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Herc Holdings Inc
HRI
Services-Miscellaneous Equipment Rental & Leasing
Mkt Cap
$3.979BPE
11.53Debt
$3.783BCash
$63MEV
$7.699BFCF
$938MP/E Ratio
11.53Debt
$3.783BCash
$63MEV
$7.699BFCF
$938MCharts data: {"Earnings":[{"time":"2014-12-30","value":-82000000},{"time":"2015-12-30","value":111300000},{"time":"2016-12-30","value":-19700000},{"time":"2017-12-30","value":160300000},{"time":"2018-12-30","value":69100000},{"time":"2019-12-30","value":47500000},{"time":"2020-12-30","value":73700000},{"time":"2021-12-30","value":224100000},{"time":"2022-12-30","value":329900000},{"time":"2023-12-30","value":347000000}],"Sales":[{"time":"2014-12-30","value":11046000000},{"time":"2015-12-30","value":10535000000},{"time":"2016-12-30","value":1554800000},{"time":"2017-12-30","value":1754500000},{"time":"2018-12-30","value":1976700000},{"time":"2019-12-30","value":1999000000},{"time":"2020-12-30","value":1781300000},{"time":"2021-12-30","value":2073000000},{"time":"2022-12-30","value":2740000000},{"time":"2023-12-30","value":3282000000}],"Net Margins":[{"time":"2014-12-30","value":-0.007423501720079667},{"time":"2015-12-30","value":0.010564784053156147},{"time":"2016-12-30","value":-0.01267043992796501},{"time":"2017-12-30","value":0.09136506127101739},{"time":"2018-12-30","value":0.03495725198563262},{"time":"2019-12-30","value":0.023761880940470236},{"time":"2020-12-30","value":0.04137427721327121},{"time":"2021-12-30","value":0.10810419681620839},{"time":"2022-12-30","value":0.1204014598540146},{"time":"2023-12-30","value":0.10572821450335161}],"Assets":[{"time":"2014-12-30","value":23985000000},{"time":"2015-12-30","value":23358000000},{"time":"2016-12-30","value":3463300000},{"time":"2017-12-30","value":3549700000},{"time":"2018-12-30","value":3610200000},{"time":"2019-12-30","value":3817000000},{"time":"2020-12-30","value":3588400000},{"time":"2021-12-30","value":4490400000},{"time":"2022-12-30","value":5956800000},{"time":"2023-12-30","value":7061000000}],"Stockholders Equity":[{"time":"2014-12-30","value":2551000000},{"time":"2015-12-30","value":2711000000},{"time":"2016-12-30","value":317700000},{"time":"2017-12-30","value":510400000},{"time":"2018-12-30","value":572700000},{"time":"2019-12-30","value":644300000},{"time":"2020-12-30","value":742000000},{"time":"2021-12-30","value":976900000},{"time":"2022-12-30","value":1108700000},{"time":"2023-12-30","value":1273000000}],"ROE":[{"time":"2014-12-30","value":-0.032144257154057235},{"time":"2015-12-30","value":0.04105496126890446},{"time":"2016-12-30","value":-0.06200818382121498},{"time":"2017-12-30","value":0.31406739811912227},{"time":"2018-12-30","value":0.12065653920027938},{"time":"2019-12-30","value":0.07372342076672357},{"time":"2020-12-30","value":0.09932614555256064},{"time":"2021-12-30","value":0.22939911966424403},{"time":"2022-12-30","value":0.29755569586001623},{"time":"2023-12-30","value":0.27258444619010214}],"ROA":[{"time":"2014-12-30","value":0.006024598707525537},{"time":"2015-12-30","value":0.0067171846904700745},{"time":"2016-12-30","value":-0.0014148355614587243},{"time":"2017-12-30","value":-0.018142378229146126},{"time":"2018-12-30","value":0.05700515206913744},{"time":"2019-12-30","value":0.062116845690332725},{"time":"2020-12-30","value":0.052028759335637054},{"time":"2021-12-30","value":0.06467129877071084},{"time":"2022-12-30","value":0.07275718506580714},{"time":"2023-12-30","value":0.06330548081008355}]}
Herc Holdings Inc., through its subsidiaries, operates as an equipment rental supplier in the United States and internationally. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. The company also offers ProSolutions, an industry specific solution-based services, which include power generation, climate control, remediation and restoration, pump, trench shoring, and studio and production equipment; and ProContractor professional grade tools. In addition, it provides 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 refineries and petrochemical, automotive and aerospace, power, metals and mining, agriculture, pulp, paper and wood, and food and beverage industries; infrastructure and government sectors; and commercial facilities, 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.
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DCF
Discounted Cash Flow Valuation of Herc Holdings Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $938M | $895M | $853.9M | $814.8M | $777.4M | $741.8M | $707.8M | $675.3M | $644.3M | $614.8M | $586.6M | $5.866B |
| DCF | $778.2M | $645.7M | $535.7M | $444.5M | $368.8M | $306M | $253.9M | $210.6M | $174.8M | $145M | $1.45B | |
| Value | $5.313B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 17%
Earnings Stability 12%
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 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 1.1% | -1.3% | 9.1% | 3.5% | 2.4% | 4.1% | 11% | 12% | 11% | 10% |
| ROA | 0.67% | -0.14% | -1.8% | 5.7% | 6.2% | 5.2% | 6.5% | 7.3% | 6.3% | 6.3% |
| ROE | 4.1% | -6.2% | 31% | 12% | 7.4% | 9.9% | 23% | 30% | 27% | 26% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +7.24%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +2.03%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +6.2%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.22%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +18.22%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +4.46%.
Safety & Stabiliy
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 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 1.30 | 5.79 | 8.24 | 4.56 | 3.66 | 2.96 | 2.80 | 3.63 | 3.98 | 4.03 |
| Debt Equity | 1.44 | 7.02 | 4.31 | 3.84 | 3.29 | 2.27 | 1.99 | 2.66 | 2.91 | 2.89 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 82% | 68% | 80% | 100% | 100% | 100% | 68% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 4.03.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.09.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.68.
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 | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 11% | 11% | 23% | 20% | 7.2% |
| Net Income | - | 38% | 68% | 5.2% | 20% |
| Stockholders Equity | 22% | 17% | 20% | 15% | 4.7% |
| FCF | 13% | 14% | 18% | 14% | 6.7% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +10.67%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +7.22%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +38.09%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +19.85%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +17.32%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +4.74%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +14.07%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +6.72%.