Latest Ratios: P/E Ratio 4726.9x · EV/EBITDA 9.2x · ROE 0.1%. (2006–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.1B | $4.7B | $5.4B | $4.3B | $4.0B | $4.8B | $2.0B | $1.4B | $751M | $1.8B | $1.1B |
| Enterprise Value | $16.2B | $15.8B | $10.4B | $8.7B | $7.5B | $7.2B | $4.0B | $3.8B | $3.0B | $4.0B | $3.3B |
| P/E Ratio → | 4726.88 | 4636.88 | 25.59 | 12.32 | 12.05 | 21.24 | 26.46 | 30.02 | 10.87 | 11.18 | — |
| P/S Ratio | 1.15 | 1.06 | 1.51 | 1.30 | 1.45 | 2.30 | 1.10 | 0.71 | 0.38 | 1.02 | 0.73 |
| P/B Ratio | 2.44 | 2.39 | 3.87 | 3.36 | 3.58 | 4.87 | 2.63 | 2.21 | 1.31 | 3.51 | 3.53 |
| P/FCF | — | — | 337.24 | — | — | 46.66 | 8.66 | — | — | — | — |
| P/OCF | 4.51 | 4.16 | 4.40 | 3.93 | 4.33 | 6.41 | 3.20 | 2.24 | 1.34 | 5.24 | 2.53 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.60 | 2.91 | 2.65 | 2.75 | 3.47 | 2.23 | 1.90 | 1.52 | 2.29 | 2.13 |
| EV / EBITDA | 9.23 | 9.01 | 10.42 | 9.79 | 10.06 | 13.99 | 11.96 | 12.33 | 11.19 | 25.54 | 27.27 |
| EV / EBIT | 24.12 | 23.54 | 13.98 | 13.09 | 13.48 | 19.03 | 19.19 | 15.37 | 14.24 | 37.93 | 43.16 |
| EV / FCF | — | — | 649.06 | — | — | 70.52 | 17.60 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.2% | 28.2% | 37.8% | 37.3% | 38.9% | 36.5% | 29.6% | 27.1% | 26.4% | 24.2% | 22.6% |
| Operating Margin | 15.3% | 15.3% | 24.4% | 23.6% | 23.9% | 21.5% | 15.1% | 12.4% | 10.7% | 6.0% | 4.9% |
| Net Profit Margin | 0.0% | 0.0% | 5.9% | 10.6% | 12.0% | 10.8% | 4.1% | 2.4% | 3.5% | 9.1% | -1.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 0.1% | 0.1% | 15.8% | 29.1% | 31.6% | 26.1% | 10.6% | 7.8% | 12.8% | 38.5% | -1.5% |
| ROA | 0.0% | 0.0% | 2.8% | 5.3% | 6.3% | 5.5% | 2.0% | 1.3% | 1.9% | 4.6% | -0.6% |
| ROIC | 5.2% | 5.2% | 10.8% | 11.2% | 12.1% | 10.8% | 7.0% | 6.4% | 5.7% | 3.0% | 2.3% |
| ROCE | 6.6% | 6.6% | 12.5% | 13.0% | 14.0% | 12.4% | 8.0% | 7.3% | 6.4% | 3.3% | 2.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 5.73 | 5.73 | 3.63 | 3.52 | 3.26 | 2.53 | 2.76 | 3.74 | 3.97 | 4.46 | 6.81 |
| Debt / EBITDA | 6.38 | 6.38 | 5.09 | 5.05 | 4.83 | 4.80 | 6.17 | 7.82 | 8.49 | 14.44 | 18.03 |
| Net Debt / Equity | — | 5.70 | 3.57 | 3.46 | 3.21 | 2.49 | 2.72 | 3.69 | 3.93 | 4.38 | 6.77 |
| Net Debt / EBITDA | 6.35 | 6.35 | 5.00 | 4.97 | 4.76 | 4.73 | 6.07 | 7.71 | 8.39 | 14.17 | 17.94 |
| Debt / FCF | — | — | 311.81 | — | — | 23.86 | 8.94 | — | — | — | — |
| Interest Coverage | 1.61 | 1.61 | 2.86 | 2.96 | 4.58 | 4.40 | 2.23 | 2.06 | 1.60 | 0.83 | 0.91 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.31 | 1.31 | 1.38 | 1.44 | 1.07 | 0.89 | 1.12 | 1.24 | 1.34 | 1.63 | 1.53 |
| Quick Ratio | 1.31 | 1.31 | 1.38 | 1.44 | 1.07 | 0.89 | 1.12 | 1.24 | 1.28 | 1.55 | 1.43 |
| Cash Ratio | 0.07 | 0.07 | 0.15 | 0.14 | 0.09 | 0.07 | 0.10 | 0.10 | 0.09 | 0.14 | 0.05 |
| Asset Turnover | — | 0.32 | 0.45 | 0.46 | 0.46 | 0.46 | 0.50 | 0.52 | 0.55 | 0.49 | 0.45 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 81.27 | 56.09 | 49.93 |
| Days Sales Outstanding | — | 64.14 | 60.25 | 62.61 | 69.60 | 68.33 | 61.72 | 56.00 | 61.38 | 80.36 | 68.85 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 1.9% | 1.4% | 1.7% | 1.7% | 0.3% | — | — | — | — | 100.0% |
| Payout Ratio | 8700.0% | 8700.0% | 36.5% | 21.0% | 20.6% | 6.7% | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.0% | 0.0% | 3.9% | 8.1% | 8.3% | 4.7% | 3.8% | 3.3% | 9.2% | 8.9% | — |
| FCF Yield | — | — | 0.3% | — | — | 2.1% | 11.5% | — | — | — | — |
| Buyback Yield | 0.2% | 0.2% | 0.0% | 2.8% | 2.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.0% | 2.0% | 1.4% | 4.5% | 4.6% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 100.0% |
| Shares Outstanding | — | $31M | $29M | $29M | $30M | $30M | $29M | $29M | $29M | $29M | $28M |
High leverage and margin compression
According to recent market data, HRI trades at a forward P/E of 25.17, which appears to price in significant future earnings recovery despite the company's reported TTM P/E of 4726.88, suggesting that investors are heavily discounting current bottom-line weakness in favor of anticipated operational margin expansion.
