Herc Holdings Inc. (HRI, Financial) (0.5%) (HRI – $163.46 – NYSE), based in Bonita Springs, Florida, is the third largest equipment rental companyin the United States. HRI was spun out of former parent Hertz on June 30, 2016. Underemphasized as part of a significantly larger car rental company, HRI has worked for the past three years to put its operating metrics in line with larger, better known peers such as United Rentals. The company is well positioned to generate considerable cash as the U.S. equipment rental market grows over the next several years. Additionally, management efforts to improve profitability metrics to more closely align with its larger peers could result in valuation multiple expansion.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund third-quarter 2021 commentary.
