Herc Holdings Inc. (HRI) 10-Year Financial Performance & Capital Metrics

HRI • • Industrial / General

IndustrialsRental & LeasingConstruction & Industrial Equipment RentalGeneral Construction Equipment Rental

AboutHerc Holdings Inc., through its subsidiaries, operates as an equipment rental supplier in the United States and internationally. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. The company also provides ProSolutions, an industry specific solution-based services, which include power generation, climate control, remediation and restoration, pump, trench shoring, and studio and production equipment; and ProContractor professional grade tools. In addition, it offers various services, including repair, maintenance, equipment management, and safety training; and equipment re-rental and on-site support services, as well as ancillary services, such as equipment transport, rental protection, cleaning, refueling, and labor. Further, the company sells used equipment and contractor supplies, such as construction consumables, tools, small equipment, and safety supplies. It serves non-residential and residential construction, specialty trade, restoration, remediation and environment, and facility maintenance contractors; industrial manufacturing industries, including automotive and aerospace, power, metals and mining, agriculture, pulp, paper and wood, food and beverage, and refineries and petrochemical industries; infrastructure and government sectors; and commercial facilities, hospitality, healthcare, recreation, entertainment production, and special event management customers. The company sells its products through its sales team and industry catalogs, as well as through participation and sponsorship of industry events, trade shows, and Internet. Herc Holdings Inc. was founded in 1965 and is based in Bonita Springs, Florida.Show more

Revenue $3.57B +8.7%
EBITDA $997M +12.4%
Net Income $211M -39.2%
EPS (Diluted) 7.40 -38.8%
Gross Margin 37.84% +1.5%
EBITDA Margin 27.94% +3.4%
Operating Margin 24.38% +3.3%
Net Margin 5.91% -44.1%
ROE 15.81% -45.7%
ROIC 10.82% -3.7%
Debt/Equity 3.63 +3.3%
Interest Coverage 3.35 -3.3%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 25.5%
✓Strong 5Y profit CAGR of 34.7%
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 12.3%

✗Weaknesses

✗High debt to equity ratio of 3.6x

Price & Volume

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Growth Metrics

Revenue CAGR

10Y7.26%

5Y12.29%

3Y19.84%

TTM19.4%

Profit (Net Income) CAGR

10Y8.93%

5Y34.75%

3Y-1.97%

TTM-119.83%

EPS CAGR

10Y8.85%

5Y35.33%

3Y0.14%

TTM-120.52%

ROCE

10Y Avg8.4%

5Y Avg11.99%

3Y Avg13.2%

Latest12.55%

Peer Comparison

General Construction Equipment Rental

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
URIUnited Rentals, Inc.	58.96B	926.57	23.95	7.07%	15.83%	28.11%	0.71%	1.72
HRIHerc Holdings Inc.	5.28B	158.81	21.46	8.71%	-1.68%	-3.58%	0.3%	3.63

