2012 to 2015 and serves as a Director of Pike Corporation, Inc. Mr. Silber is a Graduate of Rutgers College, The State University of New Jersey.

CEO Compensation
  • Larry's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Larry's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Herc Holdings management team in years:

2.9
Average Tenure
54
Average Age
  • The tenure for the Herc Holdings management team is about average.
Management Team

Larry Silber

TITLE
President
COMPENSATION
$5M
AGE
61
TENURE
4 yrs

Mark Irion

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
52
TENURE
0.9 yrs

James Dressel

TITLE
Senior VP & COO
COMPENSATION
$2M
AGE
54
TENURE
2.9 yrs

W. Humphrey

TITLE
VP, Controller & Chief Accounting Officer
COMPENSATION
$896K
AGE
46
TENURE
2.1 yrs

Tamir Peres

TITLE
Senior VP & Chief Information Officer
COMPENSATION
$1M
AGE
48
TENURE
1.7 yrs

Maryann Waryjas

TITLE
Senior VP
COMPENSATION
$2M
AGE
66
TENURE
2.9 yrs

Chris Cunningham

TITLE
Senior VP & Chief Human Resources Officer
COMPENSATION
$1M
AGE
56
TENURE
2.9 yrs

Mustally Hussain

TITLE
VP & Corporate Treasurer
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Herc Holdings board of directors in years:

2.9
Average Tenure
61
Average Age
  • The average tenure for the Herc Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Herb Henkel

TITLE
Non-Executive Chairman
COMPENSATION
$318K
AGE
69
TENURE
2.9 yrs

Larry Silber

TITLE
President
COMPENSATION
$5M
AGE
61
TENURE
3.3 yrs

Patrick Campbell

TITLE
Independent Director
COMPENSATION
$190K
AGE
65
TENURE
2.9 yrs

Mary Salomone

TITLE
Independent Director
COMPENSATION
$190K
AGE
58
TENURE
2.9 yrs

Jim Browning

TITLE
Independent Director
COMPENSATION
$257K
AGE
68
TENURE
2.9 yrs

Mike Kelly

TITLE
Independent Director
COMPENSATION
$183K
AGE
61
TENURE
2.9 yrs

Courtney Mather

TITLE
Independent Director
COMPENSATION
$175K
AGE
41
TENURE
2.9 yrs

Louis Pastor

TITLE
Independent Director
COMPENSATION
$183K
AGE
33
TENURE
2.9 yrs

Jean Holley

TITLE
Director
COMPENSATION
$185K
AGE
59
TENURE
1.8 yrs

Jack Katz

TITLE
Director
COMPENSATION
$185K
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Herc Holdings insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Mar 19 Buy Mary Salomone Individual 06. Mar 19 06. Mar 19 300 $42.00 $12,600
31. Jan 19 Buy Gabelli Foundation Inc, Endowment Arm Company 10. Dec 18 31. Dec 18 4,000 $30.25 $116,000
31. Jan 19 Sell Gabelli & Company Investment Advisers, Inc. Company 26. Dec 18 26. Dec 18 -20,000 $25.85 $-516,916
31. Jan 19 Buy Gabelli & Company Investment Advisers, Inc. Company 04. Dec 18 24. Jan 19 225 $34.97 $7,641
31. Jan 19 Sell GAMCO Investors, Inc. Company 30. Nov 18 29. Jan 19 -141,993 $36.71 $0
31. Jan 19 Buy GAMCO Investors, Inc. Company 30. Nov 18 30. Jan 19 504,438 $36.90 $0
31. Jan 19 Sell Mario Gabelli Individual 28. Jan 19 28. Jan 19 -1,000 $35.97 $-35,971
31. Jan 19 Buy Mario Gabelli Individual 26. Dec 18 26. Dec 18 1,000 $25.38 $25,381
28. Nov 18 Buy Herbert Henkel Individual 27. Nov 18 27. Nov 18 10,000 $34.68 $346,800
07. Nov 18 Buy Associated Capital Group Inc, Asset Management Arm Company 18. Oct 18 18. Oct 18 30 $38.23 $1,147
07. Nov 18 Buy Gabelli & Company Investment Advisers, Inc. Company 11. Oct 18 25. Oct 18 600 $42.45 $24,504
07. Nov 18 Sell GAMCO Investors, Inc. Company 16. Oct 18 06. Nov 18 -20,584 $40.00 $0
07. Nov 18 Buy GAMCO Investors, Inc. Company 11. Oct 18 06. Nov 18 298,790 $42.19 $3,096,174
11. Oct 18 Buy Associated Capital Group Inc, Asset Management Arm Company 10. Oct 18 10. Oct 18 25 $42.95 $1,074
11. Oct 18 Buy Gabelli Foundation Inc, Endowment Arm Company 13. Aug 18 13. Aug 18 800 $51.90 $41,516
11. Oct 18 Buy Gabelli & Company Investment Advisers, Inc. Company 22. Aug 18 22. Aug 18 5,000 $53.11 $265,545
11. Oct 18 Sell GAMCO Investors, Inc. Company 15. Aug 18 10. Oct 18 -56,588 $53.05 $0
11. Oct 18 Buy GAMCO Investors, Inc. Company 13. Aug 18 10. Oct 18 220,503 $53.23 $2,184,454
X
Management checks
We assess Herc Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Herc Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HRI News

