Hertz Global (HTZ) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: N/A
• Average Volume (3M): 8.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -7.36%
• EPS Growth: 62.27%
• Country: US
• Employees: 26,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.12
• Shares Outstanding: 311,592,900
• 10 Day Avg. Volume: 5,365,451
• 30 Day Avg. Volume: 8,079,004
• PEG Ratio: <0.01
• Price to Book (P/B): 7.32
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -0.13
• Enterprise Value/Market Cap: 12.76
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 22.09
• Enterprise Value/Ebitda: 8.58
• 1Y Price Target: $4.25
• Price Target Upside: -17.48% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): -1.88
• Revenue Forecast (FY): $8.48B

• Rating: 50 Neutral
• Price Target: $5.00 ▼(-2.91% Downside)

Hertz Global's overall stock score reflects significant financial challenges, with high leverage and ongoing losses weighing heavily. Despite positive developments in the earnings call and corporate events, the technical and valuation aspects remain weak, limiting the stock's attractiveness.

Positive Factors

Fleet Transformation

The fleet refresh enhances operational efficiency and customer satisfaction, supporting long-term growth and competitive positioning.

Operational Leadership

The appointment of an experienced COO is expected to improve operational processes and financial performance, strengthening the company's market position.

Debt Management

Strategic debt management through asset-backed notes enhances financial flexibility and supports fleet expansion, crucial for long-term stability.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting future investments and impacting long-term financial health.

Negative Revenue Growth

Declining revenue growth indicates challenges in market demand and competitive pressures, affecting future profitability.

Fleet Recall Challenges

Fleet recalls disrupt operations and reduce fleet availability, potentially affecting customer satisfaction and revenue generation.

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 generates revenue primarily through its car rental services, which accounts for the majority of its earnings. Customers pay for daily, weekly, or monthly rentals, with rates varying based on vehicle type, rental duration, and geographic location. Additionally, Hertz earns money from ancillary services, including insurance products, GPS rentals, and fuel purchase options. The company also benefits from long-term vehicle leasing and fleet management services provided to corporate clients. Partnerships with airlines and travel agencies enhance its visibility and customer reach, leading to strategic collaborations that drive additional bookings. Furthermore, Hertz has engaged in fleet acquisition and management strategies, allowing it to maintain an optimal fleet size and reduce operational costs, ultimately contributing to its profitability.

Hertz Global Financial Statement Overview

Summary

Hertz Global faces significant financial challenges. The income statement shows substantial losses with a negative net profit margin and declining revenues. The balance sheet is burdened with high leverage and negative equity, indicating financial risk. Cash flow analysis reveals negative free cash flow, though operating cash flow remains positive, suggesting some operational efficiency.

Income Statement

Hertz Global's income statement shows significant challenges, with a negative net profit margin of -29.58% in the TTM period, indicating substantial losses. The revenue growth rate is also negative, reflecting a decline in sales. While EBITDA margin remains positive at 11.88%, the overall profitability is concerning due to negative EBIT and net income figures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of -39.17 in the TTM period, indicating significant leverage and financial risk. The negative stockholders' equity further exacerbates this risk. Return on equity is also negative, highlighting the company's inability to generate profits from its equity base.

Cash Flow

Cash flow analysis shows a mixed picture. Operating cash flow remains positive, but free cash flow is negative, indicating cash outflows after capital expenditures. The free cash flow to net income ratio is negative, reflecting challenges in converting earnings into free cash flow. However, the operating cash flow to net income ratio is relatively stable, suggesting some operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.52B	9.05B	9.37B	8.69B	7.34B	5.26B
Gross Profit	927.00M	283.00M	1.73B	3.03B	2.74B	-376.00M
EBITDA	2.39B	1.85B	3.64B	3.84B	1.95B	1.04B
Net Income	-1.03B	-2.86B	616.00M	2.06B	366.00M	-1.71B
Balance Sheet
Total Assets	22.99B	21.80B	24.61B	22.50B	19.78B	16.91B
Cash, Cash Equivalents and Short-Term Investments	1.09B	592.00M	764.00M	943.00M	2.26B	1.10B
Total Debt	7.94B	18.41B	17.83B	15.66B	4.50B	6.32B
Total Liabilities	23.31B	21.65B	21.51B	19.85B	16.81B	16.82B
Stockholders Equity	-317.00M	153.00M	3.09B	2.65B	2.98B	56.00M
Cash Flow
Free Cash Flow	1.97B	-8.40B	-7.23B	-1.71B	-5.42B	-4.69B
Operating Cash Flow	1.85B	2.22B	2.47B	2.54B	1.81B	953.00M
Investing Cash Flow	-1.38B	-2.93B	-4.02B	-4.23B	-3.54B	4.59B
Financing Cash Flow	179.00M	658.00M	1.31B	487.00M	2.85B	-5.37B

