Hertz Global (HTZ) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: N/A
• Average Volume (3M): 7.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -6.61%
• EPS Growth: -1516.07%
• Country: US
• Employees: 26,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Rental & Leasing Services
• EPS (TTM): -1.12
• Shares Outstanding: 309,311,070
• 10 Day Avg. Volume: 8,908,490
• 30 Day Avg. Volume: 7,280,885
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.71
• Enterprise Value/Market Cap: 9.12
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: -87.10
• Enterprise Value/Ebitda: 2.36
• 1Y Price Target: $3.81
• Price Target Upside: -47.74% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8

• Rating: 50 Neutral
• Price Target: $7.00 ▼(-3.98%Downside)

Hertz Global's overall stock score reflects its ongoing financial difficulties, marked by declining revenue, high leverage, and negative profitability. While there are positive developments in fleet management and strategic initiatives, these are overshadowed by substantial financial risks and valuation concerns. The technical analysis suggests moderate stability, but not enough to offset the significant challenges.

Positive Factors

Leisure Travel Demand

The company continues to see strong demand in the leisure travel segment, with forward bookings increasing year-over-year.

Strategic Partnerships

Hertz's ongoing execution on cost efficiency measures includes a variety of partnerships with technology firms geared toward enhancing customer experience and cost productivity.

Negative Factors

Financial Leverage

The company is facing high financial leverage, potentially large free cash outflows should used vehicle prices decline more, high refinancing costs, and newly potential litigation costs.

Liquidity Challenges

Liquidity has tightened significantly, with a notable reduction in available funds from the previous quarter.

Market Share Loss

Hertz is likely to lose market share, contributing to the underperform rating.

Hertz Global Business Overview & Revenue Model

Company Description

Hertz Global Holdings, Inc. operates as a vehicle rental company. It operates through two segments, Americas Rental Car and International Rental Car. The company provides vehicle rental services under the Hertz, Dollar, and Thrifty brands from company-owned, licensee, and franchisee locations in the United States, Africa, Asia, Australia, Canada, the Caribbean, Europe, Latin America, the Middle East, and New Zealand. It also sells vehicles; and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets. Hertz Global Holdings, Inc. was founded in 1918 and is headquartered in Estero, Florida.

How the Company Makes Money

Hertz Global Holdings generates revenue primarily through car rental fees, which include base rental charges and additional fees such as insurance, fuel, and GPS services. The company earns money from both leisure and corporate customers, with airport locations being significant revenue generators due to the high volume of travelers. Additionally, Hertz engages in vehicle sales, selling off used vehicles from its rental fleet through retail and wholesale channels. Partnerships with airlines, hotels, and travel agencies also contribute to customer acquisition and revenue growth by providing bundled travel services and loyalty program integrations.

Hertz Global Financial Statement Overview

Summary

Hertz Global faces significant financial challenges with declining revenue, negative profitability, and high leverage. While operating cash flow remains positive, substantial liabilities and negative equity pose financial stability risks. The company needs to address revenue decline and leverage to improve its financial health.

Income Statement

Hertz Global's income statement reveals challenges with declining revenue, negative gross profit, and a significant net loss in the TTM. The gross profit margin has turned negative, and the net profit margin is also negative. Revenue has decreased by 3.44% from the previous year, indicating a concerning trend. The company shows a negative EBIT margin and a positive EBITDA margin, suggesting operational struggles but some ability to generate earnings before non-cash charges.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to substantial liabilities and minimal equity, indicating financial leverage risk. Stockholders' equity has decreased significantly, impacting the equity ratio negatively. The TTM return on equity is negative, reflecting the substantial net loss. Overall, the balance sheet highlights a risky financial position with potential solvency concerns.

