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Herc HoldingsHRI -2.40%86 Debt-to-EBITDA is 5.74 as of Mar. 2026, which is 59% above its 10-year median of 3.61. GuruFocus rates HRI with a GF Score™ of 86/100 and a GF Value™ of $168.98 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 836 Business Services companies, Herc Holdings ranks worse than 86.48% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Herc Holdings's Debt-to-EBITDA or its related term are showing as below:
HRI'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.85 Med: 3.61 Max: 6.47
Current: 5.82
During the past 13 years, the highest Debt-to-EBITDA Ratio of Herc Holdings was 6.47. The lowest was 2.85. And the median was 3.61.
HRI's Debt-to-EBITDA is ranked worse than 86.48% of 836
companies
in the Business Services industry
Industry Median: 1.63
vs HRI: 5.82
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Herc Holdings Debt-to-EBITDA Related Terms
Herc Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Herc Holdings's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Rental & Leasing Services subindustry, Herc Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Herc Holdings Debt-to-EBITDA vs Business Services Industry
For the Business Services industry and Industrials sector, Herc Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Herc Holdings's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Herc Holdings (HRI) has a Debt-to-EBITDA of 5.74 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Herc Holdings. This is 59% above median its historical median of 3.61. Over the past decade, Herc Holdings' Debt-to-EBITDA has ranged from 2.85 to 6.47. According to the industry distribution chart, Herc Holdings ranks #723 out of 836 companies in the Business Services industry, placing it in the top 86.5%.
Is Herc Holdings' Debt-to-EBITDA too high?
Herc Holdings' current Debt-to-EBITDA of 5.74 is 59% above median its 10-year median of 3.61. Over the past 10 years, this metric has ranged from a low of 2.85 to a high of 6.47. The Business Services industry median Debt-to-EBITDA is 1.63. Herc Holdings' value of 5.74 is 252.1% above this industry median. Based on the distribution chart, Herc Holdings ranks #723 out of 836 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Herc Holdings has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Herc Holdings' Debt-to-EBITDA compare to EQPT and WSC?
According to the Business Services industry distribution chart, Herc Holdings ranks #723 out of 836 companies for Debt-to-EBITDA. This places Herc Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 1.63. Herc Holdings' value of 5.74 is 252.1% above this benchmark. Historically, Herc Holdings' own Debt-to-EBITDA has ranged from 2.85 to 6.47 over the past decade. While the company's 10-year median is 3.61 vs. the industry median of 1.63, Herc Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Business Services company?
The median Debt-to-EBITDA among Business Services companies is 1.63, based on 836 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Herc Holdings's current Debt-to-EBITDA of 5.74 is 252.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Herc Holdings. For the Business Services industry, the median Debt-to-EBITDA is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herc Holdings's current Debt-to-EBITDA is 5.74, which is 59% above median its own 10-year median of 3.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Herc Holdings stock overvalued right now?
Based on GuruFocus' analysis, Herc Holdings (HRI) is currently considered Modestly Undervalued. The stock's GF Value™ is $168.98, compared to a current price of $149.47 — trading 11.5% below its estimated fair value. The current Debt-to-EBITDA is 5.74, which is 59% above median its 10-year median of 3.61 and 252.1% above the Business Services industry median of 1.63. Herc Holdings' overall GF Score™ is 86/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Herc Holdings (HRI), the current Debt-to-EBITDA is 5.74 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Herc Holdings (HRI) Overvalued in 2026?
Based on GuruFocus' analysis, Herc Holdings stock appears to be undervalued.
The current stock price of $149.47 is trading 11.5% below its estimated GF Value™ of $168.98.
GuruFocus considers Herc Holdings to be Modestly Undervalued.
Key valuation signals for HRI:
Debt-to-EBITDA: 5.74 (59% above median its 10-year median of 3.61)
GF Value™: $168.98 vs. price of $149.47 (11.5% below fair value)
Industry Position: 252.1% above the Business Services median (#723 of 836)
No single metric tells the full story. See the HRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Herc Holdings is an equipment rental company that was spun out of Hertz Global in 2016. It is currently the third-largest player in North America, after United Rentals and Sunbelt Rentals, with an approximate 6% market share pro forma for its 2025 acquisition of H&E Equipment Services. It serves a similar mix of companies to its peers (industrial, commercial, and residential construction) from its 450 locations targeting the top 100 metropolitan markets in the US. Herc's rental fleet of approximately $7 billion is also similar in composition to its peer group in terms of equipment offered. The company is also pursuing diversification by bundling and increasing specialty solutions for its customer base. Herc's portfolio skews toward local customers versus national accounts (60%/40%).
86GF Score
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