📊 HRI Key Takeaways
Is HRI a Good Investment? Thesis Analysis
Despite 407.7% revenue growth, net profitability collapsed 99.5% YoY to $1M with zero operating/net margins, indicating acquisition integration issues or hidden charges. Critically high leverage (4.12x D/E) with $8B debt and zero interest coverage creates substantial refinancing and solvency risk that cannot be sustained.
Why Buy HRI? Key Strengths
- Strong free cash flow generation ($928M) with 21.2% FCF margin demonstrates underlying operational cash generation despite accounting losses
- Market consolidation through Heritage acquisition positions HERC as equipment rental industry leader with revenue scale of $4.4B
- Operating cash flow of $1.1B exceeds capital requirements, suggesting capital-intensive business model with significant depreciation masking profitability
HRI Investment Risks to Consider
- Unsustainable leverage structure: 4.12x D/E with $8B long-term debt cannot be serviced; zero interest coverage indicates operating income insufficient for debt obligations
- Profitability collapse suggests failed acquisition integration or permanent margin deterioration; company earning only $1M on $4.4B revenue (0.02% net margin)
- Critical liquidity concern with only $52M cash versus $8B debt; refinancing risk extremely high if cash flow deteriorates or credit markets tighten
- Acquisition-driven growth likely masks deteriorating underlying margins; 407.7% revenue growth with negative earnings growth is value-destructive
Key Metrics to Watch
- Operating margin expansion and path to profitability post-integration
- Debt service coverage ratio and covenant compliance on debt facilities
- Organic revenue growth excluding acquisition and maintenance of 21%+ FCF margin
- Cash position and refinancing activities for $8B debt load maturing profile
HRI Financial Metrics
💡 AI Analyst Insight
The 21.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
HRI Profitability Ratios
HRI vs Default Sector
How HERC HOLDINGS INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HRI Overvalued or Undervalued?
Based on fundamental analysis, HERC HOLDINGS INC shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
HRI Balance Sheet & Liquidity
HRI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: HERC HOLDINGS INC's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $12.09 reflects profitable operations.
HRI Growth Metrics (YoY)
HRI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $157.0M | -$18.0M | $-0.75 |
| Q2 2025 | $136.0M | -$18.0M | $-1.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HRI Capital Allocation
HRI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for HERC HOLDINGS INC (CIK: 0001364479)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HRI
What is the AI rating for HRI?
HERC HOLDINGS INC (HRI) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HRI's key strengths?
Claude: Strong free cash flow generation ($928M) with 21.2% FCF margin demonstrates underlying operational cash generation despite accounting losses. Market consolidation through Heritage acquisition positions HERC as equipment rental industry leader with revenue scale of $4.4B.
What are the risks of investing in HRI?
Claude: Unsustainable leverage structure: 4.12x D/E with $8B long-term debt cannot be serviced; zero interest coverage indicates operating income insufficient for debt obligations. Profitability collapse suggests failed acquisition integration or permanent margin deterioration; company earning only $1M on $4.4B revenue (0.02% net margin).
What is HRI's revenue and growth?
HERC HOLDINGS INC reported revenue of $4.4B.
Does HRI pay dividends?
HERC HOLDINGS INC pays dividends, with $87.0M distributed to shareholders in the trailing twelve months.
Where can I find HRI SEC filings?
Official SEC filings for HERC HOLDINGS INC (CIK: 0001364479) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HRI's EPS?
HERC HOLDINGS INC has a diluted EPS of $0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HRI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, HERC HOLDINGS INC has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HRI stock overvalued or undervalued?
Valuation metrics for HRI: ROE of 0.1% (sector avg: 15%), net margin of 0.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HRI stock in 2026?
Our dual AI analysis gives HERC HOLDINGS INC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HRI's free cash flow?
HERC HOLDINGS INC's operating cash flow is $1.1B, with capital expenditures of $157.0M. FCF margin is 21.2%.
How does HRI compare to other Default stocks?
Vs Default sector averages: Net margin 0.0% (avg: 12%), ROE 0.1% (avg: 15%), current ratio 1.31 (avg: 1.8).