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	1.68B	1.55B	1.75B	1.98B	2B	1.78B	2.07B	2.74B	3.28B	3.57B
Revenue Growth %	-0.05%	-0.07%	0.13%	0.13%	0.01%	-0.11%	0.16%	0.32%	0.2%	0.09%
Cost of Goods Sold+	1.28B	1.2B	1.33B	1.45B	1.46B	1.25B	1.32B	1.68B	2.06B	2.22B
COGS % of Revenue	0.76%	0.77%	0.76%	0.74%	0.73%	0.7%	0.64%	0.61%	0.63%	0.62%
Gross Profit+	401.3M	351.4M	425.2M	522M	542.3M	526.6M	756M	1.06B	1.22B	1.35B
Gross Margin %	0.24%	0.23%	0.24%	0.26%	0.27%	0.3%	0.36%	0.39%	0.37%	0.38%
Gross Profit Growth %	-0.11%	-0.12%	0.21%	0.23%	0.04%	-0.03%	0.44%	0.41%	0.15%	0.1%
Operating Expenses+	262.6M	274.5M	319.1M	311.3M	294.8M	257.4M	310M	411M	448M	480M
OpEx % of Revenue	0.16%	0.18%	0.18%	0.16%	0.15%	0.14%	0.15%	0.15%	0.14%	0.13%
Selling, General & Admin	262.6M	274.5M	319.1M	311.3M	294.8M	257.4M	310M	411M	448M	480M
SG&A % of Revenue	0.16%	0.18%	0.18%	0.16%	0.15%	0.14%	0.15%	0.15%	0.14%	0.13%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0
Operating Income+	138.7M	76.9M	106.1M	210.7M	247.5M	269.2M	446M	654M	775M	870M
Operating Margin %	0.08%	0.05%	0.06%	0.11%	0.12%	0.15%	0.22%	0.24%	0.24%	0.24%
Operating Income Growth %	-0.3%	-0.45%	0.38%	0.99%	0.17%	0.09%	0.66%	0.47%	0.19%	0.12%
EBITDA+	215.9M	121.7M	157.6M	268M	308.5M	331.7M	514M	749M	887M	997M
EBITDA Margin %	0.13%	0.08%	0.09%	0.14%	0.15%	0.19%	0.25%	0.27%	0.27%	0.28%
EBITDA Growth %	-0.21%	-0.44%	0.29%	0.7%	0.15%	0.08%	0.55%	0.46%	0.18%	0.12%
D&A (Non-Cash Add-back)	77.2M	44.8M	51.5M	57.3M	61M	62.5M	68M	95M	112M	127M
EBIT	138.7M	76.9M	106.1M	210.7M	247.5M	206.7M	378M	559M	663M	743M
Net Interest Income+	-32.9M	-84.2M	-128.6M	-131.6M	-119.9M	-92.6M	-86M	-122M	-224M	-260M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	32.9M	84.2M	128.6M	131.6M	119.9M	92.6M	86M	122M	224M	260M
Other Income/Expense	18.2M	-81.8M	-170.5M	-141.9M	-183.9M	-175.1M	-155M	-220M	-328M	-579M
Pretax Income+	156.9M	-4.9M	-64.4M	68.8M	63.6M	94.1M	291M	434M	447M	291M
Pretax Margin %	0.09%	-0%	-0.04%	0.03%	0.03%	0.05%	0.14%	0.16%	0.14%	0.08%
Income Tax+	45.6M	14.8M	-224.7M	-300K	16.1M	20.4M	67M	104M	100M	80M
Effective Tax Rate %	0.71%	4.02%	-2.49%	1%	0.75%	0.78%	0.77%	0.76%	0.78%	0.73%
Net Income+	111.3M	-19.7M	160.3M	69.1M	47.5M	73.7M	224M	330M	347M	211M
Net Margin %	0.07%	-0.01%	0.09%	0.03%	0.02%	0.04%	0.11%	0.12%	0.11%	0.06%
Net Income Growth %	0.24%	-1.18%	9.14%	-0.57%	-0.31%	0.55%	2.04%	0.47%	0.05%	-0.39%
Net Income (Continuing)	111.3M	-19.7M	160.3M	69.1M	47.5M	73.7M	224M	330M	347M	211M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	3.93	-0.72	5.60	2.39	1.63	2.51	7.37	10.92	12.09	7.40
EPS Growth %	0.24%	-1.18%	8.78%	-0.57%	-0.32%	0.54%	1.94%	0.48%	0.11%	-0.39%
EPS (Basic)	3.93	-0.73	5.66	2.43	1.66	2.53	7.57	11.15	12.18	7.43
Diluted Shares Outstanding	28.31M	28.3M	28.6M	28.9M	29.1M	29.4M	30.4M	30.2M	28.7M	28.5M
Basic Shares Outstanding	28.31M	28.14M	28.3M	28.4M	28.7M	29.1M	29.6M	29.6M	28.5M	28.4M
