Herc Holdings Inc. Common Stock (HRI)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I want durable earning power bought at a sensible price. Herc rents aerial and earthmoving equipment—necessary, but capital-intensive and competitive. The filed numbers are troubling. In FY2023, period ended 2023-12-31, net income was $347M and diluted EPS $12.09. In FY2024, period ended 2024-12-31, net income was $211M and EPS $7.40. In FY2025, period ended 2025-12-31, net income was $1M and EPS $0.03. In fiscal Q1 2026, quarter ended 2026-03-31, net loss was $24M and EPS -$0.72; in fiscal Q2 2026, quarter ended 2026-06-30, net income was $19M and EPS $0.57. That is not stable owner earnings. Financial health looks fragile: debt/equity is 5.06, Altman Z-Score is 0.40, and trailing free cash flow is -$128M, a -3.0% FCF yield. At the 2026-10-13 close of $128.70, FairStock calculations show P/E 75.71, P/B 2.27, ROE 2.58%, and ROCE 2.87%. Its Graham Number is $46.53, leaving a -176.6% margin of safety. EV/EBITDA of 7.49 and PEG of 0.49 may look cheap, but low-base profit flatters growth. The Lynch category is SLOW GROWER — Shrinking, with profit falling -57.7% a year over five years and revenue -13.5%. I see no clear moat; scale helps, but high leverage and negative cash flow dominate. Until earnings and cash generation recover consistently, this is not a value proposition.

In plain English: Herc rents construction and industrial equipment. Its reported yearly profit shrank sharply in the latest filings, and the company is using more cash than it generates. At the recent price, the stock looks expensive compared with its profits and net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer