Herc Holdings (HRI) AI Stock Analysis

• Market Cap: $5.20B
• Dividend Yield: 1.78%
• Average Volume (3M): 434.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: 19.40%
• EPS Growth: -120.47%
• Country: US
• Employees: 7,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 2.22
• Shares Outstanding: 33,269,714
• 10 Day Avg. Volume: 511,442
• 30 Day Avg. Volume: 434,684
• PEG Ratio: -0.65
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 336.06
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 10.01
• Enterprise Value/Ebitda: 15.84
• 1Y Price Target: $175.00
• Price Target Upside: 12.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 7.82
• Revenue Forecast (FY): $4.42B

• Rating: 67 Neutral
• Price Target: $152.00 ▼(-2.15% Downside)

Herc Holdings' overall score reflects strong technical indicators and positive strategic moves in debt management, offset by profitability and cash flow challenges. Successful acquisition integration and growth in specialty solutions are significant positives, but valuation concerns and local market challenges remain.

Positive Factors

Revenue Growth

The significant revenue growth in equipment rental indicates robust demand and successful strategic initiatives, enhancing long-term business sustainability.

Successful Acquisition Integration

Rapid integration of acquisitions enhances operational efficiency and scalability, positioning the company for sustained growth and competitive advantage.

Leadership Transition

The leadership transition aligns with the company's succession plan, ensuring continuity in strategic direction and operational management.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder the company's ability to reinvest in growth and maintain competitive positioning in the long term.

Cash Flow Concerns

Negative cash flow can strain financial resources, limiting the company's ability to fund operations and strategic initiatives over time.

Local Market Challenges

Local market challenges, exacerbated by high interest rates, may impede growth and affect the company's ability to capitalize on regional 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 a wide range of customers. The company's core revenue streams include rental income from its extensive fleet of equipment, which is often leased on a short-term or long-term basis. Additionally, Herc earns money from the sale of new and used equipment, parts, and accessories, as well as through maintenance and repair services provided to its customers. By leveraging a network of branch locations, Herc enhances customer proximity and service efficiency, contributing to customer retention and increased rental transactions. Significant partnerships with manufacturers and suppliers also enable the company to maintain a modern and diverse fleet, ensuring it can meet the evolving needs of its customer base. Seasonality in construction and infrastructure projects also plays a role in revenue fluctuations, impacting rental demand during peak periods.

Herc Holdings Financial Statement Overview

Summary

Herc Holdings shows strong revenue growth but struggles with profitability and cash flow management. The improved debt-to-equity ratio is a positive, but negative returns on equity and cash flow issues pose significant risks.

Income Statement

Herc Holdings shows a solid revenue growth rate of 9.46% TTM, indicating a positive trajectory in sales. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -1.76% TTM. The gross profit margin has decreased significantly from previous years, impacting overall profitability. The EBIT and EBITDA margins have also declined, suggesting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.79 TTM, indicating better leverage management compared to previous years. However, the return on equity is negative at -4.19% TTM, reflecting poor profitability and potential risks in generating returns for shareholders. The equity ratio is relatively stable, but the negative ROE is a concern.

Cash Flow

Herc Holdings has experienced a significant increase in free cash flow growth TTM, but the free cash flow remains negative, indicating cash management issues. The operating cash flow to net income ratio is low at 0.41, suggesting challenges in converting income into cash. The free cash flow to net income ratio is also negative, highlighting cash flow concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.12B	3.57B	3.28B	2.74B	2.07B	1.78B
Gross Profit	1.36B	1.35B	1.22B	1.06B	756.00M	526.60M
EBITDA	859.00M	870.00M	775.00M	654.00M	446.00M	269.20M
Net Income	-69.00M	211.00M	347.00M	330.00M	224.00M	73.70M
Balance Sheet
Total Assets	13.93B	7.88B	7.06B	5.96B	4.49B	3.59B
Cash, Cash Equivalents and Short-Term Investments	61.00M	83.00M	71.00M	53.50M	35.10M	33.00M
Total Debt	1.52B	5.07B	4.48B	3.62B	2.47B	2.05B
Total Liabilities	12.00B	6.48B	5.79B	4.85B	3.51B	2.85B
Stockholders Equity	1.93B	1.40B	1.27B	1.11B	976.90M	742.00M
Cash Flow
Free Cash Flow	-186.00M	16.00M	-390.00M	-355.00M	102.00M	225.40M
Operating Cash Flow	1.10B	1.23B	1.09B	917.00M	743.00M	610.90M
Investing Cash Flow	-5.06B	-1.51B	-1.58B	-1.68B	-960.00M	-207.50M
Financing Cash Flow	3.88B	299.00M	512.00M	785.00M	220.00M	-406.00M

Herc Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 155.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRI, the sentiment is Positive. The current price of 155.34 is above the 20-day moving average (MA) of 138.29, above the 50-day MA of 134.03, and above the 200-day MA of 127.09, indicating a bullish trend. The MACD of 5.88 indicates Negative momentum. The RSI at 70.39 is Negative, neither overbought nor oversold. The STOCH value of 87.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRI.

Herc Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URI	73 Outperform	$52.09B	21.06	28.78%	0.87%	6.73%	1.45%
WSC	69 Neutral	$3.53B	16.05	21.15%	1.46%	-3.64%	867.62%
R	68 Neutral	$7.73B	16.25	16.26%	1.80%	1.68%	9.91%
HRI	67 Neutral	$5.20B	-61.71	-4.05%	1.78%	19.40%	-120.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGRC	58 Neutral	$2.65B	18.20	12.70%	1.79%	4.77%	-35.44%
CAR	41 Neutral	$4.67B	-2.18	―	―	-1.22%	-639.34%

Herc Holdings Corporate Events

Herc Holdings Announces $1.2 Billion Notes Pricing

On December 2, 2025, Herc Holdings Inc. announced the pricing of $1.2 billion in senior unsecured notes, divided equally between notes due in 2031 and 2034, with interest rates of 5.750% and 6.000% respectively. The proceeds from this offering, expected to close on December 16, 2025, will be used to redeem the company’s existing $1.2 billion 5.50% senior notes due 2027, indicating a strategic move to manage its debt obligations and potentially improve its financial positioning.

Herc Holdings Announces $1.2 Billion Notes Offering

On December 2, 2025, Herc Holdings Inc. announced a proposed private offering of $1,200 million in senior unsecured notes, intended to redeem the company’s existing 5.50% Senior Notes due 2027. This strategic financial maneuver aims to optimize the company’s debt structure and is expected to impact its financial operations positively. The notes will be sold under Rule 144A and Regulation S of the Securities Act of 1933, and are not registered under the Act, indicating a targeted approach towards qualified institutional buyers.

Herc Holdings Plans Redemption of Senior Notes

On December 1, 2025, Herc Holdings Inc. announced its intention to redeem all $1,200 million of its outstanding 5.50% Senior Notes due 2027. This redemption is contingent upon securing satisfactory financing to cover the redemption price, which is set for December 16, 2025.

Herc Holdings Announces New President Appointment

On November 19, 2025, Herc Holdings Inc. announced that Aaron Birnbaum, who has been the Chief Operating Officer since 2020, will become the company’s President effective January 1, 2026, while retaining his current responsibilities. Larry Silber will continue as the Chief Executive Officer. Birnbaum’s compensation package includes a base salary of $775,000, a target annual incentive cash bonus, and a long-term equity incentive. Additionally, Patrick S. Shannon and John A. Olin were elected as independent directors to the Board, effective January 1, 2026, and will serve on the Audit Committee. Both will participate in the non-employee director compensation program and enter into Indemnification Agreements with the company.