HERTZ GLOBAL HOLDINGS, INC (HTZ) Stock Analysis
HERTZ GLOBAL HOLDINGS, INC (HTZ) Stock Analysis
Overall Grade: F (Concerning)
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HERTZ GLOBAL HOLDINGS, INC faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -11.1% | Below expectations |
| FCF Margin | 19.1% | Strong cash generation |
| Debt/Equity | -0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 19.1% provides financial flexibility for growth and shareholder returns.
What is HERTZ GLOBAL HOLDINGS, INC's Profitability and ROIC?
HERTZ GLOBAL HOLDINGS, INC's return on invested capital of -11.1% is below the typical cost of capital.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -11.1% | Red flag | Below cost of capital |
| Return on Equity (ROE) | 241.7% | Excellent | Efficient use of shareholder equity |
| Operating Margin | -9.8% | Warning | Moderate operational efficiency |
How Strong is HERTZ GLOBAL HOLDINGS, INC's Cash Flow Quality?
HERTZ GLOBAL HOLDINGS, INC generated $1.6B in free cash flow over the trailing twelve months, representing a 19.1% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 19.1% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $1.6B | Good | Positive cash generation |
| OCF/Net Income | -2.2x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is HERTZ GLOBAL HOLDINGS, INC's Financial Health?
HERTZ GLOBAL HOLDINGS, INC maintains a net cash position of $1.2B, providing significant financial flexibility.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | -0.0x | Excellent | Conservative capital structure |
| Net Cash Position | $1.2B | Excellent | Net cash positive |
Is HERTZ GLOBAL HOLDINGS, INC Stock Overvalued or Undervalued?
HERTZ GLOBAL HOLDINGS, INC trades at a P/E of -2.1x, representing a premium to the sector median of N/A. Free cash flow yield of 102.0% offers attractive cash returns.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | -2.1x | Red flag | Reasonable valuation |
| EV/Sales | 0.3x | Excellent | Attractive revenue multiple |
| FCF Yield | 102.0% | Excellent | Attractive cash return |
| Dividend Yield | 0.8% | Adequate | Growth focus over income |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -11.1% | Bottom 10% | -1.4x below |
| Free Cash Flow Margin | 19.1% | Top 10% | 3.6x above |
| Operating Margin | -9.8% | Bottom 10% | -1.2x below |
| Return on Equity (ROE) | 241.7% | Top 5% | 27.1x above |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -11.1% (Red flag)
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 19.1% (Good - Top 10% of sector (median: 5.4%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: -1.3% (Excellent)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: 102.0% (Excellent)
Frequently Asked Questions
Q: What is HERTZ GLOBAL HOLDINGS, INC's Return on Invested Capital (ROIC)?
HERTZ GLOBAL HOLDINGS, INC (HTZ) has a trailing twelve-month Return on Invested Capital (ROIC) of -11.1%. This compares below the sector median of 8.0%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is HERTZ GLOBAL HOLDINGS, INC's Free Cash Flow Margin?
HERTZ GLOBAL HOLDINGS, INC (HTZ) has a free cash flow margin of 19.1%, generating $1.6 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is HERTZ GLOBAL HOLDINGS, INC stock overvalued or undervalued?
HERTZ GLOBAL HOLDINGS, INC (HTZ) trades at a P/E ratio of -2.1x, which is above the sector median of N/A. The EV/Sales multiple is 0.3x. Free cash flow yield is 102.0%, which represents an attractive cash return to investors.
Q: Does HERTZ GLOBAL HOLDINGS, INC pay a dividend?
HERTZ GLOBAL HOLDINGS, INC (HTZ) currently pays a dividend yield of 0.8%. Including share buybacks, the total shareholder yield is 0.8%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is HERTZ GLOBAL HOLDINGS, INC's revenue and earnings growth?
HERTZ GLOBAL HOLDINGS, INC (HTZ) declined revenue by 6.0% year-over-year. Earnings per share increased by 72.0% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does HERTZ GLOBAL HOLDINGS, INC compare to competitors in Industrials?
Compared to other companies in Industrials, HERTZ GLOBAL HOLDINGS, INC (HTZ) shows: ROIC of -11.1% is below the sector median of 8.0% (-1.4x median). FCF margin of 19.1% exceeds the sector median of 5.4% (Top 6% of sector). These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with HERTZ GLOBAL HOLDINGS, INC?
HERTZ GLOBAL HOLDINGS, INC (HTZ) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.