Herc HoldingsHRI +2.80%86 Return-on-Tangible-Asset is -1.05% as of Mar. 2026. GuruFocus rates HRI with a GF Score™ of 86/100 and a GF Value™ of $168.88 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,095 Business Services companies, Herc Holdings ranks worse than 72.33% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Herc Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $-96 Mil. Herc Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was $9,157 Mil. Therefore, Herc Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was -1.05%.
The historical rank and industry rank for Herc Holdings's Return-on-Tangible-Asset or its related term are showing as below:
HRI'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -0.65 Med: 2.77 Max: 7.35
Current: -0.06
During the past 13 years, Herc Holdings's highest Return-on-Tangible-Asset was 7.35%. The lowest was -0.65%. And the median was 2.77%.
HRI's Return-on-Tangible-Asset is ranked worse than 72.33% of 1095
companies
in the Business Services industry
Industry Median: 3.87
vs HRI: -0.06
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Herc Holdings Return-on-Tangible-Asset Related Terms
Herc Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Herc Holdings's Return-on-Tangible-Asset 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 EQPT, WSC, CAR: Return-on-Tangible-Asset Comparison
For the Rental & Leasing Services subindustry, Herc Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Business Services Industry
For the Business Services industry and Industrials sector, Herc Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Herc Holdings's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of -1.05% mean?
Herc Holdings (HRI) has a Return-on-Tangible-Asset of -1.05% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Herc Holdings and its competitors. According to the industry distribution chart, Herc Holdings ranks #792 out of 1095 companies in the Business Services industry, placing it in the top 72.3%.
Is Herc Holdings' Return-on-Tangible-Asset too high?
Herc Holdings' current Return-on-Tangible-Asset is -1.05%. Based on the distribution chart, Herc Holdings ranks #792 out of 1095 companies in the Business Services industry, which is below the industry midpoint. 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' Return-on-Tangible-Asset compare to EQPT and WSC?
According to the Business Services industry distribution chart, Herc Holdings ranks #792 out of 1095 companies for Return-on-Tangible-Asset. This places Herc Holdings in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.87. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Business Services company?
The median Return-on-Tangible-Asset among Business Services companies is 3.87, based on 1,095 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Herc Holdings and its competitors. For the Business Services industry, the median Return-on-Tangible-Asset is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herc Holdings's current Return-on-Tangible-Asset is -1.05%. 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 $168.88, compared to a current price of $148.91 — trading 11.8% below its estimated fair value. The current Return-on-Tangible-Asset is -1.05%. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Herc Holdings (HRI), the current Return-on-Tangible-Asset is -1.05% 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 $148.91 is trading 11.8% below its estimated GF Value™ of $168.88.
GuruFocus considers Herc Holdings to be Modestly Undervalued.
Key valuation signals for HRI:
Return-on-Tangible-Asset: -1.05%
GF Value™: $168.88 vs. price of $148.91 (11.8% below fair value)
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
Get the complete analysis for HRI
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HRI has been successfully added to your 
