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. More Details


Snowflake Analysis

Solid track record and fair value.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: HRI's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

4.2%

HRI

2.7%

US Trade Distributors

2.8%

US Market


1 Year Return

27.7%

HRI

20.8%

US Trade Distributors

20.9%

US Market

Return vs Industry: HRI exceeded the US Trade Distributors industry which returned 21.1% over the past year.

Return vs Market: HRI exceeded the US Market which returned 20.7% over the past year.


Shareholder returns

HRIIndustryMarket
7 Day4.2%2.7%2.8%
30 Day35.8%22.3%11.1%
90 Day41.6%14.7%6.5%
1 Year27.7%27.7%23.1%20.8%23.6%20.9%
3 Year0.08%0.08%36.9%30.4%47.3%37.6%
5 Yearn/a91.2%77.5%94.3%72.9%

Long-Term 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 ($59.7) is trading below our estimate of fair value ($138.24)

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 (23.6x) compared to the US Trade Distributors industry average (21.9x).

PE vs Market: HRI is poor value based on its PE Ratio (23.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: HRI is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HRI is overvalued based on its PB Ratio (2.5x) compared to the US Trade Distributors industry average (1.8x).


Next Steps

Future Growth

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

35.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRI's forecast earnings growth (35.3% per year) is above the savings rate (2.2%).

Earnings vs Market: HRI's earnings (35.3% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: HRI's revenue (5.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: HRI's revenue (5.5% 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 (15.7%).


Next Steps

Past Performance

How has Herc Holdings performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRI has high quality earnings.

Growing Profit Margin: HRI's current net profit margins (4.1%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: HRI's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: HRI's earnings growth over the past year (60.3%) exceeds its 5-year average (4% per year).

Earnings vs Industry: HRI earnings growth over the past year (60.3%) exceeded the Trade Distributors industry -6.9%.


Return on Equity

High ROE: HRI's Return on Equity (10.7%) 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 ($385.0M) exceed its short term liabilities ($301.7M).

Long Term Liabilities: HRI's short term assets ($385.0M) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: HRI's debt to equity ratio (279.1%) is considered high.

Reducing Debt: HRI's debt to equity ratio has increased from 15% to 279.1% over the past 5 years.

Debt Coverage: HRI's debt is well covered by operating cash flow (32.3%).

Interest Coverage: HRI's interest payments on its debt are not well covered by EBIT (2.2x 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?

3.4yrs

Average management tenure


CEO

Larry Silber (63 yo)

5.5yrs

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 ($USD4.18M) is about average for companies of similar size in the US market ($USD4.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lawrence Silber
President5.5yrsUS$4.18m0.48%
$ 8.3m
Mark Irion
Senior VP & CFO2.42yrsUS$1.56m0.030%
$ 522.7k
Tamir Peres
Senior VP & Chief Information Officer3.17yrsUS$1.16m0.051%
$ 898.6k
Christian Cunningham
Senior VP & Chief Human Resources Officer4.42yrsUS$1.18m0.10%
$ 1.8m
Aaron Birnbaum
Senior VP & COO0.83yrno data0.042%
$ 729.7k
W. Humphrey
VP, Controller & Chief Accounting Officer3.58yrsUS$895.60k0.018%
$ 321.6k
Elizabeth Higashi
Vice President of Investor Relationsno datano datano data
Samuel Sheek
Senior VP1yrno data0.041%
$ 721.8k
Paul Dickard
Vice President of Communicationsno datano datano data
Mustally Hussain
VP & Corporate Treasurer4.83yrsno datano data

3.4yrs

Average Tenure

54yo

Average Age

Experienced Management: HRI's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lawrence Silber
President5.5yrsUS$4.18m0.48%
$ 8.3m
Nicholas Graziano
Independent Director2.5yrsUS$185.06kno data
Jean Holley
Independent Director3.25yrsUS$196.69k0.012%
$ 205.5k
Herbert Henkel
Independent Non-Executive Chairman4.42yrsUS$329.27k0.089%
$ 1.6m
Patrick Campbell
Independent Director4.42yrsUS$201.70k0.023%
$ 407.2k
Jacob Katz
Independent Director3.25yrsUS$196.69k0.013%
$ 223.7k
Michael Kelly
Independent Director4.42yrsUS$194.20k0.032%
$ 561.1k
James Browning
Independent Director4.42yrsUS$206.70k0.024%
$ 421.5k
Mary Salomone
Independent Director4.42yrsUS$201.70k0.0015%
$ 25.8k
Andrew Langham
Independent Director0.50yrno datano data
Jonathan Frates
Independent Director1.25yrsUS$121.28kno data

4.4yrs

Average Tenure

62yo

Average Age

Experienced Board: HRI's board of directors are considered experienced (4.4 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$1.745b
  • Shares outstanding: 29.23m
  • 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 traile...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 00:04
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.