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Global Big Money Report

Herc Holdings Inc.

Oct 19, 2022

HRI:NYSE
Investment Type
Mid - Cap
Risk Level
Action
Rec. Price ($)

Section 1: Company Overview and Fundamentals 

1.1 Company Overview: 

Herc Holdings Inc. (NYSE: HRI) is a leading equipment rental supplier with approximately 350 locations in North America. The company operates through its Herc Rentals Inc. subsidiary. It offers a broad portfolio of equipment for rent including aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting.

1.2 The Key Positives, Negatives, Investment Highlights and Risks 

 1.3 Top 10 Shareholders: The top 10 shareholders have been highlighted in the chart below, which together forms ~56.88% of the total shareholding. 

1.4 Key Metrics: 

The company is benefitting from tight equipment inventory and is hopeful that it is better placed to drive sustained growth in 2023 driven by the commencement of new infrastructure projects. The company has posted a decent uptick in EBITDA margin to reach 43.1% in 2QFY22 from 40.8% in 2QFY21. The company’s current ratio improved to 1.07x in 2QFY22 from 0.97x in 2QFY21. Further, the company reported a healthy improvement in ROE to reach 7.0% in 2QFY22 from 5.8% in 2QFY21. 

Section 2: Business Updates and Financial Highlights 

2.1 Recent Updates: 

2.2 Insights of 2QFY22: 


Section 3: Key Risks and Outlook: 


Section 4: Stock Recommendation Summary: 

4.1 Price Performance and Technical Summary: 

4.2 Fundamental Valuation 

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation (Illustrative) 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 18, 2022. The reference data in this report has been partly sourced from REFINITIV. 

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Technical Indicators Defined: - 

Support:A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.  

Resistance:A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.  

Stop-loss:It is a level to protect further losses in case of unfavourable movement in the stock prices.


Disclaimer-

Kalkine Equities LLC provides general information about companies and their securities. The information contained in the reports, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.

Kalkine Media LLC, an affiliate of Kalkine Equities LLC, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.