We will discontinue analyst coverage of Herc Holdings on or around July 8. We provide analyst research and ratings on over 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.
Increased equipment rental penetration in North America could result in more general equipment rentals, driving higher sales growth for Herc.
Bears
Rental customers may elect to buy equipment outright instead of renting, which could lead to a decline in the rental penetration rate, ultimately meaning lower sales for Herc.
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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 (4% market share) in North America, after United Rentals and Sunbelt Rentals, with a fleet size of $6.4 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.