Herc Holdings (HRI) AI Stock Analysis

• Market Cap: $4.57B
• Dividend Yield: 1.95%
• Average Volume (3M): 495.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• 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: 532,929
• 30 Day Avg. Volume: 495,955
• PEG Ratio: -0.65
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 1.59
• P/FCF Ratio: 336.06
• Enterprise Value/Market Cap: 2.98
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 10.01
• Enterprise Value/Ebitda: 15.84
• 1Y Price Target: $167.50
• Price Target Upside: 17.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: $148.00 ▲(4.19% Upside)

Herc Holdings' overall score is driven by strong technical momentum and positive earnings call insights, offset by weak financial performance and valuation concerns. The company's growth initiatives and successful acquisition integration are promising, but profitability and cash flow issues remain significant risks.

Positive Factors

Successful Acquisition Integration

Rapid integration of acquisitions enhances operational efficiency and scalability, allowing Herc Holdings to leverage synergies and improve long-term growth prospects.

Revenue Growth

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

Proactive Fleet Management

Strategic investments in fleet management and specialty equipment enhance operational capabilities and position the company for future growth.

Negative Factors

Profitability Challenges

Persistent profitability issues, as indicated by negative margins, could hinder financial stability and limit reinvestment opportunities.

Cash Flow Management

Negative free cash flow suggests challenges in cash management, potentially affecting the company's ability to fund operations and growth initiatives.

Local Market Challenges

High interest rates and local market challenges may restrict growth opportunities, impacting the company's ability to capitalize on new projects.

Herc Holdings Business Overview & Revenue Model

Company Description

Herc Holdings Inc. (HRI) is a leading equipment rental company that provides a wide range of rental equipment and services to various sectors including construction, industrial, and commercial markets. The company operates primarily under the Herc Rentals brand, offering an extensive fleet of rental equipment such as aerial equipment, earthmoving equipment, material handling equipment, and general tools. Additionally, Herc Holdings focuses on providing value-added services, including equipment maintenance and repair, to enhance customer satisfaction and operational efficiency.

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 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	-410.00M	16.00M	-390.00M	-355.50M	102.20M	225.40M
Operating Cash Flow	331.00M	1.23B	1.09B	916.70M	744.00M	610.90M
Investing Cash Flow	-268.00M	-1.51B	-1.58B	-1.68B	-961.30M	-207.50M
Financing Cash Flow	3.88B	299.00M	512.00M	784.10M	219.60M	-406.00M

Herc Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 142.05
• 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 HRI, the sentiment is Positive. The current price of 142.05 is above the 20-day moving average (MA) of 129.11, above the 50-day MA of 128.06, and above the 200-day MA of 135.28, indicating a bullish trend. The MACD of 3.87 indicates Negative momentum. The RSI at 64.21 is Neutral, neither overbought nor oversold. The STOCH value of 60.60 is Neutral, 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	―	$55.43B	22.41	28.78%	0.71%	6.73%	1.45%
WSC	―	$3.96B	36.34	9.82%	0.97%	-2.34%	-37.24%
MGRC	―	$2.69B	18.82	12.70%	1.80%	4.77%	-35.44%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HRI	―	$4.57B	―	-4.05%	1.95%	19.40%	-120.47%
R	―	$6.83B	14.35	16.26%	1.97%	1.68%	9.91%
CAR	―	$4.78B	―	―	―	-1.22%	-639.34%

Herc Holdings Corporate Events

Herc Holdings Faces Integration Challenges in H&E Acquisition: Potential Risks to Earnings and Stock Performance

Herc Holdings Inc. faces a significant risk concerning the anticipated benefits from its acquisition of H&E. While the company expects to leverage synergies through the complementary footprint and fleet mix, the complexity of integrating operations poses challenges. If these benefits are not realized as planned, it could adversely affect Herc’s operational results, cash flows, and stock price, potentially causing earnings dilution and delaying accretive effects. The uncertainty surrounding the timely and efficient implementation of these synergies underscores a critical risk factor for the company.

Herc Holdings Reports Strong Q3 2025 Performance

Herc Holdings Inc., operating through its subsidiary Herc Rentals Inc., is a leading equipment rental supplier in North America, offering a wide range of products and services to enhance customer efficiency and safety. The company recently completed the integration of H&E Equipment Services, expanding its reach to 612 locations across the continent.

Herc Holdings Inc. Earnings Call: Growth Amid Challenges

Herc Holdings Inc.’s recent earnings call conveyed a balanced sentiment, acknowledging significant progress in integration and growth in mega projects and specialty solutions, while also recognizing challenges in local markets and operational inefficiencies. The company emphasized its commitment to optimizing fleet management and improving margins amid cautious economic and market conditions.

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.