Herc HoldingsHRI -1.74%86 OCF Yield % is 23.72 as of Jun. 26, 2026, which is 17% below its 10-year median of 28.48. GuruFocus rates HRI with a GF Score™ of 86/100 and a GF Value™ of $168.69 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,088 Business Services companies, Herc Holdings ranks better than 84.65% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Herc Holdings OCF Yield % Related Terms
Herc Holdings OCF Yield % Historical Data
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The historical data trend for Herc Holdings's OCF Yield % 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 OCF Yield %, along with its competitors' market caps and OCF Yield % 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 OCF Yield % vs Business Services Industry
For the Business Services industry and Industrials sector, Herc Holdings's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Herc Holdings's OCF Yield % 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.
Herc Holdings (HRI) has a OCF Yield % of 23.72 as of Jun. 26, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Herc Holdings and its competitors. This is 17% below median its historical median of 28.48. Over the past decade, Herc Holdings' OCF Yield % has ranged from 11.54 to 159.43. According to the industry distribution chart, Herc Holdings ranks #167 out of 1088 companies in the Business Services industry, placing it in the top 15.3%.
Is Herc Holdings' OCF Yield % too high?
Herc Holdings' current OCF Yield % of 23.72 is 17% below median its 10-year median of 28.48. Over the past 10 years, this metric has ranged from a low of 11.54 to a high of 159.43. The Business Services industry median OCF Yield % is 7.44. Herc Holdings' value of 23.72 is 218.8% above this industry median. Based on the distribution chart, Herc Holdings ranks #167 out of 1088 companies in the Business Services industry, which is in the top quartile — a strong position 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' OCF Yield % compare to WSC and EQPT?
According to the Business Services industry distribution chart, Herc Holdings ranks #167 out of 1088 companies for OCF Yield %. This places Herc Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median OCF Yield % is 7.44. Herc Holdings' value of 23.72 is 218.8% above this benchmark. Historically, Herc Holdings' own OCF Yield % has ranged from 11.54 to 159.43 over the past decade. While the company's 10-year median is 28.48 vs. the industry median of 7.44, 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 OCF Yield % for a Business Services company?
The median OCF Yield % among Business Services companies is 7.44, based on 1,088 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Herc Holdings's current OCF Yield % of 23.72 is 218.8% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Herc Holdings and its competitors. For the Business Services industry, the median OCF Yield % is 7.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herc Holdings's current OCF Yield % is 23.72, which is 17% below median its own 10-year median of 28.48. 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 $168.69, compared to a current price of $150.35 — trading 10.9% below its estimated fair value. The current OCF Yield % is 23.72, which is 17% below median its 10-year median of 28.48 and 218.8% above the Business Services industry median of 7.44. 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 OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Herc Holdings (HRI), the current OCF Yield % is 23.72 as of Jun. 26, 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 $150.35 is trading 10.9% below its estimated GF Value™ of $168.69.
GuruFocus considers Herc Holdings to be Modestly Undervalued.
Key valuation signals for HRI:
OCF Yield %: 23.72 (17% below median its 10-year median of 28.48)
GF Value™: $168.69 vs. price of $150.35 (10.9% below fair value)
Industry Position: 218.8% above the Business Services median (#167 of 1088)
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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