Herc HoldingsHRI -3.79%84 ROC (Joel Greenblatt) % is 4.96% as of Mar. 2026, which is 25% below its 10-year median of 6.63. GuruFocus rates HRI with a GF Score™ of 84/100 and a GF Value™ of $168.79 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,080 Business Services companies, Herc Holdings ranks worse than 69.81% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Herc Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.96%.
The historical rank and industry rank for Herc Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
HRI'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.29 Med: 6.63 Max: 14.15
Current: 5.88
During the past 13 years, Herc Holdings's highest ROC (Joel Greenblatt) % was 14.15%. The lowest was 2.29%. And the median was 6.63%.
HRI's ROC (Joel Greenblatt) % is ranked worse than 69.81% of 1080
companies
in the Business Services industry
Industry Median: 20.91
vs HRI: 5.88
Herc Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -2.60% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Herc Holdings ROC (Joel Greenblatt) % Related Terms
Herc Holdings ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Herc Holdings's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Rental & Leasing Services subindustry, Herc Holdings's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Business Services Industry
For the Business Services industry and Industrials sector, Herc Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Herc Holdings's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 4.96% mean?
Herc Holdings (HRI) has a ROC (Joel Greenblatt) % of 4.96% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Herc Holdings and its competitors. This is 25% below median its historical median of 6.63. Over the past decade, Herc Holdings' ROC (Joel Greenblatt) % has ranged from 2.29 to 14.15. According to the industry distribution chart, Herc Holdings ranks #754 out of 1080 companies in the Business Services industry, placing it in the top 69.8%.
Is Herc Holdings' ROC (Joel Greenblatt) % too high?
Herc Holdings' current ROC (Joel Greenblatt) % of 4.96% is 25% below median its 10-year median of 6.63. Over the past 10 years, this metric has ranged from a low of 2.29 to a high of 14.15. The Business Services industry median ROC (Joel Greenblatt) % is 20.91. Herc Holdings' value of 4.96% is 76.3% below this industry median. Based on the distribution chart, Herc Holdings ranks #754 out of 1080 companies in the Business Services industry, which is below the industry midpoint. Overall, Herc Holdings has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Herc Holdings' ROC (Joel Greenblatt) % compare to EQPT and WSC?
According to the Business Services industry distribution chart, Herc Holdings ranks #754 out of 1080 companies for ROC (Joel Greenblatt) %. This places Herc Holdings in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 20.91. Herc Holdings' value of 4.96% is 76.3% below this benchmark. Historically, Herc Holdings' own ROC (Joel Greenblatt) % has ranged from 2.29 to 14.15 over the past decade. While the company's 10-year median is 6.63 vs. the industry median of 20.91, Herc Holdings has consistently been below 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 ROC (Joel Greenblatt) % for a Business Services company?
The median ROC (Joel Greenblatt) % among Business Services companies is 20.91, based on 1,080 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Herc Holdings's current ROC (Joel Greenblatt) % of 4.96% is 76.3% below 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Herc Holdings and its competitors. For the Business Services industry, the median ROC (Joel Greenblatt) % is 20.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herc Holdings's current ROC (Joel Greenblatt) % is 4.96%, which is 25% below median its own 10-year median of 6.63. 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 $168.79, compared to a current price of $134.91 — trading 20.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 4.96%, which is 25% below median its 10-year median of 6.63 and 76.3% below the Business Services industry median of 20.91. Herc Holdings' overall GF Score™ is 84/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Herc Holdings (HRI), the current ROC (Joel Greenblatt) % is 4.96% 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 $134.91 is trading 20.1% below its estimated GF Value™ of $168.79.
GuruFocus considers Herc Holdings to be Modestly Undervalued.
Key valuation signals for HRI:
ROC (Joel Greenblatt) %: 4.96% (25% below median its 10-year median of 6.63)
GF Value™: $168.79 vs. price of $134.91 (20.1% below fair value)
Industry Position: 76.3% below the Business Services median (#754 of 1080)
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%).
84GF Score
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