The extreme disparity between trailing and forward multiples indicates that the market is looking past current net margin compression to a potential normalization of earnings. However, given the company's sensitivity to interest rates and cyclical construction demand, this valuation assumes a level of execution stability that has not yet been consistently demonstrated in recent quarterly results.
Based on reported financial figures, HRI's ROIC has remained suppressed, hovering near 1.1% to 1.3% in recent quarters, which suggests that the company is struggling to generate returns on invested capital that exceed its cost of debt in the current high-interest-rate environment.
The persistent low ROIC reflects the heavy capital intensity required to maintain a competitive fleet, where depreciation and interest expenses consistently erode the returns generated by rental operations. Investors should monitor whether the shift toward higher-margin specialty equipment can eventually drive ROIC toward peer-level performance or if structural fleet costs will continue to act as a drag on capital efficiency.
As reported in recent filings, HRI's asset turnover remains low at approximately 0.08 to 0.11, highlighting the significant capital base required to support revenue growth and the inherent difficulty in achieving rapid asset velocity within the heavy equipment rental industry compared to more service-oriented peers.
The stability of DSO around 60 days suggests that while the company maintains consistent collection cycles, it lacks the working capital flexibility to significantly improve its cash conversion cycle. This reliance on a massive, depreciating asset base means that any slowdown in rental demand could lead to a rapid deterioration in asset utilization and further pressure on operating margins.
According to quarterly balance sheet data, HRI's debt-to-equity ratio has climbed to 5.73, a level that appears increasingly precarious given the company's thin net margins and the ongoing need to finance fleet expansion through external borrowing rather than internal cash generation.
The rising leverage profile suggests that the company is becoming more sensitive to interest rate fluctuations, which may limit management's ability to pursue strategic acquisitions or fleet upgrades without further straining the balance sheet. The interest coverage ratio, which has shown volatility, warrants close monitoring as it indicates a narrowing margin of safety for debt service obligations.
Financial analysts frequently misapply the P/E ratio to HRI, as the metric is heavily distorted by non-cash depreciation charges and interest expenses that do not reflect the underlying cash-generating capacity of the rental fleet, making it a poor indicator of the company's true economic value.
Because HRI operates with a high fixed-cost structure and significant depreciation, the P/E ratio obscures the company's ability to generate free cash flow. A more appropriate metric for this business model would be EV/EBITDA or P/FCF, which better account for the capital-intensive nature of the fleet and the company's ability to manage its debt-laden capital structure.
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Quick answers to the most common questions about buying HRI stock.
Herc Holdings Inc.'s current P/E ratio is 4726.9x. The historical average is 16.1x. This places it at the 100th percentile of its historical range.
Herc Holdings Inc.'s current EV/EBITDA is 9.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.4x.
Herc Holdings Inc.'s return on equity (ROE) is 0.1%. The historical average is 8.0%.
Based on historical data, Herc Holdings Inc. is trading at a P/E of 4726.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Herc Holdings Inc.'s current dividend yield is 1.83% with a payout ratio of 8700.0%.
Herc Holdings Inc. has 28.2% gross margin and 15.3% operating margin. Operating margin between 10-20% is typical for established companies.
Herc Holdings Inc.'s Debt/EBITDA ratio is 6.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.