(HRI) Herc Holdings - NYSE
Sector: Industrials | Industry: Rental & Leasing Services | Exchange: NYSE (USA) | Market Cap: 4.872m USD | Total Return: 19% in 12m
Avg Turnover: 81.9M
EPS Trend: -75.8%
Qual. Beats: -1
Rev. Trend: 95.8%
Qual. Beats: 1
Warnings
Share dilution 16.8% YoY
High Debt/EBITDA (10.3) with thin interest coverage (1.2)
Altman Z'' 0.80 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Herc Holdings Inc. (NYSE: HRI) is an equipment rental supplier operating in the United States and internationally. Founded in 1965 and headquartered in Bonita Springs, Florida, the company rents a broad range of equipment, including aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. The equipment rental industry is generally tied to non-residential construction, industrial activity, and infrastructure spending, which tend to be cyclical.
In addition to core rentals, Herc offers ProSolutions, a suite of specialty solutions spanning power generation, climate control, remediation and restoration, pumping, trench shoring, and studio and production equipment, alongside ProContractor professional-grade tools. The company also provides repair, maintenance, equipment management, safety training, re-rental, and on-site support, plus ancillary services such as equipment transport, rental protection, cleaning, refueling, and labor. It also sells used equipment and contractor supplies.
Hercs customer base spans non-residential and residential construction, specialty trades, restoration, remediation, environmental services, and facility maintenance contractors, as well as industrial sectors (refineries and petrochemical, automotive and aerospace, power, metals and mining, agriculture, pulp/paper/wood, food and beverage), infrastructure and government, and commercial end markets such as warehousing, education, healthcare, data centers, hospitality, retail, and special events. Distribution is handled through an internal sales team, industry catalogs, and participation in trade shows and online channels. HRI is classified under the Industrials sector (Trading Companies & Distributors) and trades as a mid-cap stock, having IPOd in July 2016.
- Non-residential construction demand lifts fleet utilization rates
- Used equipment sales boost gross margins amid tight supply
- H&E integration drives scale and pricing synergies
| Net Income: -5.00m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 1.91 > 1.0 |
| NWC/Revenue: 6.25% < 20% (prev 6.48%; Δ -0.23% < -1%) |
| CFO/TA 0.09 > 3% & CFO 1.23b > Net Income -5.00m |
| Net Debt (11.3b) to EBITDA (1.09b): 10.28 < 3 |
| Current Ratio: 1.46 > 1.5 & < 3 |
| Outstanding Shares: last quarter (33.3m) vs 12m ago 16.84% < -2% |
| Gross Margin: 29.22% > 18% (prev 37.05%; Δ -7.83% > 0.5%) |
| Asset Turnover: 43.76% > 50% (prev 47.05%; Δ -3.28% > 0%) |
| Interest Coverage Ratio: 1.22 > 6 (EBIT TTM 588.0m / Interest Expense TTM 482.0m) |
| A: 0.02 (Total Current Assets 919.0m - Total Current Liabilities 628.0m) / Total Assets 13.6b |
| B: 0.04 (Retained Earnings 500.0m / Total Assets 13.6b) |
| C: 0.06 (EBIT TTM 588.0m / Avg Total Assets 10.6b) |
| D: 0.16 (Book Value of Equity 1.90b / Total Liabilities 11.7b) |
| Altman-Z'' = 0.80 = B |
| DSRI: 1.07 (Receivables 760.0m/554.0m, Revenue 4.65b/3.62b) |
| GMI: 1.27 (GM 37.05% / 29.22%) |
| AQI: 2.33 (AQ_t 0.45 / AQ_t-1 0.19) |
| SGI: 1.28 (Revenue 4.65b / 3.62b) |
| TATA: -0.09 (NI -5.00m - CFO 1.23b) / TA 13.6b) |
| Beneish M = -1.75 (Cap -4..+1) = CCC |
As of June 27, 2026, the stock is trading at USD 151.26 with a total of 483,448 shares traded. Over the past week, the price has changed by -2.49%, over one month by +12.01%, over three months by +45.03% and over the past year by +18.95%.
