HERC HOLDINGS INC
$165.39
−1.11 (−0.67%) · delayed · Nov 13, 2026
Five-year price
52w $88.45 to $188.35
- Market cap
- $5.5B
- Enterprise value
- $13.5B
- P/E
- 5513.0×
- 25.4× on 3y avg EPS
- EV / EBIT
- —
- FCF yield
- 16.8%
- ROIC
- —
- Debt / equity
- 4.12
- Piotroski F
- 3/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
50
- –ROIC > 12% (5y avg)5y avg ROIC n/a
- ●ROE > 15% (5y avg)5y avg ROE 19.0%
- –Stable operating marginsMargin volatility n/a (σ, 5y)
- ●Earnings convert to cashFCF / net income 18826% (5y avg)
- ○Growing revenueRevenue CAGR 5y -13.5%
- ○Shrinking share countDiluted shares 6.8% over 5y
Value
50
- ○P/E below 15P/E 5513.0
- –EV/EBIT below 12EV/EBIT n/a
- ●FCF yield above 6%FCF yield 16.8%
- ○Price below Graham NumberGraham Number $6.27
- ●P/B below 3P/B 2.8
Safety
0
- ○Debt / equity below 0.5D/E 4.12
- ○Debt payable in < 4 yrs of earningsNet debt $8.0B
- –Interest coverage > 8xCoverage n/ax
- ○Current ratio > 1.5Current ratio 1.31
- ○Piotroski F-score ≥ 6F-score 3/9
Graham Defensive
14
- ○Adequate size (revenue > $2B)Revenue $0.9B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.31
- ○Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 168%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 25.4
- ○P/E × P/B ≤ 22.5Product 72.2
Valuation lab
What do you have to believe?
At $165.39, the market is pricing in about 1.4% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $8.0B · 33M shares · 5y revenue CAGR −13.5%
Intrinsic value
$13.05
Price
$165.39
Premium paid
1168%
What the price implies
The market is paying for 1.4% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
44% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,555 | 1,755 | 1,977 | 1,999 | 1,781 | 2,073 | 2,740 | 600 | 592 | 862 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | — | — | — | — | — | — | — | — | — | — |
| Operating margin | — | — | — | — | — | — | — | — | — | — |
| Pre-tax income | (5) | (64) | 69 | 64 | 94 | 291 | 434 | 447 | 291 | 1 |
| Income tax | 15 | (225) | (0) | 16 | 20 | 67 | 104 | 100 | 80 | 0 |
| Net income | (20) | 160 | 69 | 48 | 74 | 224 | 330 | 347 | 211 | 1 |
| EPS (diluted) | -0.70 | 5.60 | 2.39 | 1.63 | 2.51 | 7.37 | 10.92 | 12.09 | 7.40 | 0.03 |
| Diluted shares | 28 | 29 | 29 | 29 | 29 | 30 | 30 | 29 | 29 | 31 |
Who owns it