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HRI

Herc HoldingsNYSE:HRI Stock Report

Market Cap

US$5.5b

7D

1.1%

1Y

310.3%

Updated

21 Oct, 2021

Data

Company Financials +
HRI fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance5/6
Financial Health3/6
Dividends0/6

HRI Overview

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

Herc Holdings Competitors

Fastenal

NasdaqGS:FAST

US$32.2b

United Rentals

NYSE:URI

US$26.5b

Applied Industrial Technologies

NYSE:AIT

US$3.8b

Triton International

NYSE:TRTN

US$3.8b

Price History & Performance

Summary of all time highs, changes and price drops for Herc Holdings
Historical stock prices
Current Share PriceUS$183.96
52 Week HighUS$41.70
52 Week LowUS$190.55
Beta2.89
1 Month Change38.16%
3 Month Change56.59%
1 Year Change310.35%
3 Year Change457.46%
5 Year Change520.86%
Change since IPO456.61%

Recent News & Updates

Oct 02
Is Herc Holdings Inc. (NYSE:HRI) Worth US$171 Based On Its Intrinsic Value?

Is Herc Holdings Inc. (NYSE:HRI) Worth US$171 Based On Its Intrinsic Value?

How far off is Herc Holdings Inc. ( NYSE:HRI ) from its intrinsic value? Using the most recent financial data, we'll...

Sep 21

Keep An Eye On Herc Holdings

Herc Holdings is flying under the radar as it's a mid-cap equipment rental company. The company has great management and a business model that will allow it to accelerate its expansion over the next few years, supported by higher margins. The valuation is fair, which means I advise investors to use market weakness to initiate a position at attractive prices.

Shareholder Returns

HRIUS Trade DistributorsUS Market
7D1.1%4.4%3.8%
1Y310.3%54.8%31.5%

Return vs Industry: HRI exceeded the US Trade Distributors industry which returned 54.8% over the past year.

Return vs Market: HRI exceeded the US Market which returned 31.5% over the past year.

Price Volatility

Is HRI's price volatile compared to industry and market?
HRI volatility
HRI Beta2.89
Industry Beta1.58
Market Beta1

Stable Share Price: HRI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HRI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19654,800Larry Silberhttps://ir.hercrentals.com

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.

Herc Holdings Fundamentals Summary

How do Herc Holdings's earnings and revenue compare to its market cap?
HRI fundamental statistics
Market CapUS$5.45b
Earnings (TTM)US$155.40m
Revenue (TTM)US$1.92b

35.1x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HRI income statement (TTM)
RevenueUS$1.92b
Cost of RevenueUS$1.36b
Gross ProfitUS$562.80m
ExpensesUS$407.40m
EarningsUS$155.40m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 21, 2021

Earnings per share (EPS)5.24
Gross Margin29.29%
Net Profit Margin8.09%
Debt/Equity Ratio195.1%

How did HRI perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

n/a

Payout Ratio

Valuation

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

35.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HRI ($183.96) is trading above our estimate of fair value ($132.11)

Significantly Below Fair Value: HRI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HRI is poor value based on its PE Ratio (35.1x) compared to the US Trade Distributors industry average (22.9x).

PE vs Market: HRI is poor value based on its PE Ratio (35.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: HRI is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: HRI is overvalued based on its PB Ratio (6.5x) compared to the US Trade Distributors industry average (2.4x).


Future Growth

How is Herc Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

44.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRI's forecast earnings growth (44.6% per year) is above the savings rate (2%).

Earnings vs Market: HRI's earnings (44.6% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: HRI's revenue (10% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: HRI's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HRI's Return on Equity is forecast to be low in 3 years time (17.9%).


Past Performance

How has Herc Holdings performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRI has high quality earnings.

Growing Profit Margin: HRI's current net profit margins (8.1%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: HRI's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: HRI's earnings growth over the past year (263.1%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: HRI earnings growth over the past year (263.1%) exceeded the Trade Distributors industry 49.2%.


Return on Equity

High ROE: HRI's Return on Equity (18.6%) is considered low.


Financial Health

How is Herc Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HRI's short term assets ($379.7M) do not cover its short term liabilities ($392.2M).

Long Term Liabilities: HRI's short term assets ($379.7M) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: HRI's debt to equity ratio (195.1%) is considered high.

Reducing Debt: HRI's debt to equity ratio has reduced from 590.5% to 195.1% over the past 5 years.

Debt Coverage: HRI's debt is well covered by operating cash flow (40.4%).

Interest Coverage: HRI's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Dividend

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

1.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HRI's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: HRI's dividend (1.09%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether HRI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HRI's dividend payments are increasing as they only just started paying a dividend.


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?

4.3yrs

Average management tenure


CEO

Larry Silber (64 yo)

6.42yrs

Tenure

US$4,457,722

Compensation

Mr. Lawrence H. Silber, also known as Larry, serves as a Director of Hayward Holdings, Inc. since November 2019. Mr. Silber has been the Chief Executive Officer and President at Herc Rentals Inc. since May...


CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD4.46M) is about average for companies of similar size in the US market ($USD6.29M).

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


Leadership Team

Experienced Management: HRI's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: HRI's board of directors are considered experienced (4.2 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 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$5.454b
  • Shares outstanding: 29.65m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 23:07
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.