Herc Holdings (HRI) AI Stock Analysis

• Market Cap: $4.24B
• Dividend Yield: 2.16%
• Average Volume (3M): 419.39K
• Price to Earnings (P/E): 153.4
• Beta (1Y): 1.75
• Revenue Growth: 11.41%
• EPS Growth: -92.67%
• Country: US
• Employees: 7,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 1.87
• Shares Outstanding: 33,236,565
• 10 Day Avg. Volume: 437,579
• 30 Day Avg. Volume: 419,395
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.25
• Enterprise Value/Revenue: 3.84
• Enterprise Value/Gross Profit: 12.20
• Enterprise Value/Ebitda: 11.35
• 1Y Price Target: $132.67
• Price Target Upside: 3.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 56 Neutral
• Price Target: $132.00 ▲(2.92% Upside)

Herc Holdings' overall stock score is primarily influenced by mixed financial performance and high valuation concerns. While the earnings call provided a positive outlook with strong revenue growth and successful acquisition integration, the high P/E ratio and cash flow challenges weigh heavily on the score. Technical analysis suggests some bullish momentum, but the stock remains below key moving averages.

Positive Factors

Revenue Growth

Strong revenue growth in equipment rentals indicates robust demand and effective market penetration, supporting long-term business expansion.

Acquisition Integration

The successful integration of H&E Equipment Services enhances operational scale and synergies, potentially driving cost efficiencies and revenue growth.

Fleet Management Optimization

Optimized fleet management improves asset utilization and capital efficiency, contributing to better financial performance and competitive positioning.

Negative Factors

Profitability Margins

Declining profitability margins suggest pressure on cost management, which could impact long-term profitability and shareholder returns.

Cash Flow Challenges

Challenges in cash flow management may limit financial flexibility and investment capacity, affecting long-term growth prospects.

High Leverage

High leverage increases financial risk and interest expenses, potentially constraining future investment and growth opportunities.

Herc Holdings Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Herc Holdings generates revenue primarily through the rental of equipment to customers across multiple sectors. The company operates on a rental model where customers pay for the use of equipment on a short-term or long-term basis, which constitutes a significant portion of its revenue. Key revenue streams include daily, weekly, and monthly rental fees, as well as sales of used equipment. Furthermore, Herc Holdings earns additional income through the sale of ancillary services such as maintenance, repair, and transportation of rental equipment. Strategic partnerships with construction firms, contractors, and industrial companies also bolster its earnings, providing a steady stream of clients who require reliable equipment solutions for their projects.

Herc Holdings Financial Statement Overview

Summary

Herc Holdings shows steady revenue growth but faces challenges with declining profit margins and cash flow management. Improved debt-to-equity ratio indicates reduced leverage, but lower return on equity and significant declines in free cash flow highlight financial stability concerns.

Income Statement

Herc Holdings shows a steady revenue growth rate of 4.49% TTM, indicating a positive trajectory. However, the gross profit margin has decreased over time, currently at 31.52% TTM, which suggests pressure on cost management. The net profit margin is low at 0.64% TTM, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins have also declined, indicating reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.80 TTM, showing a significant reduction in leverage compared to previous years. However, the return on equity has decreased to 1.50% TTM, indicating lower profitability for shareholders. The equity ratio stands at 13.63% TTM, suggesting a moderate level of financial stability.

Cash Flow

Herc Holdings faces challenges in cash flow management, with a significant decline in free cash flow growth rate of -95.16% TTM. The operating cash flow to net income ratio is 0.82 TTM, indicating adequate cash generation relative to net income. However, the negative free cash flow to net income ratio highlights potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.58B	3.37B	3.28B	2.74B	2.07B	1.78B
Gross Profit	1.13B	1.16B	1.22B	1.06B	756.00M	526.60M
EBITDA	1.21B	1.36B	1.43B	1.19B	865.00M	653.10M
Net Income	23.00M	211.00M	347.00M	330.00M	224.00M	73.70M
Balance Sheet
Total Assets	14.02B	7.88B	7.06B	5.96B	4.49B	3.59B
Cash, Cash Equivalents and Short-Term Investments	53.00M	83.00M	71.00M	53.50M	35.10M	33.00M
Total Debt	1.54B	5.07B	4.48B	3.62B	2.47B	2.05B
Total Liabilities	12.11B	6.48B	5.79B	4.85B	3.51B	2.85B
Stockholders Equity	1.91B	1.40B	1.27B	1.11B	976.90M	742.00M
Cash Flow
Free Cash Flow	-3.00M	16.00M	-390.00M	-355.50M	102.20M	225.40M
Operating Cash Flow	667.00M	1.23B	1.09B	916.70M	744.00M	610.90M
Investing Cash Flow	-5.37B	-1.51B	-1.58B	-1.68B	-961.30M	-207.50M
Financing Cash Flow	4.28B	299.00M	512.00M	784.10M	219.60M	-406.00M

Herc Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 128.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRI, the sentiment is Negative. The current price of 128.26 is below the 20-day moving average (MA) of 130.37, below the 50-day MA of 128.43, and below the 200-day MA of 146.37, indicating a bearish trend. The MACD of 0.85 indicates Positive momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 31.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRI.

Herc Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGRC	81 Outperform	3.00B	11.88	21.70%	1.56%	8.78%	117.40%
URI	79 Outperform	59.90B	24.08	28.08%	0.74%	6.77%	2.01%
R	78 Outperform	7.53B	15.76	16.46%	1.80%	3.68%	6.61%
WSC	66 Neutral	4.12B	37.78	10.61%	0.93%	-2.34%	-37.24%
HRI	56 Neutral	$4.24B	153.38	1.41%	2.16%	11.41%	-92.67%
CAR	44 Neutral	5.39B	-2.47	80.95%	―	-2.25%	-395.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Herc Holdings Corporate Events

Herc Holdings Enhances Borrowing with Sixth Amendment

On August 29, 2025, Herc Rentals Inc. and its subsidiaries entered into a Sixth Amendment to their receivables financing agreement, which enhances borrowing availability and extends the maturity date to August 31, 2026. This amendment is part of their ongoing strategy to optimize financial operations and maintain flexibility in funding, potentially strengthening their market position and benefiting stakeholders.

The most recent analyst rating on (HRI) stock is a Hold with a $130.00 price target. To see the full list of analyst forecasts on Herc Holdings stock, see the HRI Stock Forecast page.

Herc Holdings Sells Cinelease Business to Zello

On July 31, 2025, Herc Holdings Inc. completed the sale of its Cinelease studio entertainment and lighting and grip equipment rental business to Zello, a private investment platform, for an initial cash consideration of $100 million. The proceeds from this sale will be used by Herc to repay indebtedness incurred under its credit facility, potentially improving its financial position.

The most recent analyst rating on (HRI) stock is a Hold with a $200.00 price target. To see the full list of analyst forecasts on Herc Holdings stock, see the HRI Stock Forecast page.