Cash Flow

Cash flow analysis shows an increase in operating cash flow compared to net income, indicating an ability to generate cash despite net losses. However, free cash flow remains negative due to high capital expenditures, affecting the company's liquidity. The free cash flow to net income ratio is negative, highlighting cash generation struggles. Despite these issues, the company maintains positive operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.78B	9.05B	9.37B	8.69B	7.34B	5.26B
Gross Profit	-236.00M	-251.00M	1.73B	3.03B	2.72B	-401.00M
EBITDA	1.05B	1.85B	3.64B	3.84B	1.35B	1.04B
Net Income	-3.12B	-2.86B	616.00M	2.06B	366.00M	-1.72B
Balance Sheet
Total Assets	22.05B	21.80B	24.61B	22.50B	19.78B	16.91B
Cash, Cash Equivalents and Short-Term Investments	1.02B	592.00M	774.00M	943.00M	2.26B	1.10B
Total Debt	16.77B	18.41B	17.83B	15.66B	12.42B	7.90B
Total Liabilities	22.31B	21.65B	21.51B	19.85B	16.81B	16.82B
Stockholders Equity	-262.00M	153.00M	3.09B	2.65B	2.98B	56.00M
Cash Flow
Free Cash Flow	-4.33B	-8.40B	-7.23B	-8.21B	-5.42B	-4.69B
Operating Cash Flow	2.10B	2.22B	2.47B	2.54B	1.81B	953.00M
Investing Cash Flow	-2.94B	-2.93B	-4.02B	-4.23B	-3.54B	4.59B
Financing Cash Flow	573.00M	658.00M	1.31B	487.00M	2.85B	-5.37B

Hertz Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTZ, the sentiment is Positive. The current price of 7.29 is above the 20-day moving average (MA) of 6.53, above the 50-day MA of 6.71, and above the 200-day MA of 4.59, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 59.71 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTZ.

Hertz Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
R	69 Neutral	$7.09B	15.01	16.41%	1.89%	6.21%	47.05%
HRI	67 Neutral	$4.80B	32.24	9.60%	1.94%	8.34%	-63.02%
CTOS	64 Neutral	$1.16B	―	-3.76%	―	-0.61%	-248.58%
Sector *	61 Neutral	C$6.56B	9.41	3.50%	2.82%	6.99%	-11.09%
HEES	56 Neutral	$3.47B	38.00	15.74%	1.16%	-3.52%	-46.60%
CAR	52 Neutral	$6.38B	8.26	78.26%	―	-2.78%	-296.07%
HTZ	50 Neutral	$2.25B	―	-244.63%	―	-6.61%	-1516.07%

Hertz Global Corporate Events

Hertz Global Issues $685M Asset-Backed Notes for Fleet

On June 27, 2025, Hertz Vehicle Financing III LLC, a subsidiary of The Hertz Corporation, amended its Series 2021-A Supplement to issue $300 million in new Class B Notes with a fixed interest rate of 9.28%, maturing in June 2028. Additionally, on June 30, 2025, HVF III issued two series of rental car asset-backed notes totaling $685 million to finance its U.S. rental car fleet. These financial maneuvers are expected to support Hertz’s operational liquidity and fleet expansion, with implications for future vehicle acquisitions and refinancing efforts.

The most recent analyst rating on (HTZ) stock is a Sell with a $3.00 price target. To see the full list of analyst forecasts on Hertz Global stock, see the HTZ Stock Forecast page.

Hertz Global Elects Directors at Annual Meeting

On May 21, 2025, Hertz Global Holdings, Inc. held its 2025 Annual Meeting of Stockholders, where four director nominees were elected to the Board of Directors for a three-year term. Additionally, stockholders ratified the appointment of Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025, and approved the compensation of the company’s named executive officers on an advisory basis.

The most recent analyst rating on (HTZ) stock is a Sell with a $2.90 price target. To see the full list of analyst forecasts on Hertz Global stock, see the HTZ Stock Forecast page.

Hertz Global Amends European ABS Facility Maturity

On May 6, 2025, The Hertz Corporation announced an amendment to its credit agreement, extending the maturity date of $1.665 billion of its revolving credit facility to March 31, 2028, with certain additional limitations. Subsequently, on May 8, 2025, Hertz Vehicle Financing III LLC extended the commitment termination date for its Series 2021-A Variable Funding Rental Car Asset Backed Notes to May 7, 2027. Additionally, on May 9, 2025, Hertz’s affiliates amended their European ABS facility, extending the maturity date for €1.160 billion of Class A notes to April 30, 2027, impacting their vehicle fleet financing in several European countries.