Hertz Global (HTZ) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: N/A
• Average Volume (3M): 28.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -6.61%
• EPS Growth: -1516.07%
• Country: US
• Employees: 26,000
• Sector: Industrials
• Sector Strength: 91
• Industry: Rental & Leasing Services
• EPS (TTM): -1.12
• Shares Outstanding: 309,311,070
• 10 Day Avg. Volume: 14,356,862
• 30 Day Avg. Volume: 28,122,150
• PEG Ratio: 0.15
• Price to Book (P/B): 13.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.34
• Enterprise Value/Market Cap: 9.58
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: -79.22
• Enterprise Value/Ebitda: 1.75
• 1Y Price Target: $3.78
• Price Target Upside: -43.67% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

Hertz Global's overall stock score reflects significant financial difficulties, including declining revenue, negative earnings, and high leverage, which are major concerns. While there are some strategic improvements noted in fleet management and cost control, they are overshadowed by ongoing challenges in revenue and market conditions. Technical indicators offer mixed signals, and the valuation remains unattractive due to negative profitability. The earnings call provided some positive strategic initiatives but also highlighted persistent risks.

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 Performance

Hertz shares declined 16.9% following the release of results featuring a bigger EBITDA loss on account of softer top-line trends coupled with higher vehicle interest and SG&A expenses.

Market Share

Hertz is likely to cede market share due to macroeconomic uncertainty and signs of travel demand waning.

Hertz Global Business Overview & Revenue Model

Company Description

Hertz Global Holdings, Inc. is a leading global car rental company that provides vehicle rental services through its Hertz, Dollar, and Thrifty brands. Founded in 1918 and headquartered in Estero, Florida, Hertz operates in multiple sectors including airports, off-airport locations, and international markets. The company offers a wide range of vehicles for rent including cars, SUVs, trucks, and luxury vehicles, catering to both leisure and business travelers.

How the Company Makes Money

Hertz Global makes money primarily through its vehicle rental services, which are categorized into two main segments: U.S. Rental Car and International Rental Car. Revenue is generated from rental fees, additional service charges such as insurance, fuel purchase options, GPS rentals, and premium vehicle upgrades. The company also earns from fleet leasing and vehicle sales, particularly through its Rent2Buy program which allows customers to purchase cars directly from Hertz. Significant partnerships with travel agencies and corporate clients, as well as its loyalty programs, contribute to its revenue streams. Seasonal demand fluctuations, fleet management efficiency, and operational cost control are key factors influencing its earnings.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.05B	9.37B	8.69B	7.34B	5.26B
	Gross Profit
-251.00M	1.73B	3.03B	2.72B	-401.00M
	EBIT
-1.07B	756.00M	2.07B	2.06B	-1.06B
	EBITDA
1.85B	3.64B	3.84B	1.35B	1.04B
	Net Income Common Stockholders
-2.86B	616.00M	2.06B	366.00M	-1.72B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
592.00M	774.00M	943.00M	2.26B	1.10B
	Total Assets
21.80B	24.61B	22.50B	19.78B	16.91B
	Total Debt
18.41B	17.83B	15.66B	12.42B	7.90B
	Net Debt
17.82B	17.07B	14.72B	10.16B	6.81B
	Total Liabilities
21.65B	21.51B	19.85B	16.81B	16.82B
	Stockholders Equity
153.00M	3.09B	2.65B	2.98B	56.00M
Cash Flow		Free Cash Flow
-8.40B	-7.23B	-8.21B	-5.42B	-4.69B
	Operating Cash Flow
2.22B	2.47B	2.54B	1.81B	953.00M
	Investing Cash Flow
-2.93B	-4.02B	-4.23B	-3.54B	4.59B
	Financing Cash Flow
658.00M	1.31B	487.00M	2.85B	-5.37B

Hertz Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 6.71 is below the 20-day moving average (MA) of 6.89, above the 50-day MA of 5.32, and above the 200-day MA of 4.09, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 72.11 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	$6.46B	13.85	16.41%	2.01%	6.21%	47.05%
HRI	68 Neutral	$3.89B	30.61	9.60%	1.97%	8.34%	-63.02%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%
CTOS	59 Neutral	$1.06B	―	-3.76%	―	-0.61%	-248.58%
HEES	56 Neutral	$3.52B	38.59	15.74%	1.14%	-3.52%	-46.60%
CAR	56 Neutral	$3.97B	8.26	78.26%	―	-2.78%	-296.07%
HTZ	47 Neutral	$2.08B	―	-244.63%	―	-6.61%	-1516.07%

Hertz Global Corporate Events

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.

Spark’s Take on HTZ Stock

According to Spark, TipRanks’ AI Analyst, HTZ is a Neutral.

Hertz Global’s overall stock score is influenced by significant financial challenges, including declining revenue and high leverage. Despite positive cash flow, the negative equity and profitability issues are concerning. Technical analysis indicates strong upward momentum, but caution is warranted due to overbought indicators. Valuation is weak, with a negative P/E ratio and no dividend yield. The earnings call outlines strategic improvements, but financial and cost challenges remain substantial.

To see Spark’s full report on HTZ stock, click here.

Hertz Global’s Chief Accounting Officer Resigns

On March 12, 2025, Kelly Galloway, Senior Vice President and Chief Accounting Officer of Hertz Global Holdings, Inc., announced her resignation to pursue an opportunity outside the company. She will continue in her role until the filing of the quarterly report for the period ending March 31, 2025, after which Scott M. Haralson, the Executive Vice President and Chief Financial Officer, will take over as the principal accounting officer.