Herc HoldingsHRI +6.82%86 Operating Margin % is 9.39% as of Mar. 2026, which is 30% below its 10-year median of 13.38. GuruFocus rates HRI with a GF Score™ of 86/100 and a GF Value™ of $168.69 (Fairly Valued). The stock has 9 warning signs investors should review. Among 1,070 Business Services companies, Herc Holdings ranks better than 73.46% on this metric.
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 $107 Mil. Herc Holdings's Revenue for the
three
months ended in Mar. 2026 was $1,139 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.
The historical rank and industry rank for Herc Holdings's Operating Margin % or its related term are showing as below:
HRI'
s Operating Margin % Range Over the Past 10 Years
Min: 4.89 Med: 13.38 Max: 20.44
Current: 13.07
HRI's Operating Margin % is ranked better than 73.46% of 1070
companies
in the Business Services industry
Industry Median: 6.33
vs HRI: 13.07
Herc Holdings's 5-Year Average Operating Margin % Growth Rate was 2.30% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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 Margin % Related Terms
Herc Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for Herc Holdings's Operating Margin % 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.
HRI vs WSC, EQPT, GATX: Operating Margin % Comparison
For the Rental & Leasing Services subindustry, Herc Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Herc Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Herc Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Herc Holdings's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 9.39% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Herc Holdings and its competitors. This is 30% below median its historical median of 13.38. Over the past decade, Herc Holdings' Operating Margin % has ranged from 4.89 to 20.44. According to the industry distribution chart, Herc Holdings ranks #284 out of 1070 companies in the Business Services industry, placing it in the top 26.5%.
Is Herc Holdings' Operating Margin % too high?
Herc Holdings' current Operating Margin % of 9.39% is 30% below median its 10-year median of 13.38. Over the past 10 years, this metric has ranged from a low of 4.89 to a high of 20.44. The Business Services industry median Operating Margin % is 6.33. Herc Holdings' value of 9.39% is 48.3% above this industry median. Based on the distribution chart, Herc Holdings ranks #284 out of 1070 companies in the Business Services industry, which is above the industry midpoint. Overall, Herc Holdings has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Herc Holdings' Operating Margin % compare to WSC and EQPT?
According to the Business Services industry distribution chart, Herc Holdings ranks #284 out of 1070 companies for Operating Margin %. This puts Herc Holdings in the upper half of its industry. The industry median Operating Margin % is 6.33. Herc Holdings' value of 9.39% is 48.3% above this benchmark. Historically, Herc Holdings' own Operating Margin % has ranged from 4.89 to 20.44 over the past decade. While the company's 10-year median is 13.38 vs. the industry median of 6.33, 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 Operating Margin % for a Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Herc Holdings's current Operating Margin % of 9.39% is 48.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Herc Holdings and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herc Holdings's current Operating Margin % is 9.39%, which is 30% below median its own 10-year median of 13.38. 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 Fairly Valued. The stock's GF Value™ is $168.69, compared to a current price of $153.00 — trading 9.3% below its estimated fair value. The current Operating Margin % is 9.39%, which is 30% below median its 10-year median of 13.38 and 48.3% above the Business Services industry median of 6.33. 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 Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Herc Holdings (HRI), the current Operating Margin % is 9.39% 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 $153.00 is trading 9.3% below its estimated GF Value™ of $168.69.
GuruFocus considers Herc Holdings to be Fairly Valued.
Key valuation signals for HRI:
Operating Margin %: 9.39% (30% below median its 10-year median of 13.38)
GF Value™: $168.69 vs. price of $153.00 (9.3% below fair value)
Industry Position: 48.3% above the Business Services median (#284 of 1070)
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%).
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