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Hertz Global
(NASDAQ:HTZ)
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Rating:47Neutral
Price Target:
$2.00
▼(-10.31% Downside)
Action:Reiterated
Date:09/06/26
The score is held down primarily by weak financial fundamentals—negative equity, high leverage, and persistently negative free cash flow despite some operating improvement. Technicals are neutral-to-slightly improved in the short term but remain weak over longer averages, while valuation is constrained by ongoing losses (negative P/E). Corporate actions modestly help liquidity/governance but are offset by dilution and used-car depreciation risk.
Positive Factors
Operating recovery
The sharp TTM revenue increase, alongside improved gross and operating margins, indicates meaningful recovery in rental activity and operating performance. If maintained, this progress can strengthen fixed-cost absorption and provide a better foundation for restoring profitability over the next several quarters.
Negative Factors
Highly leveraged, negative-equity balance sheet
Negative equity combined with very high debt materially limits financial flexibility and leaves Hertz more exposed to refinancing pressure and asset-value changes. The capital structure provides little balance-sheet cushion, making operating setbacks more consequential and constraining future capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating recovery
The sharp TTM revenue increase, alongside improved gross and operating margins, indicates meaningful recovery in rental activity and operating performance. If maintained, this progress can strengthen fixed-cost absorption and provide a better foundation for restoring profitability over the next several quarters.
Read all positive factors
Hertz Global Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Shows profitability across different business segments, highlighting which areas drive earnings and where there might be financial challenges.
Shows profitability across different business segments, highlighting which areas drive earnings and where there might be financial challenges.
Data provided by:
The Fly
The FlyHertz Global (HTZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$684.39M
Dividend YieldN/A
Average Volume (3M)15.74M
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth3.39%
EPS Growth89.28%
CountryUS
Employees26,000
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.89
Shares Outstanding356,451,400
10 Day Avg. Volume21,615,133
30 Day Avg. Volume15,737,419
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)-3.47
Price to Sales (P/S)0.19
P/FCF Ratio-0.18
Enterprise Value/Market Cap30.22
Enterprise Value/Revenue2.32
Enterprise Value/Gross Profit16.41
Enterprise Value/Ebitda6.91
Forecast
1Y Price Target
$2.26Price Target Upside1.35% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)-0.79
Revenue Forecast (FY)$9.18B
Hertz Global Business Overview & Revenue Model
Company Description
Hertz Global Holdings, Inc. operates as a leading player in the global vehicle rental industry. Its business is structured into two primary divisions: the Americas Rental Car segment and the International Rental Car segment. The company delivers i...
How the Company Makes Money
Hertz primarily generates revenue from renting vehicles to customers under its Hertz, Dollar, and Thrifty brands. The core revenue stream is rental charges, which typically vary based on rental duration (daily/weekly/monthly), vehicle class, locat...
Hertz Global Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
Overall the call emphasizes materially improved top-line momentum, improving unit economics and strategic progress on building a mobility platform (Oro) while acknowledging significant near-term headwinds from elevated recalls, ongoing GAAP losses and a modest pullback in capacity guidance. The operational and commercial trends (double-digit revenue growth vs. recent years, RPD gains, improved adjusted EBITDA performance, partnerships and product launches) are substantial positives that management believes will drive continued progress, but meaningful execution risk remains in managing recalls, returning to sustained profitability and scaling new mobility businesses.Positive Updates
Strong Revenue Growth
Revenue of $2.0 billion in Q1 2026, up 11% year-over-year — the company's strongest year-over-year revenue growth in three years; sequential improvements in RPU and RPD throughout the quarter.
Negative Updates
Continued GAAP Losses and Negative Adjusted EBITDA
GAAP net loss of $333 million in Q1 2026; adjusted EBITDA remains negative $161 million (though improved), indicating the company has not yet reached sustained GAAP profitability.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue of $2.0 billion in Q1 2026, up 11% year-over-year — the company's strongest year-over-year revenue growth in three years; sequential improvements in RPU and RPD throughout the quarter.
