Hertz Global Holdings, Inc. Fundamental Analysis (NASDAQ: HTZ)
Hertz Global Holdings, Inc. Fundamental Analysis (NASDAQ: HTZ)
Hertz Global Holdings, Inc. (NASDAQ: HTZ) shows moderate financial fundamentals with a PE ratio of -2.50, profit margin of -3.13%, and ROE of 50.96%. The company generates $8.9B in annual revenue with weak year-over-year growth of -6.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 335.0/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze HTZ's fundamental strength across five key dimensions:
Efficiency Score
WeakHTZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHTZ trades at attractive valuation levels.
Growth Score
ModerateHTZ shows steady but slowing expansion.
Financial Health Score
ExcellentHTZ maintains a strong and stable balance sheet.
Profitability Score
WeakHTZ struggles to sustain strong margins.
Key Financial Metrics
Is HTZ Expensive or Cheap?
P/E Ratio
HTZ trades at -2.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HTZ's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Hertz Global Holdings, Inc. at -1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.72 times EBITDA. This is generally considered low.
How Well Does HTZ Make Money?
Net Profit Margin
For every $100 in sales, Hertz Global Holdings, Inc. keeps $-3.13 as profit after all expenses.
Operating Margin
Core operations generate 2.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $50.96 in profit for every $100 of shareholder equity.
ROA
Hertz Global Holdings, Inc. generates $-1.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hertz Global Holdings, Inc. produces operating cash flow of $1.42B, showing steady but balanced cash generation.
Free Cash Flow
Hertz Global Holdings, Inc. generates weak or negative free cash flow of $-8.43B, restricting financial flexibility.
FCF Per Share
Each share generates $-26.70 in free cash annually.
FCF Yield
HTZ converts -12.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
-1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-33.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.51
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How HTZ Stacks Against Its Sector Peers
| Metric | HTZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.50 | 29.88 | Better (Cheaper) |
| ROE | 50.96% | 1106.00% | Weak |
| Net Margin | -3.13% | -23408.00% (disorted) | Weak |
| Debt/Equity | -33.58 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 1.53 | 21.64 | Neutral |
| ROA | -1.17% | -1320888.00% (disorted) | Weak |
HTZ outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hertz Global Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-21.74%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
78.91%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-17.34%
Industry Style: Cyclical, Value, Infrastructure
Declining