Hertz Global Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTZ, the sentiment is Neutral. The current price of 5.15 is above the 20-day moving average (MA) of 5.15, below the 50-day MA of 5.39, and below the 200-day MA of 5.87, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HTZ.

Hertz Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLFC	71 Outperform	$915.82M	8.04	18.91%	0.86%	27.90%	19.25%
WSC	69 Neutral	$3.43B	15.59	21.15%	1.48%	-3.64%	867.62%
HRI	67 Neutral	$5.12B	-61.11	-4.05%	1.82%	19.40%	-120.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGRC	58 Neutral	$2.66B	18.29	12.70%	1.79%	4.77%	-35.44%
HTZ	50 Neutral	$1.60B	-1.49	-567.03%	―	-7.36%	62.27%
CAR	41 Neutral	$4.60B	-2.19	―	―	-1.22%	-639.34%

Hertz Global Corporate Events

Hertz Global Issues $1 Billion Asset-Backed Notes

On December 5, 2025, Hertz Vehicle Financing III LLC, a subsidiary of The Hertz Corporation, issued two series of fixed rate rental car asset-backed notes totaling $1 billion. This move is part of Hertz’s strategy to finance its U.S. rental car fleet through securitization, with proceeds partly used to repay existing debt and potentially fund future vehicle acquisitions. Additionally, Hertz announced its intention to redeem $300 million of its senior notes due in 2026, reflecting a strategic effort to manage its debt obligations and optimize financial operations.

Hertz Global Appoints Michael Moore as COO

On September 30, 2025, Hertz appointed Michael Moore as Executive Vice President, Chief Operating Officer. Moore, with over 25 years of experience in fleet operations, has held significant roles at Delta Air Lines and Virgin Galactic. His appointment is expected to enhance operational efficiency and financial performance at Hertz.

Hertz Global Completes $425M Notes Offering

On September 29, 2025, Hertz Corporation, a subsidiary of Hertz Global Holdings, completed an offering of $425 million in 5.500% Exchangeable Senior Notes due 2030. This financial move includes a premium exchange price and is aimed at enhancing the company’s financial flexibility. The Notes are guaranteed by Hertz Corp.’s subsidiaries and are subject to specific conditions regarding exchange and redemption. Additionally, Hertz entered into capped call transactions to mitigate potential stock dilution, reflecting strategic financial management to bolster its market position.

Hertz Global Announces Pricing of $375M Senior Notes

On September 25, 2025, Hertz Corp. announced the pricing of $375 million in 5.500% Exchangeable Senior Notes due 2030, with an option for initial purchasers to buy an additional $50 million. The proceeds will be used for partial redemption of existing Senior Notes due 2026 and general corporate purposes. The issuance aims to strengthen Hertz’s financial position and potentially impact its stock price through related derivative transactions.

Hertz Global Announces $250M Exchangeable Notes Offering

On September 24, 2025, Hertz Global Holdings announced that its subsidiary, The Hertz Corporation, plans to offer $250 million in Exchangeable Senior Notes due 2030 in a private offering. The proceeds from this offering will be used to fund capped call transactions and partially redeem or repurchase existing Senior Notes due 2026. This strategic financial move is expected to impact the company’s operations and market positioning by potentially affecting the market price of its common stock and the exchange price of the Notes.

Hertz Global Receives $154M Settlement Distribution

On September 23, 2025, Hertz Global Holdings, Inc. received notice of a pro rata settlement distribution amounting to $154,054,348.07 from a class action settlement in the Automotive Parts Antitrust Litigation. This settlement is expected to impact Hertz’s financial position positively, with the distribution anticipated around September 30, 2025.