HRI

Herc Holdings Inc.

Fundamental data last updated:October 19, 2026

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company profile

SECTOR

Industrials

industry

Rental & Leasing Services

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Herc Holdings Inc., through its subsidiaries, operates as an equipment rental supplier in the United States and internationally. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. The company also provides ProSolutions, an industry specific solution-based services, which include power generation, climate control, remediation and restoration, pump, trench shoring, and studio and production equipment; and ProContractor professional grade tools. In addition, it offers various services, including repair, maintenance, equipment management, and safety training; and equipment re-rental and on-site support services, as well as ancillary services, such as equipment transport, rental protection, cleaning, refueling, and labor. Further, the company sells used equipment and contractor supplies, such as construction consumables, tools, small equipment, and safety supplies. It serves non-residential and residential construction, specialty trade, restoration, remediation and environment, and facility maintenance contractors; industrial manufacturing industries, including automotive and aerospace, power, metals and mining, agriculture, pulp, paper and wood, food and beverage, and refineries and petrochemical industries; infrastructure and government sectors; and commercial facilities, hospitality, healthcare, recreation, entertainment production, and special event management customers. The company sells its products through its sales team and industry catalogs, as well as through participation and sponsorship of industry events, trade shows, and Internet. Herc Holdings Inc. was founded in 1965 and is based in Bonita Springs, Florida.

 


VALUATION

P/E

-913.62

Market Cap ($M USD)

$4.58B

Forward P/E

8.79

PEG

0.00

PRICE TO SALES

0.98

PRICE TO BOOK

2.41

EV / EBITDA

12.68

5-Year Average P/E

Free Cash Flow Yield

3.27%

DCF Value

$421.49

Graham Number

N/A

Price to FCF

30.54

EV to FCF

94.54

Earnings Yield

-0.11%

FCF Yield

3.27%

DIVIDEND

Yield

2.04%

Annual Payout

$2.80

Payout Ratio

-1800.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.15

Next Year EPS Growth Estimate

$15.61

Next Year Revenue Growth Estimate

$5.58B

Return on Equity (ROE)

-0.26%

FREE CASH FLOW

Operating Margin

16.39%

Debt-to-Equity

5.73

Piotroski F-Score

2

Altman Z-Score

0.79

Return on Invested Capital (ROIC)

5.90%

Current Ratio

1.46

Quick Ratio

1.46

Net Debt to EBITDA

8.59

Interest Coverage

1.58

Gross Profit margin

29.22%

FCF PER SHARE

$4.50

REVENUE PER SHARE

$139.76

Gainseekers Quantitative Analysis

Summary

The market seems to be overlooking Herc Holdings Inc.’s potential, given its DCF value significantly surpasses the recent pricing. Despite a negative earnings yield, the forward P/E suggests optimism for future profitability. However, the Altman Z-score indicates financial distress, raising concerns about its long-term viability. The company’s valuation metrics, such as Price/Sales and Price/Book, suggest it’s trading at a discount, yet the negative ROE and high debt levels paint a risky picture. Investors should weigh these factors carefully, as the stock’s current valuation might not fully reflect its underlying risks and opportunities.

AI Exposure / Tech Reliance

Operating in the rental and leasing services industry, Herc Holdings is poised to leverage AI and tech advancements to optimize asset utilization and enhance customer service. The sector's shift towards digital platforms could improve operational efficiency and data-driven decision-making. However, the company's ability to integrate these technologies will be crucial for maintaining competitiveness.

The Bull Case

For the value-driven investor, Herc Holdings presents an intriguing opportunity. The company's ROIC of 5.90% indicates efficient capital use, while a forward PEG ratio well below 1.0 suggests undervaluation relative to growth. Despite a low Piotroski F-Score, the operating margin of 16.39% highlights robust pricing power. The FCF yield, though modest, underscores potential for cash flow generation, making it attractive for those seeking growth at a reasonable price.

The Bear Case

Herc Holdings faces significant structural risks, with a staggering Debt/Equity ratio of 5.73, indicating heavy reliance on leverage. The Altman Z-score below 1 signals potential financial distress, and the negative EPS reflects current profitability challenges. Trading near its 52-week high, the stock appears technically overextended, raising caution for momentum investors. Additionally, the EV to FCF ratio suggests the company is expensive relative to its cash flow generation, posing a risk for value investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$183.40

Institutional Ownership %

1-Year Beta

1.91

Insider Buying % (6 Mo)

Distance to 52-Week High

37.30%

Distance to 52-Week Low

35.52%

EARNINGS SURPRISE %

120.59%

50-DAY SMA

$117.22

200-DAY SMA

$133.77

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.