Dividend Payout Ratio	-	-	-	-	-	-	0.07%	0.21%	0.21%	0.36%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	371.3M	371.7M	474.5M	400.4M	399.7M	367.1M	469.7M	643.5M	732M	776M
Cash & Short-Term Investments	15.7M	11.6M	41.5M	27.8M	33M	33M	35.1M	53.5M	71M	83M
Cash Only	15.7M	11.6M	41.5M	27.8M	33M	33M	35.1M	53.5M	71M	83M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	287.8M	293.3M	386.3M	332.4M	306.7M	301.2M	388.1M	522.5M	563M	589M
Days Sales Outstanding	62.59	68.85	80.36	61.38	56	61.72	68.33	69.6	62.61	60.25
Inventory	22.3M	24.1M	23.7M	17.9M	0	0	0	0	0	0
Days Inventory Outstanding	6.37	7.31	6.51	4.49	-	-	-	-	-	-
Other Current Assets	24.8M	7M	23M	22.3M	60M	32.9M	46.5M	67.5M	68M	57M
Total Non-Current Assets+	3.04B	3.09B	3.08B	3.21B	3.42B	3.22B	4.02B	5.31B	6.33B	7.1B
Property, Plant & Equipment	2.63B	2.66B	2.66B	2.79B	3.01B	2.81B	3.39B	4.43B	4.96B	1.41B
Fixed Asset Turnover	0.64x	0.58x	0.66x	0.71x	0.66x	0.63x	0.61x	0.62x	0.66x	2.54x
Goodwill	91M	91M	91M	91M	93.6M	100.5M	231.5M	418.7M	483M	670M
Intangible Assets	300.5M	303.9M	283.9M	293.5M	291.5M	295.9M	388.7M	431.4M	467M	572M
Long-Term Investments	-2.88B	-2.7M	2.1M	3.6M	-211.2M	-163.2M	0	-354.9M	0	0
Other Non-Current Assets	14.9M	34.7M	36M	38.1M	23.1M	18.2M	13.1M	34.1M	418M	4.45B
Total Assets+	3.41B	3.46B	3.55B	3.61B	3.82B	3.59B	4.49B	5.96B	7.06B	7.88B
Asset Turnover	0.49x	0.45x	0.49x	0.55x	0.52x	0.50x	0.46x	0.46x	0.46x	0.45x
Asset Growth %	-0.06%	0.02%	0.02%	0.02%	0.06%	-0.06%	0.25%	0.33%	0.19%	0.12%
Total Current Liabilities+	282.3M	243.3M	290.7M	299.2M	323.1M	328M	529.9M	604M	508M	562M
Accounts Payable	109.5M	139M	152M	147M	126.5M	125.8M	280.6M	318.3M	212M	248M
Days Payables Outstanding	31.3	42.16	41.74	36.88	31.7	36.6	77.77	69.36	37.58	40.81
Short-Term Debt	83.4M	15.7M	25.4M	29.9M	30.4M	3.6M	0	16M	19M	4M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	0	1000K	1000K	1000K	0
Other Current Liabilities	41.6M	4.2M	14.8M	27.8M	16M	15.9M	62.5M	113.6M	88M	224M
Current Ratio	1.32x	1.53x	1.63x	1.34x	1.24x	1.12x	0.89x	1.07x	1.44x	1.38x
Quick Ratio	1.24x	1.43x	1.55x	1.28x	1.24x	1.12x	0.89x	1.07x	1.44x	1.38x
Cash Conversion Cycle	37.67	34	45.14	28.99	-	-	-	-	-	-
Total Non-Current Liabilities+	812.7M	2.9B	2.75B	2.74B	2.85B	2.52B	2.98B	4.24B	5.28B	5.92B
Long-Term Debt	53.3M	2.18B	2.14B	2.13B	2.02B	1.62B	1.87B	2.92B	3.61B	4.11B
Capital Lease Obligations	0	0	112.9M	116.3M	334.2M	377.2M	539.8M	635.5M	811M	902M
Deferred Tax Liabilities	727.3M	687.4M	462.8M	448.3M	459.3M	474M	536.8M	646.5M	743M	800M
Other Non-Current Liabilities	759.4M	726.8M	35.8M	43.8M	39M	44.3M	32.1M	40M	114M	107M
Total Liabilities	1.09B	3.14B	3.04B	3.04B	3.17B	2.85B	3.51B	4.85B	5.79B	6.48B
Total Debt+	136.7M	2.19B	2.28B	2.28B	2.41B	2.05B	2.47B	3.62B	4.48B	5.07B
Net Debt	121M	2.18B	2.23B	2.25B	2.38B	2.02B	2.43B	3.56B	4.41B	4.99B
Debt / Equity	0.06x	6.81x	4.46x	3.97x	3.74x	2.76x	2.53x	3.26x	3.52x	3.63x
Debt / EBITDA	0.63x	18.03x	14.44x	8.49x	7.82x	6.17x	4.80x	4.83x	5.05x	5.09x
Net Debt / EBITDA	0.56x	17.94x	14.17x	8.39x	7.71x	6.07x	4.73x	4.76x	4.97x	5.00x
