Herc Holdings Inc. Fundamental Analysis (NYSE: HRI)
Herc Holdings Inc. (NYSE: HRI) shows weak financial fundamentals with a PE ratio of 117.63, profit margin of 1.01%, and ROE of 2.56%. The company generates $4.9B in annual revenue with strong year-over-year growth of 22.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HRI's fundamental strength across five key dimensions:
Efficiency Score
WeakHRI struggles to generate sufficient returns from assets.
Valuation Score
ModerateHRI shows balanced valuation metrics.
Growth Score
ModerateHRI shows steady but slowing expansion.
Financial Health Score
ModerateHRI shows balanced financial health with some risks.
Profitability Score
ModerateHRI maintains healthy but balanced margins.
Key Financial Metrics
Is HRI Expensive or Cheap?
P/E Ratio
HRI trades at 117.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HRI's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Herc Holdings Inc. at 3.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -3.27 times EBITDA. This is generally considered low.
How Well Does HRI Make Money?
Net Profit Margin
For every $100 in sales, Herc Holdings Inc. keeps $1.01 as profit after all expenses.
Operating Margin
Core operations generate 14.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.56 in profit for every $100 of shareholder equity.
ROA
Herc Holdings Inc. generates $0.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Herc Holdings Inc. produces operating cash flow of $846.80M, showing steady but balanced cash generation.
Free Cash Flow
Herc Holdings Inc. generates weak or negative free cash flow of $93.09M, restricting financial flexibility.
FCF Per Share
Each share generates $2.78 in free cash annually.
FCF Yield
HRI converts 1.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
117.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.008
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How HRI Stacks Against Its Sector Peers
| Metric | HRI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 117.63 | 30.97 | Worse (Expensive) |
| ROE | 2.56% | 1108.00% | Weak |
| Net Margin | 1.01% | -21241.00% (disorted) | Weak |
| Debt/Equity | 5.01 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.10 | 21.73 | Neutral |
| ROA | 0.36% | -1325740.00% (disorted) | Weak |
HRI outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Herc Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
128.40%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-98.74%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
70.30%
Industry Style: Cyclical, Value, Infrastructure
High Growth