Read all positive updates
Company Guidance
On guidance, Hertz said it still expects to hit full‑year EBITDA margin of about 3%–6% (and is targeting $1.0B EBITDA in 2027) while modestly dialing back capacity: days are now expected up mid‑single‑digits (vs. prior mid‑to‑high) and fleet up low‑single‑digits (vs. prior mid‑single‑digits), with DOE per day roughly flat year‑over‑year; for Q2 specifically they expect days down 2–3% YoY, fleet down 1–2%, RPD improvement greater than Q1 (Q1 RPD ~5–5.5%), Q2 EBITDA margin in the low‑to‑mid single digits, and net DPU “well below” $300/month in Q2 (full‑year net DPU expected below the $300/month North Star). For context Q1 metrics included $2.0B revenue (+11% YoY), adjusted EBITDA of –$161M (improved $141M YoY), adjusted net loss of –$224M (improved ~$105M YoY), adjusted DOE/day $38.43 (+1.7% YoY), gross depreciation per unit/month $296 (Q1 net DPU $312), recalls up ~300% (removing ~16,000 vehicles/month and reducing utilization ~200 bps), and liquidity of ~$837M at quarter‑end (plus $200M ABS in April) with ~<$1B expected end‑Q2 and >$1.5B expected year‑end.Hertz Global Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
12
Very Negative
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.91B | 8.50B | 9.05B | 9.37B | 8.69B | 7.34B |
| Gross Profit | 1.26B | 971.00M | 283.00M | 1.73B | 3.03B | 2.74B |
| EBITDA | 3.00B | 2.51B | 1.85B | 3.64B | 3.85B | 1.95B |
| Net Income | -279.00M | -747.00M | -2.86B | 616.00M | 2.06B | 366.00M |
Balance Sheet | ||||||
| Total Assets | 23.87B | 22.31B | 21.80B | 24.61B | 22.50B | 19.78B |
| Cash, Cash Equivalents and Short-Term Investments | 631.00M | 1.17B | 592.00M | 764.00M | 943.00M | 2.26B |
| Total Debt | 21.09B | 19.20B | 18.41B | 17.83B | 15.66B | 4.50B |
| Total Liabilities | 24.50B | 22.77B | 21.65B | 21.51B | 19.85B | 16.81B |
| Stockholders Equity | -628.00M | -459.00M | 153.00M | 3.09B | 2.65B | 2.98B |
Cash Flow | ||||||
| Free Cash Flow | -8.46B | -8.65B | -8.40B | -7.23B | -1.71B | -5.42B |
| Operating Cash Flow | 1.43B | 1.63B | 2.22B | 2.47B | 2.54B | 1.81B |
| Investing Cash Flow | -2.50B | -2.00B | -2.93B | -4.02B | -4.23B | -3.54B |
| Financing Cash Flow | 1.25B | 372.00M | 658.00M | 1.31B | 487.00M | 2.85B |
Hertz Global Technical Analysis
Neutral
2.23
Price Trends
2.01
Negative
2.76
Negative
4.03
Negative
Market Momentum
-0.03
Negative
49.77
Neutral
57.92
Neutral
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 2.23 is above the 20-day moving average (MA) of 1.84, above the 50-day MA of 2.01, and below the 200-day MA of 4.03, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 57.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HTZ.
Hertz Global Risk Analysis
Hertz Global disclosed 50 risk factors in its most recent earnings report. Hertz Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hertz Global Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $9.15B | 19.36 | 16.70% | 1.57% | 1.12% | 3.84% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $3.09B | -46.14 | -7.45% | 1.64% | -2.51% | -162.51% | |
50 Neutral | $9.93B | 302.05 | 0.60% | 0.25% | 3.02% | -89.75% | |
49 Neutral | $4.13B | 83.99 | 2.56% | 2.27% | 28.50% | 67.75% | |
48 Neutral | $3.74B | -5.88 | 20.63% | 5.19% | 0.45% | 71.43% | |
47 Neutral | $684.39M | -2.16 | 50.96% | ― | 3.39% | 89.28% |
* Industrials Sector Average
HTZ
Hertz Global
1.92
-3.57
-65.03%
UHAL
U-Haul
57.39
1.67
3.00%
CAR
Avis Budget
105.98
-43.50
-29.10%
WSC
WillScot Mobile Mini Holdings
17.07
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-20.48%
HRI
Herc Holdings
123.46
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4.29%
R
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238.55
61.90
35.04%
Hertz Global Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Hertz Global Expands Fleet Financing With New ABS Issuance
Neutral
Aug 28, 2026
On August 27, 2026, Hertz Vehicle Financing III LLC, a wholly owned, bankruptcy-remote subsidiary of The Hertz Corporation, issued two new series of fixed-rate rental car asset-backed notes with an aggregate principal amount of $875.8 million acro...
Business Operations and StrategyLegal Proceedings
Hertz Global Updates Voting Agreement, Enhancing Shareholder Protections
Positive
Aug 20, 2026
On August 20, 2026, Hertz Global Holdings, Inc. amended and restated its voting agreement with major shareholder CK Amarillo LP as part of the settlement of the Cascia v. Farmer litigation. The revised arrangement caps CK Amarillo’s effectiv...
Business Operations and StrategyPrivate Placements and Financing
Hertz Global adjusts public warrant terms after new notes
Neutral
Jul 23, 2026
On June 29, 2026, The Hertz Corporation issued $350 million of 6.75% Exchangeable Senior First-Lien Secured PIK Notes due 2030, followed by an additional $30 million issued on July 10, 2026, under an option exercised by the initial purchasers. The...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.