Interest Coverage	4.22x	0.91x	0.83x	1.60x	2.06x	2.91x	5.19x	5.36x	3.46x	3.35x
Total Equity+	2.31B	322.4M	510.4M	572.7M	644.3M	742M	976.9M	1.11B	1.27B	1.4B
Equity Growth %	0.36%	-0.86%	0.58%	0.12%	0.13%	0.15%	0.32%	0.13%	0.15%	0.1%
Book Value per Share	81.67	11.39	17.85	19.82	22.14	25.24	32.13	36.71	44.36	48.98
Total Shareholders' Equity	2.31B	322.4M	510.4M	572.7M	644.3M	742M	976.9M	1.11B	1.27B	1.4B
Common Stock	4.6M	300K	300K	300K	300K	300K	300K	300K	0	0
Retained Earnings	-605.5M	-625.2M	-462.4M	-391.1M	-351.2M	-277.5M	-53.4M	224.1M	498M	633M
Treasury Stock	-692M	-692M	-692M	-692M	-692M	-692M	-692M	-807.2M	-927M	-927M
Accumulated OCI	-238.4M	-118.7M	-98.6M	-122.4M	-109.7M	-107M	-100.2M	-128.5M	-118M	-142M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	498.1M	449.7M	341.7M	559.1M	635.6M	610.9M	743M	917M	1.09B	1.23B
Operating CF Margin %	0.3%	0.29%	0.19%	0.28%	0.32%	0.34%	0.36%	0.33%	0.33%	0.34%
Operating CF Growth %	0.06%	-0.1%	-0.24%	0.64%	0.14%	-0.04%	0.22%	0.23%	0.18%	0.13%
Net Income	111.3M	-19.7M	160.3M	69.1M	47.5M	73.7M	224M	330M	347M	211M
Depreciation & Amortization	420.9M	395.3M	430.4M	444.8M	470.1M	466.4M	488M	631M	755M	806M
Stock-Based Compensation	2.7M	5.5M	10.1M	13.4M	19.5M	16.4M	23M	27M	18M	0
Deferred Taxes	22.3M	12.3M	-228.4M	-10.5M	10.7M	11.9M	53M	83M	89M	0
Other Non-Cash Items	-29.8M	94.1M	93.6M	54.5M	116.2M	60M	18M	25M	-24M	270M
Working Capital Changes	-29.3M	-37.8M	-124.3M	-12.2M	-28.4M	-17.5M	-63M	-179M	-99M	-62M
Change in Receivables	-102.1M	-59.2M	-131.6M	-29.9M	-38.3M	-24.6M	-92M	-172M	-98M	-62M
Change in Inventory	-11M	-20.3M	-2.1M	1.8M	0	0	0	0	0	0
Change in Payables	-5.2M	9.2M	-10M	-1.7M	-12.9M	-6.4M	23M	-23M	7M	2M
Cash from Investing+	-389.8M	-398.4M	-403M	-567M	-463.6M	-207.5M	-960M	-1.68B	-1.58B	-1.51B
Capital Expenditures	-676.9M	-516.1M	-576M	-849M	-638.4M	-344.1M	-594M	-1.17B	-1.32B	-1.05B
CapEx % of Revenue	0.4%	0.33%	0.33%	0.43%	0.32%	0.19%	0.29%	0.43%	0.4%	0.29%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	160.7M	117.7M	173M	282M	179M	157.7M	65M	1M	169M	137M
Cash from Financing+	-107.2M	-55M	77.5M	-4.2M	-167.1M	-406M	220M	785M	512M	299M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	-2.07B	0	0	0	0	-15M	-68M	-73M	-77M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	852.7M	-2.1B	-6.8M	-600K	-42M	4.6M	-4M	-19M	-19M	-9M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	-178.8M	-66.4M	-234.3M	-289.9M	-59.7M	225.4M	102M	-355M	-390M	16M
FCF Margin %	-0.11%	-0.04%	-0.13%	-0.15%	-0.03%	0.13%	0.05%	-0.13%	-0.12%	0%
FCF Growth %	0.05%	0.63%	-2.53%	-0.24%	0.79%	4.78%	-0.55%	-4.48%	-0.1%	1.04%
FCF per Share	-6.32	-2.35	-8.19	-10.03	-2.05	7.67	3.36	-11.75	-13.59	0.56
FCF Conversion (FCF/Net Income)	4.48x	-22.83x	2.13x	8.09x	13.38x	8.29x	3.32x	2.78x	3.13x	5.81x
Interest Paid	27.7M	70.7M	131.7M	129.3M	130.6M	92.4M	83M	114M	221M	258M
Taxes Paid	10.1M	2.9M	5.5M	13.4M	7.9M	5M	23M	22M	30M	12M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	5.54%	-1.5%	38.5%	12.76%	7.81%	10.63%	26.06%	31.65%	29.14%	15.81%
