Hertz Global Holdings, headquartered in Estero, Florida, operates vehicle rentals through Hertz, Dollar, and Thrifty brands, employing 27,000 staff across 11,400 locations in 160 countries. The company went public on July 30, 2021.
Based on our analysis, Hertz Global Holdings (New) has received an undervalued rating of 5 out of 5 stars from Cashu. This rating is primarily driven by its key financial ratios, which highlight significant discrepancies when compared to industry averages.
The Price-to-Book (PB) Ratio for Hertz stands at 7.34, considerably higher than the sector average of 2.50. A high PB ratio can indicate that the company is overvalued relative to its book value; however, this could also suggest that investors are anticipating future growth and profitability that have not yet materialized.
The Net Profit Margin for Hertz is reported at -31.63%, compared to a sector average of 0.86%. This negative margin indicates that the company is currently facing operational challenges, resulting in losses instead of profits. While this is concerning, it may also present an opportunity for turnaround potential as the company restructures its operations.
Additionally, the Return on Equity (ROE) ratio is an alarming -1870.59%, in stark contrast to the sector average of 2.33%. This negative figure reflects the company’s inability to generate profit from its equity base, signaling significant inefficiencies.
Lastly, the Return on Assets (ROA) ratio is at -13.13%, compared to the sector's 0.47%. This suggests that Hertz is struggling to efficiently utilize its assets to generate earnings.
These factors collectively indicate that Hertz Global Holdings may be undervalued, especially if it can successfully address its operational challenges.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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