Herc Holdings Inc

Industrials
Misc Corporate Leasing Services
www.hercrentals.com

Earnings Score
Moat Score
Safety Score

Market Cap $6.54B
PE 19
Debt $4.19B
Cash $142.00M
EV $10.59B
FCF $1.02B

Earnings

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Sales & Net Margins

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Earnings	$348.00M
EBIT	$457.00M
ROE	24%
ROA	6%
FCF	$1.02B
Equity	$1.48B
Growth Stability	68%
PE	18.78
PEG	0.31
PB	4.42
P/FCF	6.41
P/S	1.89
Price/Cash	0.02
Debt/Equity	2.84
Debt/FCF	4.11
Net Margins	10%
Op. Margins	13%
Earnings CAGR	16%
Sales Growth YoY	6%
Sales Growth QoQ	14%
Sales CAGR	-2%
FCF CAGR	3%
Equity CAGR	2%
Earnings Stability	0.31
Earnings Growth YoY	8%
Earnings Growth QoQ	74%
Earnings CAGR 5Y	61%

Sales CAGR 5Y	17%
FCF CAGR 5Y	15%
Equity CAGR 5Y	20%
Earnings CAGR 3Y	21%
Sales CAGR 3Y	21%
FCF CAGR 3Y	16%
Equity CAGR 3Y	15%
Market Cap	$6.54B
Revenue	$3.45B
Dividend Yield	1%
Payout Ratio	22%
Assets	$8.17B
Total Debt	$4.19B
Cash	$142.00M
Shares Outstanding	28.4M
EV	10.59B
Earnings Score	19%
Moat Score	85%
Safety Score	75%
Final Score	60%
Working Capital	154M
Current Ratio	1.22
Shares Growth 3y	-2%
Equity Growth QoQ	8%
Equity Growth YoY	23%

Assets & ROA

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Stockholders Equity & ROE

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Herc Holdings is an equipment rental company that was spun out of Hertz Global in 2016. It is currently the third-largest equipment rental company (3% market share) in North America, after United Rentals and Sunbelt Rentals, with a fleet size of $5.1 billion. It serves commercial and residential construction customers, the environmental sector, industrial entities, and entertainment production companies. During much of its 50-year-plus history, the company has rented equipment such as aerial lifts to its customers for intermittent use. More recently, it has broadened its catalog to include a host of specialty items. Separately, Herc Holdings' strategy now incorporates long-term rentals to industrial customers where Herc maintains its own staff at the customer site.

SEC Filings

Direct access to Herc Holdings Inc (HRI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Herc Holdings Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Herc Holdings Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 16%

Stability 31%

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Herc Holdings Inc Discounted Cash Flow

Fully customizable DCF calculator online for Herc Holdings Inc.

Years

Calculation mode

= $12B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1B	$1B	$1.1B	$1.1B	$1.1B	$1.2B	$1.2B	$1.2B	$1.2B	$1.3B	$1.3B	$13B
DCF		$951M	$886M	$826M	$770M	$718M	$670M	$624M	$582M	$543M	$506M	$5.1B
Value	$12B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-1%	1%	-1%	9%	3%	2%	4%	11%	12%	11%	10%
ROA	-	1%	-0%	-2%	6%	6%	5%	6%	7%	6%	6%
ROE	-	4%	-6%	31%	12%	7%	10%	23%	30%	27%	24%

Net Margins (9.82%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	1.3	5.79	8.24	4.56	3.66	2.96	2.8	3.63	3.98	4.11
Debt over Equity	1.53	1.44	7.02	4.31	3.84	3.29	2.27	1.99	2.66	2.91	2.84
Growth Stability	-	-	-	100%	82%	68%	80%	100%	100%	100%	68%

Bad Debt/FCF ratio (4.11)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (2.84)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (68%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-5%	-85%	13%	13%	1%	-11%	16%	32%	20%	17%
Earnings YoY growth	-	-236%	-118%	-914%	-57%	-31%	55%	204%	47%	5%	61%
Equity YoY growth	-	6%	-88%	61%	12%	13%	15%	32%	13%	15%	20%
FCF YoY growth	-	-2%	-87%	-31%	80%	20%	-2%	22%	17%	14%	15%