Return on Invested Capital (ROIC)	4.15%	2.34%	3.03%	5.68%	6.35%	6.99%	10.85%	12.14%	11.23%	10.82%
Gross Margin	23.91%	22.6%	24.23%	26.41%	27.13%	29.56%	36.47%	38.87%	37.26%	37.84%
Net Margin	6.63%	-1.27%	9.14%	3.5%	2.38%	4.14%	10.81%	12.04%	10.57%	5.91%
Debt / Equity	0.06x	6.81x	4.46x	3.97x	3.74x	2.76x	2.53x	3.26x	3.52x	3.63x
Interest Coverage	4.22x	0.91x	0.83x	1.60x	2.06x	2.91x	5.19x	5.36x	3.46x	3.35x
FCF Conversion	4.48x	-22.83x	2.13x	8.09x	13.38x	8.29x	3.32x	2.78x	3.13x	5.81x
Revenue Growth	-5.21%	-7.35%	12.84%	12.66%	1.13%	-10.89%	16.38%	32.18%	19.78%	8.71%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Equipment Rental	1.52B	-	-	1.66B	1.7B	1.54B	1.91B	2.55B	2.87B	3.19B
Equipment Rental Growth	-	-	-	-	2.62%	-9.29%	23.75%	33.56%	12.48%	11.11%
Other Rental Revenue	-	-	-	-	-	-	-	-	293M	327M
Other Rental Revenue Growth	-	-	-	-	-	-	-	-	-	11.60%
Sales of Revenue Earning Equipment	-	-	-	256.2M	242.8M	198.5M	113.1M	125.7M	346M	311M
Sales of Revenue Earning Equipment Growth	-	-	-	-	-5.23%	-18.25%	-43.02%	11.14%	175.26%	-10.12%
New Equipment, Parts and Supplies	-	-	-	49.3M	44M	28.2M	30.1M	35.8M	38M	37M
New Equipment, Parts and Supplies Growth	-	-	-	-	-10.75%	-35.91%	6.74%	18.94%	6.15%	-2.63%
Service and Other Revenue	-	-	-	12.9M	10.4M	10.9M	19.5M	25.8M	28M	31M
Service and Other Revenue Growth	-	-	-	-	-19.38%	4.81%	78.90%	32.31%	8.53%	10.71%
U.S. Car Rental	6.29B	-	-	-	-	-	-	-	-	-
U.S. Car Rental Growth	-	-	-	-	-	-	-	-	-	-
International Car Rental	2.15B	-	-	-	-	-	-	-	-	-
International Car Rental Growth	-	-	-	-	-	-	-	-	-	-
Others	583M	-	-	-	-	-	-	-	-	-
Others Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
UNITED STATES	8.07B	-	-	-	1.8B	1.62B	1.91B	2.5B	3.02B	3.31B
UNITED STATES Growth	-	-	-	-	-	-9.58%	17.38%	31.04%	20.83%	9.77%
Non-US	-	193.6M	206.4M	-	202.4M	156.9M	166.4M	240.2M	263M	254M
Non-US Growth	-	-	6.61%	-	-	-22.48%	6.05%	44.35%	9.49%	-3.42%
Outside United States	2.47B	-	-	-	-	-	-	-	-	-
Outside United States Growth	-	-	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Herc Holdings Inc. (HRI) has a price-to-earnings (P/E) ratio of 21.5x. This is roughly in line with market averages.

Growth & Financials

Herc Holdings Inc. (HRI) reported $4.12B in revenue for fiscal year 2024. This represents a 50% decrease from $8.30B in 2011.

Herc Holdings Inc. (HRI) grew revenue by 8.7% over the past year. This is steady growth.

Herc Holdings Inc. (HRI) reported a net loss of $69.0M for fiscal year 2024.

Dividend & Returns

Yes, Herc Holdings Inc. (HRI) pays a dividend with a yield of 1.70%. This makes it attractive for income-focused investors.

Herc Holdings Inc. (HRI) has a return on equity (ROE) of 15.8%. This is reasonable for most industries.

Herc Holdings Inc. (HRI) had negative free cash flow of $186.0M in fiscal year 2024, likely due to heavy capital investments.

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