HRI (Herc Holdings) ROCE %: 3.23% (As of Mar. 2026)

What is Herc Holdings ROCE %?

Herc Holdings HRI +6.82% 86 ROCE % is 3.23% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Herc Holdings's annualized ROCE % for the quarter that ended in Mar. 2026 was 3.23%.

Herc Holdings (NYSE:HRI) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Herc Holdings ROCE % Related Terms

Herc Holdings ROCE % Historical Data

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The historical data trend for Herc Holdings's ROCE % 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 ROCE % Chart

Herc Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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10.44

11.94

11.27

7.95

4.10

Herc Holdings Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															2.97	1.57	5.23	4.62	3.23

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Herc Holdings Inc HRI

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Herc Holdings ROCE % Calculation

Herc Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	417	/	( ( (7877 - 562)	+	(13776 - 730) )	/ 2 )
	=	417	/	( (7315	+	13046)	/ 2 )
	=	417	/	10180.5
	=	4.10 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	420	/	( ( (13776 - 730)	+	(13564 - 628) )	/ 2 )
	=	420	/	( ( 13046	+	12936 )	/ 2 )
	=	420	/	12991
	=	3.23 %

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

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 3.23% mean?

Herc Holdings (HRI) has a ROCE % of 3.23% as of Mar. 2026.

Is Herc Holdings' ROCE % too high?

Herc Holdings' current ROCE % is 3.23%. The Business Services industry median ROCE % is 8.88. Herc Holdings' value of 3.23% is 63.6% below this industry median. 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' ROCE % compare to WSC and EQPT?

Herc Holdings' ROCE % of 3.23% can be compared against companies in the Business Services industry. The industry median ROCE % is 8.88. Herc Holdings' value of 3.23% is 63.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Business Services company?

The median ROCE % among Business Services companies is 8.88, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Herc Holdings's current ROCE % of 3.23% is 63.6% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Business Services industry, the median ROCE % is 8.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herc Holdings's current ROCE % is 3.23%. 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 ROCE % is 3.23% and 63.6% below the Business Services industry median of 8.88. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Herc Holdings (HRI), the current ROCE % is 3.23% 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:

ROCE %: 3.23%
GF Value™: $168.69 vs. price of $153.00 (9.3% below fair value)
GF Score™: 86/100 with 9 warning signs
Industry Position: 63.6% below the Business Services median

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 Business Description

Industry Industrials Business Services

Comparable Companies WSC EQPT GATX CAR MGRC CTOS HTZ VSTS PRG WLFC URI SUNB AER XPAR:AYV UHAL R BSP:RENT3 TSX:EFN TSE:8439 HKSE:02588

Other Exchanges 0J4L:UK H9B1:Germany

Address 27500 Riverview Center Boulevard, Bonita Springs, FL, USA, 34134

Website https://www.hercrentals.com

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

$153.00

Price

$168.69

GF Value

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