Current recommended Stop Loss: 135.60 (which is 10.4% or 1.8 ATR below the current price).
Herc Holdings has received a consensus analysts rating of 3.90. Therefore, it is recommended to buy HRI.
- StrongBuy: 4
- Buy: 2
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 170.1 | 12.4% |
P/E Forward = 17.4216
P/S = 1.0469
P/B = 2.521
P/EG = 0.063
Revenue TTM = 4.65b USD
EBIT TTM = 588.0m USD
EBITDA TTM = 1.09b USD
Long Term Debt = 7.96b USD (from longTermDebt, last quarter)
Short Term Debt = 89.0m USD (from shortTermDebt, last quarter)
Debt = 11.3b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.66b
Net Debt = 11.3b USD (calculated: Debt 11.3b - CCE 43.0m)
Enterprise Value = 16.1b USD (4.87b + Debt 11.3b - CCE 43.0m)
Interest Coverage Ratio = 1.22 (Ebit TTM 588.0m / Interest Expense TTM 482.0m)
EV/FCF = 107.5x (Enterprise Value 16.1b / FCF TTM 150.0m)
FCF Yield = 0.93% (FCF TTM 150.0m / Enterprise Value 16.1b)
FCF Margin = 3.22% (FCF TTM 150.0m / Revenue TTM 4.65b)
Net Margin = -0.11% (Net Income TTM -5.00m / Revenue TTM 4.65b)
Gross Margin = 29.22% ((Revenue TTM 4.65b - Cost of Revenue TTM 3.29b) / Revenue TTM)
Gross Margin QoQ = 28.62% (prev 27.05%)
Tobins Q-Ratio = 1.19 (Enterprise Value 16.1b / Total Assets 13.6b)
Interest Expense / Debt = 4.27% (Interest Expense 482.0m / Debt 11.3b)
Taxrate = 0.0% (0.0 / 1.00m)
NOPAT = 588.0m (EBIT 588.0m * (1 - 0.00%))
Current Ratio = 1.46 (Total Current Assets 919.0m / Total Current Liabilities 628.0m)
Debt / Equity = 5.95 (Debt 11.3b / totalStockholderEquity, last quarter 1.90b)
Debt / EBITDA = 10.28 (Net Debt 11.3b / EBITDA 1.09b)
Debt / FCF = 75.05 (Net Debt 11.3b / FCF TTM 150.0m)
Total Stockholder Equity = 1.92b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.05% (Net Income -5.00m / Total Assets 13.6b)
RoE = -0.26% (Net Income TTM -5.00m / Total Stockholder Equity 1.92b)
RoCE = 5.95% (EBIT 588.0m / Capital Employed (Equity 1.92b + L.T.Debt 7.96b))
RoIC = 4.53% (NOPAT 588.0m / Invested Capital 13.0b)
WACC = 6.99% (E(4.87b)/V(16.2b) * Re(13.32%) + D(11.3b)/V(16.2b) * Rd(4.27%) * (1-Tc(0.0)))
Discount Rate = 13.32% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 85.78 | Cagr: 7.33%
[DCF] Terminal Value 75.44% ; FCFF base≈150.0m ; Y1≈150.6m ; Y5≈159.6m
[DCF] Fair Price = N/A (negative equity: EV 2.48b - Net Debt 11.3b = -8.78b; debt exceeds intrinsic value)
EPS Correlation: -75.80 | EPS CAGR: -20.07% | SUE: -1.66 | # QB: -1
Revenue Correlation: 95.84 | Revenue CAGR: 14.54% | SUE: 3.61 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.65 | Chg30d=-12.26% | Revisions=-40% | Analysts=9
EPS next Quarter (2026-09-30): EPS=2.72 | Chg30d=-9.22% | Revisions=-40% | Analysts=9
EPS current Year (2026-12-31): EPS=6.13 | Chg30d=+1.89% | Revisions=N/A | GrowthEPS=-19.4% | GrowthRev=+9.5%
EPS next Year (2027-12-31): EPS=9.92 | Chg30d=+1.53% | Revisions=+20% | GrowthEPS=+61.7% | GrowthRev=+6.3%
[Analyst] Revisions Ratio: -40%