Herc Holdings Inc. (HRI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-258.7%

-$275.01

vs $173.24 price

Levered DCF

-$515.45

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.86

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	4,636.88×	25.48×	12.22×	11.8×	20.68×	26.25×	29.48×	10.7×
P/B	2.38×	3.85×	3.33×	3.51×	4.74×	2.6×	2.18×	1.29×
P/S	1.06×	1.51×	1.29×	1.42×	2.24×	1.08×	0.7×	0.37×
EV / EBITDA	10.52×	6.69×	6.1×	6.27×	8.16×	5.86×	5.27×	4.56×
Gross margin	28.2%	37.8%	37.3%	38.9%	36.5%	29.6%	27.1%	26.4%
Operating margin	15.3%	24.4%	23.6%	23.9%	21.5%	15.1%	12.4%	10.7%
Net margin	0.0%	5.9%	10.6%	12.0%	10.8%	4.1%	2.4%	3.5%
Current ratio	1.31×	1.38×	1.44×	1.07×	0.89×	1.12×	1.24×	1.34×
Debt / equity	5.73×	3.63×	3.52×	3.26×	2.53×	2.76×	3.74×	3.97×
Interest coverage	1.61×	3.35×	3.46×	5.36×	5.19×	2.91×	2.06×	1.6×
Dividend yield	1.9%	1.4%	1.7%	1.7%	0.3%	0.0%	0.0%	0.0%
Payout ratio	8700.0%	36.5%	21.0%	20.6%	6.7%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	0.1%	15.1%	27.3%	29.8%	22.9%	9.9%	7.4%	12.1%
Return on invested capital	5.1%	8.6%	9.1%	9.2%	8.6%	6.4%	5.2%	6.3%
Return on assets	0.0%	2.7%	4.9%	5.5%	5.0%	2.1%	1.2%	1.9%
Free cash flow yield	-2.9%	0.3%	-9.2%	-9.1%	2.2%	11.7%	-4.3%	-39.3%
Earnings yield	0.0%	3.9%	8.2%	8.5%	4.8%	3.8%	3.4%	9.4%
Enterprise value	$15.8B	$10.4B	$8.7B	$7.5B	$7.1B	$3.9B	$3.8B	$3B
Net debt / EBITDA	7.42×	3.22×	3.11×	2.99×	2.81×	2.99×	3.32×	3.43×
Cash conversion cycle (days)	25	19	25	0	-9	25	24	29