Hertz Global (HTZ) AI Stock Analysis

• Market Cap: $2.11B
• Dividend Yield: N/A
• Average Volume (3M): 8.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -7.58%
• EPS Growth: -225.06%
• Country: US
• Employees: 26,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): -0.34
• Shares Outstanding: 310,786,200
• 10 Day Avg. Volume: 7,467,450
• 30 Day Avg. Volume: 8,143,175
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 9.81
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 249.67
• Enterprise Value/Ebitda: 20.26
• 1Y Price Target: $4.42
• Price Target Upside: -35.00% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 47 Neutral
• Price Target: $6.00 ▼(-11.76% Downside)

Hertz Global's overall stock score is primarily impacted by its significant financial challenges, including high leverage and negative profitability. While there are positive developments in operational improvements and strategic financing, these are overshadowed by the company's current financial distress and valuation concerns.

Positive Factors

Operational Improvements

Achieving positive adjusted corporate EBITDA indicates significant operational improvements, enhancing long-term profitability and financial resilience.

Fleet Management Strategy

Effective fleet management and cost control strategies improve asset utilization and operational efficiency, supporting sustainable growth.

Customer Loyalty Growth

Improved customer satisfaction and loyalty metrics suggest enhanced brand strength and potential for increased repeat business.

Negative Factors

High Leverage

High leverage and negative equity pose significant financial risks, limiting flexibility and increasing vulnerability to economic downturns.

Revenue Decline

A decline in revenue indicates challenges in maintaining market share and pricing power, potentially impacting long-term growth prospects.

Cash Flow Challenges

Negative free cash flow growth reflects difficulties in cash generation, which can constrain investment in growth initiatives and debt servicing.

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 operations, which include daily and weekly rental fees from both individual customers and corporate accounts. The company also earns income from ancillary services such as insurance, GPS rentals, and fuel services. Additionally, Hertz has a significant presence in the leasing and fleet management sector, providing vehicles to businesses. Partnerships with travel and tourism companies, as well as loyalty programs, help drive customer retention and increase booking frequency, contributing further to its revenue streams.

Hertz Global Financial Statement Overview

Summary

Hertz Global is facing significant financial challenges across all verticals. The income statement shows declining revenues and profitability, while the balance sheet reveals high leverage and negative equity. Cash flow metrics indicate difficulties in generating and managing cash. The company needs to address these issues to improve financial health and stability.

Income Statement

Hertz Global's income statement reveals significant challenges. The TTM data shows a negative net profit margin of -29.58% and a declining revenue growth rate of -1.91%, indicating financial distress. The EBIT margin is also negative at -22.90%, reflecting operational inefficiencies. Although the EBITDA margin is positive at 11.88%, it is insufficient to offset the overall negative performance. The company has experienced a downward trend in revenue and profitability over the past few years.

Balance Sheet

The balance sheet highlights substantial financial leverage with a negative stockholders' equity, resulting in an alarming debt-to-equity ratio of -39.17 in the TTM period. This indicates a precarious financial position with high leverage risk. The return on equity is also negative, reflecting poor returns for shareholders. The equity ratio is negative, suggesting that liabilities exceed assets, which is a significant concern for financial stability.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate of -81.89% in the TTM period, indicating cash flow challenges. The operating cash flow to net income ratio is 0.70, suggesting some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio is negative, highlighting issues in converting earnings into free cash flow. Overall, cash flow management appears strained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.61B	9.05B	9.37B	8.69B	7.34B	5.26B
Gross Profit	83.00M	-251.00M	1.73B	3.03B	2.72B	-376.00M
EBITDA	1.02B	1.85B	3.64B	3.84B	1.95B	1.04B
Net Income	-2.55B	-2.86B	616.00M	2.06B	366.00M	-1.71B
Balance Sheet
Total Assets	23.08B	21.80B	24.61B	22.50B	19.78B	16.91B
Cash, Cash Equivalents and Short-Term Investments	1.13B	592.00M	774.00M	943.00M	2.26B	1.10B
Total Debt	19.74B	18.41B	17.83B	15.66B	12.42B	7.90B
Total Liabilities	23.59B	21.65B	21.51B	19.85B	16.81B	16.82B
Stockholders Equity	-504.00M	153.00M	3.09B	2.65B	2.98B	56.00M
Cash Flow
Free Cash Flow	-785.00M	-8.40B	-7.23B	-8.21B	-5.42B	-4.69B
Operating Cash Flow	1.91B	2.22B	2.47B	2.54B	1.81B	953.00M
Investing Cash Flow	-1.71B	-2.93B	-4.02B	-4.23B	-3.54B	4.59B
Financing Cash Flow	-76.00M	658.00M	1.31B	487.00M	2.85B	-5.37B

Hertz Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.80
• 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 6.8 is above the 20-day moving average (MA) of 5.94, above the 50-day MA of 6.24, and above the 200-day MA of 5.37, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 64.22 is Neutral, neither overbought nor oversold. The STOCH value of 78.39 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
MGRC	81 Outperform	2.97B	11.76	21.70%	1.59%	8.78%	117.40%
WLFC	68 Neutral	992.91M	8.66	17.97%	0.69%	30.08%	32.62%
WSC	66 Neutral	4.11B	37.71	10.61%	0.93%	-2.34%	-37.24%
HRI	50 Neutral	3.96B	138.05	1.20%	2.32%	11.41%	-92.67%
HTZ	47 Neutral	$2.11B	―	-350.48%	―	-7.58%	-225.06%
CAR	44 Neutral	5.55B	-2.49	80.95%	―	-2.25%	-395.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hertz Global Corporate Events

Hertz Global Announces Executive VP Resignation

On August 19, 2025, Hertz Global Holdings announced the resignation of Eric Leef, Executive Vice President and Chief Human Resources Officer, effective September 5, 2025. Christopher G. Berg will oversee the HR function during the transition as the company seeks a permanent successor, reflecting Hertz’s strategic succession planning.

Hertz Global Appoints New Chief Accounting Officer

On July 31, 2025, Hertz Corporation announced the appointment of Mark Kosman as Senior Vice President, Chief Accounting Officer, effective no later than September 1, 2025. Kosman, who previously held significant roles at Ford Motor Company, will receive a comprehensive compensation package including a base salary, incentive plans, and relocation assistance. Additionally, Katherine Lee Martin, the company’s Executive Vice President and General Counsel, announced her resignation effective August 15, 2025, to pursue another opportunity, with an interim general counsel to be appointed during the search for her permanent replacement.

Hertz Global Amends European ABS Securitization Agreements

On July 17, 2025, The Hertz Corporation’s affiliates amended agreements related to their European ABS securitization platform, allowing for the issuance of new Class C Notes worth €100,000,000. These notes, maturing in April 2027 with a fixed interest rate of 10.54%, are subordinated to Class A and B Notes and issued on a revolving basis. The amendments impact Hertz’s financing activities for vehicle fleets, enhancing its operational capabilities in the European market.

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.