Non-residential construction spending trends - drives core rental demand across commercial, infrastructure, and industrial end markets
Fleet utilization rates and rental rate pricing - directly impacts EBITDA margins and return on invested capital
Used equipment pricing and residual values - affects fleet rotation economics and disposal gains/losses
Capital allocation decisions - balance between fleet growth capex, M&A, debt paydown, and potential shareholder returns
high - Equipment rental demand is highly correlated with non-residential construction activity, infrastructure spending, and industrial production. During economic expansions, construction projects accelerate, driving equipment utilization and pricing power. Recessions cause project delays/cancellations, leading to rapid utilization declines. The 22.6% revenue growth suggests strong current cycle positioning, but the -99.5% net income decline indicates potential one-time charges or margin compression issues requiring investigation.
Moderate negative sensitivity to rising rates. Herc carries $3.7B in debt (0.76x D/E ratio), so higher rates increase interest expense and reduce profitability. More importantly, rising rates can slow construction activity by increasing project financing costs for customers, particularly in commercial real estate development. However, infrastructure spending (supported by government programs) provides some insulation from rate-driven demand weakness. The company's ability to pass through costs via rental rate increases partially offsets financing headwinds.
Cyclical construction market exposure - non-residential construction is inherently volatile, with multi-year boom/bust cycles that can cause 20-30% revenue swings
Equipment technology evolution - electrification of construction equipment and telematics integration require ongoing fleet investment to maintain competitiveness
Consolidation pressure - United Rentals' scale advantages (3x larger) create competitive challenges in procurement, technology investment, and national account pricing
value/cyclical - The stock attracts investors seeking exposure to US construction cycle recovery and infrastructure spending tailwinds. The 1.1x P/S and 5.8x EV/EBITDA valuations suggest value orientation, while 22.6% revenue growth appeals to cyclical growth investors. The -20% one-year return followed by 22.6% three-month recovery indicates volatility and potential turnaround interest. Negative free cash flow and near-zero margins suggest the company is in investment/growth mode or facing operational challenges, attracting investors betting on normalization.
Trend
+21.2% vs SMA 50 · +4.1% vs SMA 200
Momentum
Accumulation pattern present — more buying days than selling over the past 20 sessions. Volume conditions support gradual price improvement.
Based on volume distribution analysis. Direct short interest data (short float %, days to cover) is not available in current data sources.
ANALYST ESTIMATES
Analyst consensus estimates · Actuals replace estimates as reported
| Year | Revenue Est. | Rev Gth | EPS Est. | EPS Gth | Range | Analysts |
|---|---|---|---|---|---|---|
FY2023 | $3.4B $3.3B–$3.5B | — | $11.98 | — | ±3% | Moderate4 |
FY2024 | $3.5B $3.4B–$3.6B | ▲ +4.2% | $13.30 | ▲ +11.1% | ±0% | High6 |
FY2025 | $4.4B $4.3B–$4.5B | ▲ +24.9% | $7.28 | ▼ -45.2% | ±3% | High6 |
Dividend per payment — last 8 periods
INSTITUTIONAL OWNERSHIP
HRI News
About
herc rentals is a premier, full-service equipment-rental firm, providing our customers the equipment and services they need to achieve optimal performance. with more than 50 years of equipment-rental expertise, approximately 4,800 employees; approximately 270 company-operated locations, principally in the u.s. and canada, herc rentals is one of the leading equipment rental companies in north america. the company serves the construction and industrial segments and also provides solutions to government entities, railroads and infrastructure, and for remediation, emergency response, entertainment and events, and facilities and maintenance.
| Symbol | Price | Day % | Mkt Cap↓ | P/E | Rev Grw | Margin | ELO |
|---|---|---|---|---|---|---|---|
HRI◀ | $138.20 | -1.48% | $4.6B | — | +2264.6% | 2.3% | 1500 |
| $888.31 | -3.47% | $409.2B | 43.7 | +429.0% | 1312.8% | 1523 | |
| $281.53 | -3.43% | $294.2B | 33.7 | +1848.2% | 1898.2% | 1489 | |
| $171.18 | -2.56% | $230.5B | 31.8 | +974.1% | 759.8% | 1488 | |
| $220.49 | -3.80% | $173.8B | 79.6 | +3449.4% | 249.7% | 1503 | |
| $270.56 | +0.45% | $160.6B | 22.2 | +107.2% | 2912.3% | 1504 | |
| $399.44 | -2.12% | $155.1B | 38.9 | +1033.0% | 1489.7% | 1504 | |
| Sector avg | — | -2.35% | — | 41.7 | +1443.7% | 1232.1% | 1502 |