Simply Wall St News

Is Herc Holdings Inc.'s (NYSE:HRI) Growth Strong Enough To Justify Its May Share Price?

Looking at Herc Holdings Inc.’s (NYSE:HRI) fundamentals some investors are wondering if its last closing price of $41.33 represents a good value for money for this high growth stock. … Herc Holdings is poised for significantly high earnings growth in the near future. … Herc Holdings is available at a price-to-earnings ratio of 16.22x, showing us it is undervalued relative to the current US market average of 17.89x , and overvalued based on current earnings compared to the Trade Distributors industry average of 16.1x.

Simply Wall St -

What Do Analysts Think About Herc Holdings Inc.'s (NYSE:HRI) Future?

In December 2018, Herc Holdings Inc. … with profits predicted to increase by 47% next year … the past 5-year average growth rate of 11%

Simply Wall St -

Should You Take Comfort From Insider Transactions At Herc Holdings Inc. (NYSE:HRI)?

So we'll take a look at whether insiders have been buying or selling shares in Herc Holdings Inc. … The Last 12 Months Of Insider Transactions At Herc Holdings. … Overall, Herc Holdings insiders were net buyers last year

Simply Wall St -

How Do Herc Holdings Inc.’s (NYSE:HRI) Returns Compare To Its Industry?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Don't Sell Herc Holdings Inc. (NYSE:HRI) Before You Read This

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Herc Holdings has a P/E ratio of 18.49, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Herc Holdings Inc. (NYSE:HRI) Delivered A Better ROE Than Its Industry

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Herc Holdings has a return on equity of 45% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Did Herc Holdings Inc (NYSE:HRI) Insiders Buy Up More Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So before you buy or sell Herc Holdings Inc (NYSE:HRI), you may well want to know whether insiders have been buying or selling. … Herc Holdings Insider Transactions Over The Last Year.

Simply Wall St -

Is Herc Holdings Inc (NYSE:HRI) A High Quality Stock To Own?

Our data shows Herc Holdings has a return on equity of 44% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.44 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Herc Holdings Inc (NYSE:HRI): What Are Investors Earning On Their Capital?

and want to begin learning the link between Herc Holdings Inc (NYSE:HRI)’s return fundamentals and stock market performance. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Therefore, looking at how efficiently Herc Holdings is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Does Herc Holdings Inc's (NYSE:HRI) PE Ratio Signal A Selling Opportunity?

which is -168.32274500208698 lower than 14.12x average multiple of the Trade Distributors? … But can investors make a closing judgement of the company’s value based on this low multiple. … Below, I will lay out some important considerations to help determine which multiple best suits

Simply Wall St -

HRI Company Info

Description

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.

Details
Name: Herc Holdings Inc.
HRI
Exchange: NYSE
Founded: 1965
$1,057,146,769
28,656,730
Website: http://ir.hercrentals.com
Address: Herc Holdings Inc.
27500 Riverview Center Boulevard,
Suite 100,
Bonita Springs,
Florida, 34134,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HRI Common Stock New York Stock Exchange US USD 01. Jul 2016
DB H9B1 Common Stock Deutsche Boerse AG DE EUR 01. Jul 2016
LSE 0J4L Common Stock London Stock Exchange GB USD 01. Jul 2016
BMV HRI * Common Stock Bolsa Mexicana de Valores MX MXN 01. Jul 2016
Number of employees
Current staff
Staff numbers
4,900
Herc Holdings employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/27 00:04
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/23
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.