Herc Holdings Profit Margin vs. Price To Earning
| HRI Stock | USD 232.00 2.25 0.98% |
Herc Holdings Net Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.21 | 0.202 |
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For Herc Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Herc Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Herc Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Herc Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Herc Holdings over time as well as its relative position and ranking within its peers.
Herc |
Herc Holdings' Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Trading Companies & Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Herc Holdings. If investors know Herc will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Herc Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.081 | Dividend Share 2.628 | Earnings Share 12.23 | Revenue Per Share 121.337 | Quarterly Revenue Growth 0.063 |
The market value of Herc Holdings is measured differently than its book value, which is the value of Herc that is recorded on the company's balance sheet. Investors also form their own opinion of Herc Holdings' value that differs from its market value or its book value, called intrinsic value, which is Herc Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Herc Holdings' market value can be influenced by many factors that don't directly affect Herc Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Herc Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Herc Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Herc Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Herc Holdings Price To Earning vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Herc Holdings's current stock value. Our valuation model uses many indicators to compare Herc Holdings value to that of its competitors to determine the firm's financial worth. Herc Holdings is rated below average in profit margin category among its peers. It is rated # 4 in price to earning category among its peers reporting about 339.44 of Price To Earning per Profit Margin. As of now, Herc Holdings' Net Profit Margin is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Herc Holdings' earnings, one of the primary drivers of an investment's value.Herc Holdings' Earnings Breakdown by Geography
Herc Price To Earning vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Herc Holdings |
| = | 0.10 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Herc Holdings |
| = | 34.25 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Herc Price To Earning Comparison
Herc Holdings is currently under evaluation in price to earning category among its peers.
Herc Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Herc Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Herc Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Herc Holdings' change in net profit over the period of time. It can combine multiple indicators of Herc Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -118 M | -112.1 M | |
| Operating Income | 663 M | 629.9 M | |
| Income Before Tax | 447 M | 469.4 M | |
| Total Other Income Expense Net | -216 M | -226.8 M | |
| Net Income | 347 M | 364.4 M | |
| Income Tax Expense | 100 M | 105 M | |
| Net Income From Continuing Ops | 353.9 M | 202.5 M | |
| Non Operating Income Net Other | -180 K | -171 K | |
| Net Income Applicable To Common Shares | 379.4 M | 398.4 M | |
| Interest Income | 140.3 M | 118.8 M | |
| Net Interest Income | -203 M | -213.2 M | |
| Change To Netincome | 119.3 M | 75.6 M | |
| Net Income Per Share | 12.18 | 12.78 | |
| Income Quality | 3.13 | 3.29 | |
| Net Income Per E B T | 0.78 | 1.23 |
Herc Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Herc Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Herc Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Herc Holdings' important profitability drivers and their relationship over time.
Use Herc Holdings in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Herc Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Herc Holdings will appreciate offsetting losses from the drop in the long position's value.Herc Holdings Pair Trading
Herc Holdings Pair Trading Analysis
The ability to find closely correlated positions to Herc Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Herc Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Herc Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Herc Holdings to buy it.
The correlation of Herc Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Herc Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Herc Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Herc Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Herc Holdings position
In addition to having Herc Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Risk vs Return Analysis. For more detail on how to invest in Herc Stock please use our How to Invest in Herc Holdings guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project Herc Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Herc Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Herc Holdings' income statement, its balance sheet, and the statement of cash flows.