Herc Holdings (MEX:HRI) Operating Income: MXN11,005 Mil (TTM As of Mar. 2026)

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MEX:HRI Herc Holdings Inc MEX:HRI
86 GF Score
Price MXN1,863.25
GF Value MXN2,113.33
! 9 Warning Signs
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What is Herc Holdings Operating Income?

Herc Holdings MEX:HRI 86 Operating Income is MXN11,005 Mil as of Mar. 2026. GuruFocus rates MEX:HRI with a GF Score™ of 86/100 and a GF Value™ of MXN2,113.33. The stock has 9 warning signs investors should review.

Herc Holdings's Operating Income for the three months ended in Mar. 2026 was MXN1,929 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was MXN11,005 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Herc Holdings's Operating Income for the three months ended in Mar. 2026 was MXN1,929 Mil. Herc Holdings's Revenue for the three months ended in Mar. 2026 was MXN20,539 Mil. Therefore, Herc Holdings's Operating Margin % for the quarter that ended in Mar. 2026 was 9.39%.

Good Sign:

Herc Holdings Inc operating margin is expanding. Margin expansion is usually a good sign.

Herc Holdings's 5-Year average Growth Rate for Operating Margin % was 2.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Herc Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was 3.27%. Herc Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.96%.


Herc Holdings  (MEX:HRI) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Herc Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=7717.996 * ( 1 - 0% )/( (238017.348 + 234100.512)/ 2 )
=7717.996/236058.93
=3.27 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=248046.523 - 9092.879 - ( 936.296 - max(0, 13144.161 - 17213.449+936.296))
=238017.348

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=244595.543 - 9719.625 - ( 775.406 - max(0, 11324.536 - 16572.051+775.406))
=234100.512

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Herc Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=7573.736/( ( (148312.951 + max(4717.494, 0)) + (146299.295 + max(6077.019, 0)) )/ 2 )
=7573.736/( ( 153030.445 + 152376.314 )/ 2 )
=7573.736/152703.3795
=4.96 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(13846.383 + 0 + 2430.77) - (9092.879 + 504.16 + 1962.62)
=4717.494

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(13704.852 + 0 + 2091.793) - (9719.625 + 0 + 0.0010000000002037)
=6077.019

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Herc Holdings's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=1929.499/20539.245
=9.39 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Herc Holdings Operating Income Related Terms


Herc Holdings Operating Income Historical Data

* Premium members only.

The historical data trend for Herc Holdings's Operating Income 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.

Herc Holdings Operating Income Chart

Herc Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7,754.29 10,898.26 11,389.72 11,679.19 11,199.55

Herc Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,598.19 2,090.04 3,852.28 3,132.99 1,929.50
MEX:HRI
86GF Score
Herc Holdings Inc MEX:HRI
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Herc Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN11,005 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of MXN11,005 Mil mean?
Herc Holdings (MEX:HRI) has a Operating Income of MXN11,005 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Herc Holdings and its competitors.
Is Herc Holdings' Operating Income too high?
Herc Holdings' current Operating Income is MXN11,005 Mil. Overall, Herc Holdings has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Herc Holdings' Operating Income compare to EQPT and WSC?
Herc Holdings' Operating Income of MXN11,005 Mil can be compared against companies in the Business Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Business Services company?
A good Operating Income depends on the Business Services industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Herc Holdings and its competitors. Herc Holdings's current Operating Income is MXN11,005 Mil. 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?
Herc Holdings (MEX:HRI) has a current Operating Income of MXN11,005 Mil. The stock's GF Value™ is MXN2,113.33, compared to a current price of MXN1,863.25 — trading 11.8% below its estimated fair value. The current Operating Income is MXN11,005 Mil. 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 Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Herc Holdings (MEX:HRI), the current Operating Income is MXN11,005 Mil 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 (MEX:HRI) Overvalued in 2026?

Based on GuruFocus' analysis, Herc Holdings stock appears to be undervalued. The current stock price of MXN1,863.25 is trading 11.8% below its estimated GF Value™ of MXN2,113.33.

Key valuation signals for MEX:HRI:

  • Operating Income: MXN11,005 Mil
  • GF Value™: MXN2,113.33 vs. price of MXN1,863.25 (11.8% below fair value)
  • GF Score™: 86/100 with 9 warning signs

No single metric tells the full story. See the MEX:HRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Herc Holdings Business Description

Other Exchanges HRI:USA0J4L:UKH9B1:Germany
Address 27500 Riverview Center Boulevard, Bonita Springs, FL, USA, 34134
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

Get the complete analysis for MEX:HRI

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN1,863.25
Price
MXN2,113.33
GF Value