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Herc Holdings Inc HRI

Morningstar Rating
$128.74 +2.31 (1.83%)
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Company Report

Price vs Fair Value

HRI is trading at a 285% premium.
Price
$128.74
Fair Value
$991.00
Uncertainty
High
1-Star Price
$488.50
5-Star Price
$41.40
Economic Moat
Wmnts
Capital Allocation
Lnhtjnm

Bulls Say, Bears Say

Bulls

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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News

Trading Information

Previous Close Price
$126.43
Day Range
$127.52129.03
52-Week Range
$100.17171.00
Bid/Ask
$123.59 / $135.70
Market Cap
$3.65 Bil
Volume/Avg
209,402 / 237,540

Key Statistics

Price/Earnings (Normalized)
13.23
Price/Sales
1.09
Dividend Yield (Trailing)
2.02%
Dividend Yield (Forward)
2.07%
Total Yield
4.10%

Company Profile

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.
Sector
Industrials
Industry
Rental & Leasing Services
Stock Style Box
Small Core
Total Number of Employees
7,200

Competitors

Valuation

Metric
HRI
HD
URI
Price/Earnings (Normalized)
13.2321.8015.17
Price/Book Value
2.79185.105.24
Price/Sales
1.092.232.99
Price/Cash Flow
3.0418.019.51
Price/Earnings
HRI
HD
URI

Financial Strength

Metric
HRI
HD
URI
Quick Ratio
1.310.340.79
Current Ratio
1.511.340.89
Interest Coverage
2.9110.866.13
Quick Ratio
HRI
HD
URI

Profitability

Metric
HRI
HD
URI
Return on Assets (Normalized)
5.13%19.73%7.81%
Return on Equity (Normalized)
29.32%1,265.26%25.96%
Return on Invested Capital (Normalized)
9.55%32.05%12.11%
Return on Assets
HRI
HD
URI
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1-Day Chart
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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ELEEF
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